In summary…
Yes, you can keep your French life insurance policy when leaving France: the tax authorities specifically provide for the case of a policyholder domiciled outside France. What changes is the tax on the gains: 12.8% retained for premiums paid since September 27, 2017 (7.5 % after 8 years upon claim, up to a limit of €150,000 of premiums paid), no annual allowance, but no social security contributions. What depends on the contract is how your insurer handles a policyholder who lives abroad: this must be requested in writing, contract by contract.
To determine who to consult: a wealth management advisor for the contract and its allocation (keeping, redeeming, or transferring), a notary for the beneficiary clause and inheritance, and a tax advisor in the host country for local tax filing. Balmont Conseil is a firm not independent In regulatory terms: he receives commissions on the contracts signed.
A Lyon-based executive is leaving the country in three months and has a French life insurance policy opened ten years ago. A withdrawal before his departure doesn't cost the same as a withdrawal afterward, and his beneficiary clause, written when he lived in Lyon, may no longer be relevant. Here are the points to check, in order.
1. Keeping the contract: what changes regarding taxes upon departure
Gains are taxed differently when the holder is domiciled outside of France.
For a resident, the tax on gains from a redemption depends on the contract's age and the date of the payments. An annual allowance of €4,600 (€9,200 for a couple) applies to contracts of at least 8 years, and the gains are subject to 17.2% social security contributions. For a person domiciled outside France, the tax authorities apply a different mechanism: a mandatory flat-rate levy on the products and gains from disposal.
| What we are comparing | Tax resident in France | Resident outside of France |
|---|---|---|
| Earnings related to bonuses paid since September 27, 2017 | 12.8 % before 8 years; 7.5 % after 8 years up to a limit of €150,000 of non-refundable premiums (all contracts), 12.8 % for the portion not covered by this rate. | 12.8 % retained; 7.5 % after 8 years, upon request, up to a limit of €150,000 of premiums paid on contracts with insurers established in France |
| Annual allowance of €4,600 / €9,200 (contract of 8 years or more) | Yes | No: it is reserved for taxpayers domiciled in France |
| Social security contributions on life insurance | 17.2% | Not subject to change (Service-Public record verified on June 30, 2026) |
| Earnings related to bonuses paid before September 27, 2017 | 15 % or scale before age 8; 7.5 % or scale after age 8 | 45 %, 35 %, 25 %, 15 % or 7.5 % depending on the duration and date of subscription of the contract |
| Holder domiciled in a non-cooperative state or territory | Not applicable | 75 % on the contract products |
Specifically. On €10,000 of gains linked to premiums paid after 2017, a policyholder residing outside France is subject to a levy of €1,280 (12.8% of the % tax) and no social security contributions. If the contract is more than 8 years old, this levy is reduced to €750 (7.5% of the % tax) after a claim, up to a limit of €150,000 in premiums paid. A resident, on the same €10,000, would have incurred €1,720 in social security contributions (17.2% of the % tax) in addition to their income tax. A withdrawal is therefore calculated both before and after departure, on your contract, with the date of each payment.
Two limitations. Tax treaties between France and the host country may alter this result: the BOFiP (French Official Tax Bulletin) reserves their application for non-residents, and they must be interpreted on a country-by-country basis. Furthermore, if your host country is on the list of non-cooperative states and territories, the 75% % rate replaces everything mentioned above: the list must be checked before any redemption. See also the purchase from abroad and what to do with your life insurance policy when leaving.
For the technician. Withholding tax applicable to non-residents: Article 125-0 A, II bis of the French General Tax Code (CGI), as cited by the French Official Tax Bulletin (BOI-RPPM-RCM-30-10-20-10, which deals with persons domiciled outside France; rate of 12.8% for premiums paid from September 27, 2017). Allowance reserved for taxpayers domiciled in France: BOI-RPPM-RCM-20-10-20-50, § 240. Rates of 45% to 7.5% for prior premiums and a withholding tax of 75% for non-cooperative states: instructions for the 2023 income tax return, chapter "Income from movable capital".
2. Beneficiary clause and inheritance: what to review before leaving
The beneficiary clause can be modified at any time until death, unless the beneficiary has already accepted their designation: in that case, their agreement is required. The modification is made by addendum or by will, with an acknowledgement of receipt kept. ABE Infoservice advises reviewing the clause after a change in circumstances and designating identifiable beneficiaries (surname, given names, date of birth, address), with a secondary beneficiary. Moving abroad constitutes a change in circumstances. See draft and modify the beneficiary clause.
Upon death, the capital paid to the beneficiary is taxed according to the age at which the premiums were paid.
| Bonuses paid | What the administration is planning (page dated September 17, 2026) |
|---|---|
| Before age 70 | A tax allowance of €152,500 per beneficiary, across all contracts; beyond that, a levy of 20% up to €700,000, then 31.25%. |
| After 70 years | Inheritance tax is levied on the portion of premiums exceeding €30,500 (a single allowance applies to all the deceased's contracts); capitalized gains are not taxed. |
This levy applies depending on the place of residence. It is due if YOU are domiciled in France at the time of death, or if the beneficiary is domiciled in France at the time of death and has been domiciled there for at least six of the ten preceding years (BOFiP, BOI-TCAS-AUT-60, § 100). Domicile at the time of subscription is irrelevant (§ 110). If you live abroad and your beneficiary is not domiciled in France, these conditions are not met: the matter must be settled with a notary, taking into account the law applicable to your estate (Which law applies to the inheritance of an expatriate?).
