Spring 2022

What is a
French Assurance Vie
We talk to Paul Flintham, an International Financial
Advisor at Beacon Global Wealth about the
Assurance Vie…
Well, literally translated it means Life
Insurance, but actually it’s quite different
from the life insurance policy you might be
used to in say the UK. An Assurance Vie
is essentially a life insurance wrapper that
holds investments. It’s available to French tax
residents, including foreign nationals living
in France and as well as offering inheritance
advantages, it’s one of the most versatile and
efficient tax structures in France.
Key points of an Assurance Vie (AV)
Tax: Investments held within the wrapper are
not subject to capital gains tax or income
tax while the funds stay inside the policy and
no withdrawals are made. You can withdraw
capital tax-free, only the growth element of
any withdrawal is subject to tax. You must
declare the growth every year you on your
annual tax form, but no tax is paid unless you
make a withdrawal. Even then the tax is only
paid on the ‘growth’ part and after 8 years,
there is an income-tax-free allowance of
€4,600 per person (Social Tax is still payable).
An AV may also be held in joint names,
meaning an allowance of €9,200 per couple
(tax is paid by couples in France).
Inheritance: Assets within an Assurance Vie
may be dispersed as you wish on death, and
there are tax advantages for beneficiaries.
If you open the AV before you reach 70,
beneficiaries of an AV have an (extra)
allowance of up to €152,500 each before
tax. Compared to €1594 which is the normal
allowance for non-relatives (this also includes
unmarried partners in France). If you open the
A.V. after you’re 70, the allowance drops to
€30,500 per person.
Currency: International AV versions can
hold different currencies, which is useful if the
foreign exchange rate isn’t favourable, and
you have assets in different currencies.
If you are tax resident in France and hold
PEPS or ISA’s, you will have to declare the
accounts and amounts on your French tax
return. If you opened an AV your tax would be
deferred until you take a withdrawal.
This is a simple view of how an Assurance Vie
works but for many people this is an excellent
investment vehicle for tax savings and for
inheritance planning.
If you’d like to find out more or have questions
about how to maximise your investments,
contact Beacon Global Wealth for an
obligation free consultation at:
enquiries@bgwealthmanagement.net
beaconglobalwealth.com
The information on this page is intended as an introduction only
and is not designed to offer solutions or advice. Beacon Global
Wealth Management can accept no responsibility whatsoever for
losses incurred by acting on the information on this page.
Beacon Global Wealth Management are members of Nexus
Global (IFA Network). Nexus Global EU is a division of Blacktower
Financial Management (Cyprus) Limited (BFMCL) and Blacktower
Insurance Agents & Advisors Ltd (BIAAL). Beacon Global Wealth
Management is an Appointed Representative of BFMCL which
is licensed and regulated by the Cyprus Securities & Exchange
Commission (CySEC) - Licence No. 386/20. Beacon Global
Wealth Management is an Appointed Representative of BIAAL
which is licensed and regulated by the Insurance Companies
Control Service (ICCS) - Licence No. 5101
The Good Life France | 103