Keep. A French contract does not close at the outset. Redemptions made after departure are taxed in France by a flat levy of 12.8 % (7.5 % on request if the contract is at least 8 years old), without French social security contributions in principle, and the country of residence may in turn tax.
Adapt. Notify the insurer of the new address and tax residence, check that they accept new payments from the host country, and decide before departure whether a redemption should be made before or after.
Transfer. To continue investing from abroad, a Luxembourg contract is an option (see page Luxembourg assurance-vieThe transition from a French contract to a Luxembourg contract depends on the rules of each insurer; if it involves a redemption, it is a tax event, which must be calculated before any decision is made.
What is taxed in France after departure
The levy
For a beneficiary without a tax residence in France, the BOFiP (BOI-RPPM-RCM-30-10-20-10) describes a flat-rate withholding tax on the proceeds of contracts taken out with an insurer established in France. The rate is 12.8% for premiums paid since September 27, 2017, with a higher rate if the beneficiary is in a non-cooperative state or territory.
The reduced rate of 7.5 %
Upon request by claim, if the contract is at least 8 years old (6 years for a contract predating 1990), the portion of the proceeds attributable to premiums under €150,000 can be reduced to 7.5% of the % threshold. The €150,000 threshold applies only to premiums paid to insurers established in France. This rate is not available to individuals domiciled in a non-cooperative state or territory.
Non-residents do not benefit from the €4,600/€9,200 allowance. The withholding tax is tax-deductible, but it remains included in the reference taxable income and is reported on form 2042. Tax treaties may reduce or eliminate this rate.
Social charges
According to impots.gouv.fr, social security contributions only apply to non-residents' income and capital gains from French-source real estate: life insurance gains are therefore not subject to them. If the insurer has not been informed of the departure, they may continue to deduct these contributions: this should be reported as soon as possible (see social security contributions on life insurance).
Upon death
The levy under Article 990 I applies if the insured person was a tax resident of France at the time of death, or if the beneficiary was and has been a tax resident of France for at least 6 of the 10 preceding years (BOI-TCAS-AUT-60, version of 30/03/2023). A tax allowance of €152,500 per beneficiary applies, with a tax rate of 20% up to €700,000 of taxable income, and 31.25% above that amount. An expatriate whose children live in France is therefore still subject to this tax. See Article 990 I or 757 B.
A case study with figures: buying back before or after departure (fictitious profile)
A single person took out a contract in November 2017 and paid €100,000 into it in a single payment. It is worth €150,000 in October 2026. They buy back €50,000 of it, which contains €16,667 worth of products (50,000 × 50,000 / 150,000).
| Buyback before departure (resident) | Buyback after departure (non-resident) | |
|---|---|---|
| Income tax / withholding | (16,667 − 4,600) × 7.5 % ≈ €905 | 16,667 × 12.8 % ≈ €2,133, reduced to €1,250 (7.5 %) after claim |
| Social security contributions (17.2 %) | ≈ €2,867 | €0 in principle |
| Total France | ≈ €3,772 | ≈ €1,250 after claim |
| Host country tax | not applicable | to be added depending on the country |
The outcome depends on the host country: a country that also mandates buybacks can eliminate the difference. This case illustrates a single situation, not a recommendation to buy back after leaving the country. For the mechanics of buying back shares from abroad, see [link/reference]. the repurchase of a French life insurance policy from abroad.
Declare a contract opened abroad
If you ever return to France, life insurance contracts opened abroad must be declared using form 3916-bis: see declare a assurance-vie contract opened abroad.
How Balmont Wealth tracks your contracts
Balmont Wealth, the firm's wealth management application, retains for each contract the subscription date, the premiums paid and the surrender value: three data that determine the rate and the ceiling of €150,000. Create my free account.
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Frequently asked questions
Do I need to close my French life insurance policy if I move abroad?
No. A French contract is not automatically closed. You must inform the insurer of your new address and tax residence, and verify that they accept new payments from your new country of residence.
What deductions are made on a buyback made after my departure?
A flat-rate withholding tax of 12.8 % on the products (increased rate for a non-cooperative State or territory), reduced to 7.5 % on request if the contract is at least 8 years old, for the portion relating to less than €150,000 of premiums paid to insurers established in France.
Do social security contributions apply to a non-resident?
According to impots.gouv.fr, social security contributions only apply to non-residents on income and capital gains from French-sourced real estate. If the insurer has not been informed of the departure, they may continue to deduct these contributions: this must be reported.
Does my life insurance policy remain subject to Article 990 I if I live abroad?
Yes, in two cases: the insured is tax resident in France at the time of death, or the beneficiary is and has been for at least 6 years out of the previous 10.
Review your contracts before you leave
Balmont Conseil is based in Lyon and has been advising families and business leaders with assets spread across multiple countries for almost 14 years. To get a quote for a buyout before or after your departure, please schedule an appointment.
Alexis SagnierFinancial and real estate investment advisor, insurance broker, AMF certified
Founder of Balmont Conseil, Lyon (ORIAS 13003497)
Official sources
- impots.gouv.fr, total or partial redemption of a assurance-vie policy by a non-resident: https://www.impots.gouv.fr/portail/international-particulier/questions/comment-sont-imposees-les-assurances-vie-en-cas-de-rachat-total
- BOFiP, BOI-RPPM-RCM-30-10-20-10, levy on the proceeds of life insurance contracts of non-residents: https://bofip.impots.gouv.fr/bofip/11359-PGP
- impots.gouv.fr, I am a non-resident, am I liable for social security contributions (CSG, CRDS)? https://www.impots.gouv.fr/international-particulier/questions/je-suis-non-resident-suis-je-redevable-des-contributions
- BOFiP, BOI-TCAS-AUT-60, levy on death benefits (article 990 I): https://bofip.impots.gouv.fr/bofip/1335-PGP.html/identifiant=BOI-TCAS-AUT-60-20230330
- impots.gouv.fr, taxation of proceeds from assurance-vie contracts: https://www.impots.gouv.fr/particulier/questions/jai-effectue-des-retraits-sur-mon-contrat-dassurance-vie-quelles-sont-les
- impots.gouv.fr, assurance-vie and PEA: https://www.impots.gouv.fr/particulier/lassurance-vie-et-le-pea-0
