Life insurance and capitalization contract

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The advantages of Life Insurance in Luxembourg for an English or French Domiciled person

Why Luxembourg?

- Luxembourg law offers enhanced security to investors. The investor benefit the famous "super-privilege" in which the investor is a creditor number 1.

- The choice of products on which investing is much broader than in French law with a possibility of accommodating unlisted assets.

- Protection against creditors: the contract is not attachable by creditors of the subscriber even if it can be pledged in a credit transaction.

- Possibility to integrate your assets to a FIC if the amount of your policy is less than the minima subscription.

The life insurance contract is more advantageous to the estate while the capitalization contract is more advantageous to the ISF

Income taxation for these two types of contracts

Depending on the holding period of the contract, interest and capital gains are partially exempt, the following tax rates in case of redemption:

  - Up to 35% before the end of the first four years;
  - Up to 15% between 4 and 8 years.
  - Up to 7.5% beyond 8 years

In addition, the insured receives an allowance of 4.600 euros if he/she is single or 9.200 euros if he/she is married.

  (social security contributions are added for 15.5%)

avantages fiscaux et patrimoine contrat de capitalisation

The advantages of Capitalization contract in Luxembourg for an English or French Domiciled person