Assurance Vie in France: Why It’s a Smart Move for UK Expats
If you’re a UK expat living in France, you’ll already know that the French tax system can be challenging to navigate. Between income tax, social charges, and inheritance rules, it’s essential to structure your wealth efficiently.
That’s where the Assurance Vie comes in — a French-compliant investment solution that’s as powerful as it is flexible. At Futurus Global Wealth, we help expats understand and benefit from this structure every day.
What Is an Assurance Vie?
Despite its name (“life assurance”), an Assurance Vie isn’t about life insurance. It’s a tax-efficient investment wrapper that allows you to hold assets such as funds, bonds, or managed portfolios within a single policy.
You can think of it as a personal investment account with major tax and estate planning benefits — designed specifically for residents in France.
The Key Benefits for British Expats in France
1. Significant Tax Advantages on Growth and Withdrawals
One of the biggest draws of an Assurance Vie is its tax treatment.
Your investments can grow largely tax-deferred, allowing your money to compound more efficiently.
When you do make withdrawals, only a small proportion of the gain is taxable and after eight years, you benefit from reduced income and social tax rates.
This makes it one of the most tax-efficient investment structures available in France.
2. Flexibility and Access to Your Capital
Unlike traditional pension plans, an Assurance Vie offers complete access and control.
You can withdraw funds regularly or occasionally, adjust your investment mix, or even change currencies — all without heavy penalties.
That’s particularly valuable for expats whose income needs or circumstances can change from one year to the next.
3. Powerful Inheritance Tax Planning (Before Age 70)
This is where the Assurance Vie becomes a game-changer.
If you open your policy before turning 70, each of your chosen beneficiaries can receive up to €152,500 completely free of inheritance tax (IHT).
That’s per beneficiary, not per policy.
For UK expats living in France, this can drastically reduce French inheritance tax liabilities and ensure more of your wealth goes to your loved ones — not the taxman.
4. Multi-Currency and Cross-Border Flexibility
Modern Assurance Vie policies are tailored for international investors, meaning you can hold assets in multiple currencies — typically EUR, GBP, or USD.
This reduces currency risk and ensures your portfolio stays aligned with your lifestyle, whether you remain in France or move elsewhere in the future.
Why the Timing Matters
If you’re considering an Assurance Vie, it’s worth acting sooner rather than later.
Opening one before age 70 unlocks the most generous inheritance tax benefits, so it’s wise to plan early and structure your wealth proactively.
“According to the French tax authority, Assurance Vie policies opened before age 70 receive more generous inheritance allowances…”
In Summary
For British expats in France, the Assurance Vie is one of the most versatile and valuable financial tools available. It offers:
✅ Tax-efficient growth and reduced social taxes
✅ Flexible access to your capital
✅ Substantial inheritance tax savings (when opened before 70)
✅ Multi-currency options ideal for cross-border lifestyles
It’s a cornerstone of smart, long-term financial planning. Helping you grow, protect, and pass on your wealth efficiently.
Start Your Assurance Vie Strategy Today
If you’re living in or moving to France, now is the perfect time to explore how an Assurance Vie can enhance your financial plan.
At Futurus Global Wealth, we specialise in helping UK expats structure their assets efficiently, manage currency exposure, and prepare for the next generation all within fully regulated, secure frameworks.