Moving to France – or returning after years abroad? The months before you become French tax resident are a rare planning window. A Luxembourg life insurance policy subscribed while you are still non-resident arrives in France with full benefits, and in some cases with advantages that can no longer be obtained once you have moved.
Why subscribe before you become French tax resident
French residents know assurance-vie as the country’s favourite savings vehicle. What is less known is that a Luxembourg policy is treated by France exactly like a French one for income tax and inheritance purposes – while adding stronger investor protection and international flexibility. And timing matters:
- Inheritance framework. Under article 990 I of the French tax code, premiums paid before age 70 benefit from an allowance of €152,500 per beneficiary, with favourable flat rates above it. Subscribing early – and before 70 – locks the clock in your favour.
- No wealth-tax surprises. France’s IFI targets real estate; financial assets held through life insurance are generally outside its scope. New residents also benefit from a five-year exemption on non-French real estate.
- Policies set up while non-resident travel well. The contract is simply endorsed to French-compliant status when you arrive – no surrender, no taxable event, no loss of seniority for the 8-year tax clock that makes withdrawals cheaper in France.
This overview is general information based on rules as we understand them in 2026, not tax advice. Cross-border situations (pensions, trusts, foreign real estate) should be reviewed with your adviser before subscription.
The cross-border reality: succession across several countries
Most of our international clients have family in more than one country – a spouse of a different nationality, children settled abroad, property in two or three jurisdictions. Luxembourg policies are built for exactly this: beneficiary clauses can be drafted with precision (usufruct for the surviving spouse, bare ownership for children, staggered payments), in coordination with the EU Succession Regulation and the relevant tax treaties. This is where specialist structuring earns its keep.
Who this suits
- Executives, entrepreneurs and retirees relocating to France within the next 24 months;
- French citizens abroad preparing their return;
- Non-residents selling a business or property who want to position €250,000 to several million euros before the move;
- Families needing a single structure that works on both sides of the border.
How WSI Conseil works with you
WSI Conseil is an independent, regulated brokerage firm (ORIAS-registered) based in Paris – 21 boulevard Montmartre, 75002. The two founding partners personally handle international cases, in English, from the first conversation to subscription and ongoing management. We work with fifteen-plus Luxembourg insurers and negotiate 0% entry fees and institutional terms. If your timeline is short (a sale closing, a fixed relocation date), tell us – subscription before a deadline is a familiar exercise.
Frequently asked questions
I am not yet French resident. Can I really subscribe now?
Yes – Luxembourg insurers accept residents of most countries, and the policy is adapted when your residence changes. That is precisely its strength.
Does the 8-year French tax clock start at subscription?
The policy’s anniversary date is set at subscription – subscribing earlier is generally better. How the holding period is counted in your specific case should be confirmed with your adviser.
What if I ultimately do not move to France?
Nothing is lost: the policy remains valid and can be endorsed to your actual country of residence.
