Assurance Vie | Financial Advice in France for Expats
As an Expat in France, the Assurance Vie is sure to form part of your financial planning,
The French 'assurance vie' is a popular investment account that offers a range of benefits for long-term savings and investment goals. Although the name might suggest it's just life insurance, it's actually much more than that, combining both investment and insurance features.
This French investment account allows you to grow your money by investing in various financial products like mutual funds, stocks, bonds, and sometimes even real estate.
As an expat, understanding the 'assurance vie' can be valuable in terms of tax advantages, flexibility, and the potential to pass on your investments to beneficiaries.
In this article, we'll explain the key features and benefits of the French Assurance Vie and how it can be beneficial for expats living in France.
Tax In France
Taxation in France is famously high, which makes it crucial for individuals to explore tax-efficient investment options.
In France, taxes play a significant role in funding public services and government expenditures. Here's a brief summary of the main taxes in France:
Income Tax: France has a progressive income tax system, which means that tax rates increase as income levels rise. Income tax is calculated based on taxable income, which includes wages, business profits, and other sources of income.
Value Added Tax (VAT): VAT, known as "TVA" in France, is a consumption tax imposed on most goods and services. There are different VAT rates, with the standard rate currently set at 20% and reduced rates for certain goods and services.
Social Security Contributions: France has a comprehensive social security system funded through contributions from both employees and employers. These contributions finance various social benefits, including healthcare, retirement pensions, unemployment benefits, and family allowances.
Wealth Tax: In the past, France had a wealth tax known as "Impôt de Solidarité sur la Fortune" (ISF). However, it was replaced by a real estate wealth tax called "Impôt sur la Fortune Immobilière" (IFI) in 2018. IFI applies to individuals with significant real estate assets.
Capital Gains Tax: Capital gains tax is applicable when you sell assets such as property, stocks, or other investments that have increased in value. The tax rate depends on the nature and duration of the investment.
Inheritance and Gift Tax: In France, inheritances and gifts are subject to taxation. The tax rates vary depending on the relationship between the donor and recipient, as well as the value of the inheritance or gift.
It's important to note that this is a general summary of the tax system in France, and specific tax obligations can vary based on individual circumstances and changes in tax legislation. Consulting with a tax professional is recommended to ensure compliance for your personal situation.
The Assurance Vie account stands out from a taxation perspective. With its favourable tax treatment, including the potential for tax-free growth and deferred taxation on gains until withdrawal, it can be a valuable tool for creating long-term tax-efficiency in France.
As always, it’s important to consult with a financial adviser or tax professional to understand how the assurance vie can be tailored to your specific tax situation and long-term financial goals in order to maximise tax efficiency.
Key Features of The Assurance Vie
Tax-Efficiency
The gains you make on your investments within the account are generally not subject to income tax or capital gains tax until you withdraw the money. This allows your investments to grow tax-free over time, which can be advantageous for long-term savings and investment goals.
Investment flexibility
The account allows you to invest in a wide range of financial products such as mutual funds, stocks, bonds, and sometimes even real estate. This flexibility gives you the opportunity to diversify your investments and potentially achieve higher returns whilst managing risk.
Withdrawal options
You have the flexibility to make partial withdrawals or withdraw the entire amount from your "assurance vie" account when needed. This can be useful in case of unexpected expenses or when you require access to your funds.
Estate planning and inheritance
The Assurance Vie account offers the option to name beneficiaries. In the event of your passing, the money in the account can be passed on to your chosen beneficiaries, and they may benefit from certain tax advantages as well. It can be a useful tool for estate planning and passing on wealth to your loved ones.
Protection from creditors
In certain situations, the Assurance Vie account can provide protection from creditors. This means that if you face financial difficulties or legal claims, the assets within your account may be safeguarded.
Professional management
Many Assurance Vie accounts offer professional management services, which means that experienced fund managers oversee the investments within the account. This can provide peace of mind and expertise in managing your investment portfolio.
Remember that these benefits may vary depending on the specific terms and conditions of the "assurance vie" account and your individual circumstances. It's important to consult with an independent expat financial advice firm to understand the full details and implications based on your situation.
The Lowest Cost Assurance Vie by The Wealth Genesis
At The Wealth Genesis, we operate on a flat-fee structure for all our international and offshore investment account advice. This allows us to offer the lowest cost assurance vie in France compared with French banks and other expat financial advice companies.
By charging a transparent and competitive fee, we can ensure that you receive the maximum value for your investment. We prioritize keeping costs as low as possible and with our regular and ongoing investment reviews we aim to deliver strong and consistent investment performance.
We charge a fixed fee and give unbiased advice, meaning you can trust that our recommendations are based on your financial goals.
Our team are dedicated to helping you make informed decisions and achieve long-term financial success while minimizing unnecessary expenses.
If you're looking for an Assurance Vie account that offers both cost efficiency and impartial advice, The Wealth Genesis is here to assist you. Our team of experts is ready to guide you through the process and help you lay the foundations for your retirement in France.
To begin your journey with us, get started today using our online form.
