In summary…
Holding French SCPI units (French real estate investment companies) in a Luxembourg assurance-vie contract is possible, but the arrangement carries a cost that a French contract does not: the Luxembourg insurer is taxed in France, at 25%, on its share of the SCPIs' profits. The 33.33% rate often quoted is the former corporate income tax rate. Access to SCPIs also depends on your investor category and on the insurer.
1. What the insurer pays in France
An SCPI is tax-transparent: each unitholder is taxed on its share of the profits. When the unitholder is a Luxembourg insurer, a non-resident legal entity, it is liable to French corporate income tax on its share of the profits of French SCPIs (BOI-IS-CHAMP-60-10-30). The France-Luxembourg tax treaty of 20 March 2018 leaves the taxation of property income to the State where the property is located.
- On rental income: corporate income tax at the standard rate of 25% since 2022, calculated on taxable profit, not on the amounts distributed.
- On the sale of units: 25% on the capital gain (Article 244 bis A of the French Tax Code, CGI).
The 33.33% figure still quoted is the standard corporate income tax rate before it was gradually reduced to 25%. How the insurer passes this cost on to the value of the unit-linked fund varies from one insurer to another: ask for the fund's tax note in writing.
2. Who can access them
Since 1 February 2026, circular letter 26/1 of the Commissariat aux Assurances, the Luxembourg insurance regulator, has replaced circular letter 15/3 for new contracts. It classifies policyholders by amount invested and by securities wealth:
| Category | Minimum investment | Securities wealth |
|---|---|---|
| A | €125,000 | €250,000 or more |
| B | €250,000 | €500,000 or more |
| C | €250,000 | €1,250,000 or more |
| D | €1,000,000 | €2,500,000 or more |
- Dedicated internal fund: a regulatory minimum premium of €125,000; insurers often set a higher amount.
- Specialised insurance fund: no regulatory premium or wealth requirement.
- Standard unit-linked funds: an SCPI is admitted only in a small proportion and if the insurer guarantees its liquidity; whether it is offered depends on each insurer.
3. For you, as a French tax resident
The Luxembourg contract is taxed like a French contract: annual allowance of €4,600 or €9,200 on gains after eight years, 7.5% or 12.8% levy, 17.2% social charges in 2026, and estate transfer under Articles 990 I and 757 B. It must be reported every year on form 3916-3916 bis, failing which a fine of €1,500 per undeclared contract applies.
4. Protection of assets: what it covers
The assets backing the contracts are held by a custodian bank under an agreement approved by the Commissariat aux Assurances. They form a separate pool reserved by priority right for policyholders (Article 118 of the Law of 7 December 2015). This mechanism protects the ranking of your claim if the insurer fails, not the value of the funds.
The liquidation of FWU Life Insurance Lux, ordered on 31 January 2025, showed its limits: contracts frozen, assets sold by the liquidator, unit-linked claims calculated on the number of units held. Luxembourg has no guarantee fund for assurance-vie.
In France, the assurance-vie guarantee fund (FGAP) covers up to €70,000 per policyholder and per insurer, for French insurers. The power of the High Council for Financial Stability to restrict surrenders (Sapin 2 law) applies to insurers supervised in France; Luxembourg insurers answer to their own regulator, which also has blocking powers, and a European directive will harmonise these powers from 2027.
5. Worked example
Situation. A French resident is considering investing €300,000 in French SCPIs through a Luxembourg contract.
Issue. For every €100 of SCPI taxable profit, the insurer owes €25 of corporate income tax in France. This drag does not exist in a French contract.
Strategy. Compare, fund by fund, the return after this cost with the same fund in a French contract, and keep the Luxembourg contract for the reasons that justify it: international mobility, dedicated funds, spreading risk across insurers.
Result. The choice is made on the insurer's written figures, not on reputation.
Frequently asked questions
Is the 33.33% rate still current?
No. It is the former standard corporate income tax rate. A non-resident insurer has been taxed at 25% since 2022.
Does the Luxembourg priority right guarantee my capital?
No. It gives policyholders priority over the contracts' assets if the insurer fails. The value of the funds remains exposed to the markets.
Does a Luxembourg contract have to be declared?
Yes, every year, on form 3916-3916 bis filed with the income tax return.
Considering a Luxembourg contract? Book an appointment — we compare the funds, with the insurer's figures in writing. See also Luxembourg assurance-vie.