3. Remote management: ask questions, don't assume
The options for making deposits, transfers, or withdrawals from abroad depend on your contract and your insurer. We do not provide a general rule: these vary depending on the individual contract. Request these details in writing before your departure.
- Will my contract still be open for deposits and transfers if my address is abroad? In which countries are these excluded?
- What documents does the insurer require to register my change of address and tax domicile?
- How do I make a redemption from abroad, and how long does it take for the capital to arrive?
- What deduction will the insurer apply to my earnings, using which form, and from what date?
The deduction for section 1 depends on your tax residence: inform the insurer. in writing and keep the copy. For tax purposes in your new country, your local tax advisor will explain how the contract is treated there.
4. The Luxembourg contract alternative
A Luxembourg life insurance contract can be compared to an existing French contract, especially if you are settling in for several years in a country where you want to manage your finances remotely. As of July 1, 2025, according to the Luxembourg Insurance Commission, 27 Luxembourg life insurance companies were operating in France under the freedom to provide services, with 5 per establishment. The choice is vast: you should therefore start by considering your country of residence, not the specific product.
The firm receives entry fees on these contracts. 0.5% We state this before making any proposal. We do not advise you to buy out a French contract in order to subscribe to a Luxembourg one based solely on a sales pitch: the buyout of the French contract triggers the taxation of gains described in section 1. A fair comparison requires... Comparison of Luxembourg vs. French contracts for an expatriate.
5. Who to consult, and for what purpose?
| Interlocutor | What it deals with |
|---|---|
| Wealth Management Advisor | Keeping, buying back or transferring; support; coordination with other professionals |
| Notary | Beneficiary clause related to wills, inheritance, and matrimonial property regimes |
| International Law Attorney | Applicable law, conflict between two countries, international taxation |
| Insurer | Conditions for remote management, documents, forms |
| Tax advisor for the host country | Declaration of the contract and winnings in your new country |
The role of each party in an international matter is detailed in Notary, lawyer, accountant, and consultant: who does what?. The firm works with a network of international notaries, lawyers and accountants; the review of your existing contracts is free, in Lyon or via videoconference.
Our position
Don't surrender your policy simply because you're leaving, and don't keep it by default. Keep it if the insurer confirms in writing that they manage it remotely and if the tax on gains remains transparent to you; otherwise, compare it with another policy before surrendering. In any case, update the beneficiary clause before leaving. An advisor who tells you to "keep" or "surrender" without having checked the date of each of your payments isn't answering your question.
Frequently asked questions
Do I need to inform my insurer that I am leaving France?
Yes, in writing: the tax on your earnings depends on your tax residence. Keep the acknowledgment of receipt.
Will my beneficiary pay taxes if I am living abroad at the time of my death?
The tax on the inherited capital applies if you are domiciled in France at the time of death, or if the beneficiary is and has been domiciled in France for at least six of the ten preceding years. In other cases, the notary will examine the situation in light of the law applicable to the estate.
Is a Luxembourg contract more suitable for an expatriate?
This depends on your country of residence and the contract. It is compared to your existing French contract, including fees and remote management, and not to an average. Our firm charges an entry fee of 0.5 % on these contracts.
Are you leaving soon and do you have a French life insurance policy?
The first exchange is free, in Lyon or via videoconference: bring the date and amount of your payments, your beneficiary clause and the country you are leaving for, and we will tell you if there is anything to be done.
Book an appointment
The initial consultation is to establish your exact situation and determine if there is anything that can be done—sometimes there is nothing, and we will say so as well. Thirty minutes, with no obligation.
Book an exchange with Balmont Conseil
Alexis Sagnier, financial and real estate investment advisor, insurance broker, AMF certified. ORIAS 13003497. Updated on 24/10/2026.
Official sources consulted
- Service-Public.fr — Life insurance: taxation of income (fact sheet F22414, verified on April 15, 2026)
- Service-Public.fr — Social security contributions on income from assets and investments (fact sheet F2329, verified on June 30, 2026)
- Service-Public.fr — Can the beneficiary clause be modified? (fact sheet F2386, verified on September 25, 2026)
- economie.gouv.fr — What are the tax implications of assurance-vie? (September 17, 2026)
- impots.gouv.fr — Practical guide, 2023 income: income from movable capital, life insurance and persons domiciled outside France
- BOFiP — BOI-RPPM-RCM-20-15: Rules for the taxation of income from movable capital (version of 21/06/2021)
- BOFiP — BOI-RPPM-RCM-30-10-20: Flat-rate levies, case of non-residents (version of 20/12/2019)
- BOFiP — BOI-RPPM-RCM-20-10-20-50: proceeds from bonds or capitalisation and life insurance contracts (version of 30/06/2022)
- BOFiP — BOI-TCAS-AUT-60: levy on sums paid upon the death of the insured (version of 30/03/2023)
- ABE Infoservice — What do you need to know about the beneficiary clause?
- Insurance Commission (Luxembourg) — Annual Report 2024-2025, annexes, tables 2.7 and 2.8 (situation as of 1 July 2025), document in English, not linked here
