Can a Luxembourg insurer offer its policy in France? The freedom to provide services

In principle, yes. The freedom to provide services (FPS) allows an insurer authorized in one European Economic Area (EEA) state to provide services in another state without having a permanent establishment there. The Insurance Commission (CAA), the authority of the country of origin, describes Luxembourg life insurers operating under this regime. In France, the ACPR (French Prudential Control and Resolution Authority) indicates that insurance distribution activities carried out by distributors from another EEA state are subject to rules of general interest. From a tax perspective, the allowance applies under the same conditions as with a French insurer, and the 7.5% VAT rate assumes that the insurer is established in France or another EU member state.

Two ways to intervene in another state

The ACPR (Bank of France) distinguishes between two regimes, from the French perspective:

• freedom of establishment : an insurer authorized in one EEA State provides services in another State through a permanent entity, a branch; ;
• the freedom to provide services (FPS) : it provides services in another state without a permanent establishment.

Who controls it?

For a Luxembourg insurer, the authority of the country of origin is the CAA. It is the CAA that approved and supervises the insurer, including in financial matters.

The CAA specifies in its 2025-2026 annual report that its "Life" technical committee monitors life insurers operating under the freedom to provide services (FPS) or freedom of establishment (FEC). This page does not provide any figures on the FPS share or the destination countries.

To understand what the CAA controls (custodian, asset segregation, lien), read our page on protecting savings in Luxembourg life insurance.

What the insurer must respect in France

According to the English version of the ACPR website, the operation of insurance distribution activities in France by distributors registered in another EEA state is governed by French rules of general interest. The ACPR provides a list, which it describes as indicative, of ten categories. These include, among others, rules on customer information, intermediary remuneration, and conflicts of interest. These three examples do not constitute the complete list.

The ACPR website does not mention Luxembourg. It describes the regulations applicable to EEA distributors operating in France. For a specific contract, the complete list of rules can be found on the ACPR website.

One point of protection that differs in France

The ACPR specifies that the Personal Insurance Guarantee Fund (FGAP) does not intervene in the event of failure of personal insurance companies which operate in France under freedom to provide services or freedom of establishment "on entry", that is to say, from the point of view of France, coming from another EEA State.

The ACPR website does not mention Luxembourg. For a specific contract, you must consult its documents.

And what about taxes? The rules for an insurer in the European Union

The BOFiP (Official Bulletin of Public Finances) and the administrative notices cited below stipulate the following for contracts with insurers from the European Union or the EEA:

• The dejection €4,600 (single person) or €9,200 (couple) applies under the same conditions as for a contract taken out in France.
• The rate of 7.5 % In addition to the contract's age and the threshold, it requires an insurer established in France or another European Union member state (BOFiP). The BOFiP does not mention Luxembourg. Luxembourg is a member state of the European Union.
• The threshold of €150,000 This applies to all your contracts, regardless of where the insurer is based.
• Upon death, The levy under Article 990 I also targets "organizations of the same nature that are not established in France".

The difference lies in the procedure. With an EEA insurer established outside France, you are responsible for filing and paying the claim, using form 2778, within the first 15 days of the month following receipt of payment. An exception is made if you have a mandate given to a paying institution established within the EEA.

Numerical example (fictitious profile)

Situation. A fictitious single person, a French tax resident, has two contracts over 8 years old, with premiums paid after September 27, 2017, totaling less than €150,000: one with a French insurer, the other with a Luxembourg insurer whose services are provided in France under the Freedom to Provide Services (LPS) regime. They are considering a redemption of €30,000 worth of products from one or the other.

Issue. She believes that a "foreign" contract is taxed differently than a French contract.

Strategy. Apply the common rule: 7.5 % after a deduction of €4,600, the Luxembourg insurer being established in the European Union like the French insurer. Then distinguish the procedure: payment by the insurer or personal declaration.

Result. Income tax on the redemption: (30,000 − 4,600) × 7.5 % = €1,905, with either contract. The difference lies in the procedure, not the amount: with the Luxembourg insurer, the insurer declares and pays the tax. This amount is before social security contributions, which are discussed on another page.

Calculation: 30,000 − 4,600 = 25,400; 25,400 × 7.5 % = 1,905. The two contracts, the premiums paid after 27/09/2017, the premiums under €150,000 and the €30,000 of products are assumptions of the fictitious profile.

What changes depending on your situation

• The system under which the insurer operates in France (LPS or branch).
• The contract age and the total of your premiums. They determine the rate of 7.5 % or 12.8 %.
• Your family situation. She decides on the tax reduction of €4,600 or €9,200.

These points are examined on a case-by-case basis. No result is guaranteed in advance.