Housing savings: PEL and CEL
The Housing Savings Plan is an old product on which regulation has evolved considerably. In the early 1990s, the duration of the savings phase was 5 years with a government premium of up to 10,000 francs. The proceeds were neither taxed nor subject to social security contributions. In 1992, the minimum duration was reduced to 4 years. Then, social contributions were put in place …
The ELP is a state-assisted scheme through the payment of a premium of up to € 1,525. For ELPs opened before 12 December 2002, this premium was included in the rate of remuneration of the plan and thus paid systematically. Over time, the ELP has become an excellent and very cost-effective means of saving without using the original purpose of obtaining credit.
At the end of 2002, there was a first round of regulation: the ELPs opened since 12 December 2002 are no longer entitled to this bonus automatically. It is now paid to the borrower only if he uses his rights to obtain a home loan savings.
Paradoxical situation for Housing Savings Plans opened between December 12, 2002 and July 31, 2003: this PEL is paid at a rate of 4.50% but the portion of premium will be removed at the closing to be restored only in case Of loans. As of August 1, 2003, a new ELP is proposed, paid for the first time at a premium rate.
End of 2005, second round of screw. From January 1, 2006, social contributions on interest that were previously deducted only at the balance sheet date are also deducted from the tenth anniversary of the plan and each year. See details on the social levies page by product. As from 1 January 2006, the interest of ELPs over 12 years old becomes taxable. See tax page.
From 1 March 2011, a new housing savings plan is proposed. From now on, the social contributions are deducted every year and the holding period is limited to 15 years.