In summary…
A Luxembourg life insurance contract may be suitable for an agent of the Union, provided that five questions are answered before signing: what is my tax residence, how are the contract and associated accounts declared, what does the notice actually say, how do I fund the contract, and how do I get out of it when my situation changes.
A colleague praised their Luxembourg contract. An advisor is offering you one. For an EU agent, the contract isn't the starting point: the starting point is your tax residence.
Here are the five questions we ask, in order.
1. What is my tax residence?
This is the first question because it governs everything else. An agent who maintains their domicile in France by virtue of Article 13 of Protocol No. 7 is taxed as a person domiciled in France on their investments. See the article on tax domicile. The Luxembourg contract does not change this domicile; it is declared and enforced according to it.
2. How are the contract and associated accounts declared?
Individuals who are tax residents of France must declare their foreign bank accounts with their annual tax return, under penalty of a fine of €1,500 or €10,000 per account depending on the country concerned (service-public.gouv.fr). The treatment of a life insurance policy taken out abroad is verified on a policy-by-policy basis. See declare your income and accounts. Ask the insurer what documents they provide you each year for your tax return.
3. What does the instruction manual say?
Read the contract information sheet before signing, not the sales brochure. Check the investment options offered, the redemption and transfer conditions, the beneficiary designations, and the applicable law. We never copy figures from a brochure: we read the contract document.
4. How to fund the contract?
A cash payment is straightforward. If you plan to transfer existing securities into the contract, request written confirmation of how the transaction is handled: it may be considered a sale of those securities. Obtain confirmation before proceeding.
5. How do I get out of this situation when it changes?
Retirement, return to France, departure to another country: the contract must remain valid. Check the exit conditions as soon as you subscribe. The case of returning to France is detailed in This article is about foreign life insurance upon return.
6. Fictional example: Pierre is hesitating between two contracts
Situation. Pierre, a French national employed by the European Union and based in Luxembourg, is considering a payment of €150,000 into a Luxembourg contract. These figures are fictitious.
Issue. Two contract proposals, presented with different brochures. Neither answers the question of his tax residence.
Strategy. He asks the five questions above, in writing, to each insurer, and demands the complete information sheet.
Result. Five written responses per contract, compared line by line, before any payment.
This is an illustrative example; it does not reflect the situation of any particular client.
Frequently asked questions
Is a Luxembourg contract mandatory for an agent of the Union?
No. It can be adapted, but the choice is made after the five questions, not before. Our page Luxembourg assurance-vie details how it works.
Can I keep my contract if I return to France?
Yes, subject to the rules for reporting and taxation upon return. See the article about returning to France.
Can my spouse be a co-subscriber?
It depends on the contract and the couple's situation. See the article about the spouse.
Are you comparing Luxembourg contracts?
We read the information leaflets with you, we ask the insurers the five questions and we provide you with the written comparison.
Are you a tax lawyer, notary, or chartered accountant, and do some of your clients work for a European institution? We can work in partnership on the investment and life insurance aspects, in conjunction with your tax analysis.
Book an appointment
A 30-minute exchange is enough to lay out your situation. Book a time slot.
Alexis Sagnier, financial and real estate investment advisor, insurance broker, AMF certified. ORIAS 13003497. Updated on 27/10/2026.
