The Most Popular French Saving Vehicle
Assurance-Vie: French Saving Vehicle
Over a third of the French population hold an Assurance-Vie: it is the French preferred saving vehicle…
An Assurance-Vie is simply a wrapper that holds financial investments. It is similar to a Life Policy in other countries - but there are some key-French rules worth understanding.
Assurance-Vie must not be confused with a life or death insurance, it is one of the best ways to protect and grow your savings efficiently and provide benefits on inheritance taxes to beneficiaries in case of death.
A Tax Effficient Saving Vehicle that Deserves to Be Known
Advantage of An Assurance-Vie for A Non-Resident
Most of the instruments held in Assurance-Vie are managed funds, with a mix of shares and bonds, or guaranteed Euro funds, always managed internally by an insurance company with assets on Government Bonds, which is very secured as the insurer guarantees the original capital invested and offers interest between 2,8% and 3,5% by year.
The advantage of an Assurance-vie for a non-resident, is that you don’t pay any French wealth tax on it. The Assurance-vie contract can be under the French, Belgium or Luxemburg law and in multiple currencies (Euro, Dollar or Sterling).
The key cost to consider are the initial set-up fees (between 0% to 3%), the annual management fees (around 0,8%) and the taxes, which are applied on the gain (not the invested capital), only within the withdrawal before 8 years. After 8 years, withdrawals are tax-free.
Please note that François Hollande has recently increased taxes on ordinary financial investments but no changes have been made to taxes on Assurance-Vie.
French Mortgage Expert has reviewed a large number of French and Luxemburg Assurance-Vie contracts with the lowest entrance fees, the most secured and the highest returns on Euro, Dollar or Sterling Funds.