• I live in France. Can I take out a life insurance policy with a Luxembourg company?

    Our reply
  • I am 64, a widower and I’ve got two children. I’ve sold my company and I want to invest the proceeds of the sale, EUR 3 million, in a secure…

    Our reply
  • We are French and have been living in Belgium for more than 10 years. We have two grown-up children, one lives in Belgium and one in France. How can we make a gift…

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" I live in France. Can I take out a life insurance policy with a Luxembourg company? "


Our reply:

Yes you can, thanks to the principle of the freedom to provide services, an insurance company established within the European Union may offer its products and services in all Member states of the EU.

In this case and given that you will remain liable to the French tax system you will have to make a special declaration in your annual tax declaration mentioning the details of the life insurance policy taken out with a foreign company, the date of the policy and its duration.
This also means that when surrendering the life insurance policy, the capital gains will be taxed. The policyholder who takes out a lifeinsurance policy with VITIS LIFE can in this case choose between two types of tax system:

  • Tax on individual income:
    This system allows you to declare the capital gains yourself when you fill in the tax declaration form. In this case, VITIS LIFE will send you a tax appendix specifying the basic taxable amount to be entered on your tax declaration.
  • Flat-rate withholding tax:
    If you mandate VITIS LIFE for this, this system will allow us to withdraw the tax directly from the capital gains plus the social security charges. We will pay the taxes directly by deducting them from the total amount of the surrender that you request.

In the event of the insured’s death,

  • for the insurance benefits corresponding to the premiums paid before the insured reached 70, VITIS LIFE is obliged to pay 20% and 31,25% as stipulated in Article 990 1 of the Code Général des Impôts (CGI or General Tax Code), only this payment being considered legal by the French tax authorities. Prior to the liquidation of the payments of the abovementioned 20% and 31,25% and the payment of the insurance benefits to the beneficiaries, VITIS LIFE, duly mandated by each of the beneficiaries will provide the French tax authorities with the details of the policy and the amounts to be allocated to each beneficiary by means of its tax representative.
  • for the insurance benefits corresponding to the premiums after the insured reached 70 and subject to inheritance tax on death, VITIS LIFE duly mandated by each of the beneficiaries will provide the French tax authorities with the details of the policy and the amounts of the premiums paid by the insured after the age of 70 by means of its tax representative. Payment of the insurance benefits is made upon presentation of a certificate provided by the tax authorities stating that IHT (droits de mutation par décès) has been paid or is not due.

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