7 Reasons to consider Assurance Vie if you're a British Expat living in France

Insight | by Stephen Kiggins

If you have decided to settle in France, you may be looking for a tax efficient way to invest and plan for the future. As an expat, opening a French life assurance policy, an 'Assurance Vie', can provide you with a flexible and effective investment and estate planning solution.

If you are resident in France, an 'Assurance Vie' life policy provides a tax wrapper for your investments, enabling you to generate tax-free capital growth, and benefit from a reduced rate of taxation on those investment gains when withdrawals are made.

This versatile financial instrument also provides flexibility, enabling you to align and adapt your investments according to changing circumstances. And because Assurance Vie policies are aligned with France’s legal and tax framework they act as an effective estate planning tool, ensuring that your beneficiaries receive favourable tax treatment with reduced inheritance tax liabilities.

Effectively addressing the key challenges of taxation, estate planning and financial flexibility, opening an Assurance Vie policy can serve as a valuable solution for British expats in their adopted country.

7 Reasons why you should consider Assurance Vie

1. Tax-free Growth

There is no income or capital gains tax to pay on your funds whilst they remain in the policy, no matter how much your capital has grown.

2. Tax-efficient Withdrawals

Withdrawals are taxed very favourably, with only the growth element being taxed rather than the whole withdrawal.

3. Income Tax Reduction

The rate of income tax chargeable on the growth element of a withdrawal is reduced if the policy is held for eight years or more.

4. Currency Options

You can elect to denominate your investments in Euros, Sterling, US Dollars or Swiss Francs.

5. Inheritance

Succession law does not apply to Assurance Vie, so it allows you to pass on additional capital to your chosen beneficiaries. Your capital will be passed to your surviving spouse or partner free of tax and it is possible to pass on up to €152,500 entirely tax free to each child beneficiary. This is in addition to the usual direct line allowance under French inheritance law (€100,000).

6. Investment Strategies

With exclusive access to Forth Capital’s award-winning, low-cost, fully diversified investment strategies, investment options can be fully aligned to your risk profile.

7. Unlimited Investments

There is no limit to the amount that you can invest in the policy.

Is it the right solution for you?

Our dual-qualified advisors can help you to explore all the investment and estate planning opportunities available to you as an expat in France, making the complex simple and clearly explaining how each opportunity, including Assurance Vie, could benefit you.

Our international financial planning expertise means we can help you to achieve your future goals and make your money work harder for you, in the most tax efficient way possible.

Making the complex simple - We're here to help

We have a unique understanding of the complexities of expat life and the specific challenges facing expats in France. Having a trusted advisor in your corner who truly knows the ins and outs of what you’re going through, and will work closely with you to create a long term financial plan, is the best way to ensure you’re making the most of your money – and afford you peace of mind every step of the way.

To learn more about Assurance Vie and how we could help you, download our E-Guide and schedule a consultation with us today or email us at [email protected].

This communication is for information purposes only and does not constitute financial, legal, or tax advice. Please schedule a meeting to discuss your circumstances and receive personal financial planning advice.