Assurance-vie, PER, capitalisation contract: what they bring you, what they cost you.

Rarely. A contract older than eight years is considered valid only by its date: on withdrawals, there is a tax allowance of €4,600 per year for a single person and €9,200 for a couple (Article 125-0 A of the French General Tax Code). Closing it resets this allowance.

The key question, therefore, is quantifiable: what does the contract cost each year in fees, compared to its historical value? Often, the old contract is kept without further contributions, fees are reduced by switching investment vehicles, and new payments are allocated elsewhere. A transfer to another contract with the same insurer even preserves the contract's historical value (PACTE law of May 22, 2019).

It all depends on your tax bracket. A payment into a PER is deductible from taxable income, up to a limit of 10 % of professional income (article 163 quatervicies of the CGI): €10,000 paid into a 41 % bracket saves €4,100 of tax from the following year.

In return, the savings are locked until retirement, except in cases of early withdrawal, and are taxed upon withdrawal. Assurance-vie does not deduct anything, but remains accessible. From a 30% tax bracket (%), the PER (Retirement Savings Plan) often takes precedence; below that, assurance-vie.

The contract remains in effect: there is nothing to close initially. What changes are the rules of the destination country and those of the insurer. Some French insurers refuse new contributions or transfers from certain countries; the taxation of withdrawals then depends on the tax treaty between France and your country of residence; failing that, France withholds a levy of 7.5% or 12.8% on the gains (Article 125-0 A of the French General Tax Code).

Social security contributions, however, are generally no longer due on the income of a non-resident. Before leaving, a Luxembourg contract, designed to follow its policyholder from one country to another, is worth considering.

Three layers of fees are added: contract management fees (often 0.5 to 1 % per year), fees specific to each unit-linked investment (often 1 to 2 %), and sometimes custody fees or arbitrage fees.

The annual statement must show the contract's and each investment vehicle's fees (Article L. 132-22 of the French Insurance Code), rarely their amount in euros. On €200,000, 1.5% of the fees charged per year represents €3,000 annually. The service analyzes your statement and provides this figure, contract by contract.