In short…
Luxembourg life insurance gives a French tax resident no tax advantage they would not already have in France — that is exactly what most people miss. Its superiority is legal. Where the French guarantee is capped at €70,000 per insurer, the Triangle of Security protects all of your assets, with no limit, ranking ahead of the State itself as a priority creditor. Add to that an investment universe with no equivalent in the French market — multi-currency, dedicated funds, direct securities, private equity. A wrapper designed for wealth from roughly €250,000 upwards.
- Same taxation as French life insurance — €4,600 / €9,200 allowance after 8 years, 7.5% + 18.6%, €152,500 exempt per beneficiary
- Protection with no cap — Triangle of Security and Super Privilege, where the French guarantee stops at €70,000
- A broader universe — multi-currency, dedicated FID/FAS funds, direct securities and a Lombard loan to raise liquidity without divesting
Simulate your Luxembourg contract
Select your country of tax residence: because Luxembourg is neutral, it is your residence that determines the exit taxation. The projection applies it automatically. Your data is neither stored nor transmitted.
Luxembourg life insurance simulator
Project your Luxembourg contract and its taxation according to your country of residence — Luxembourg neutrality adapts to every jurisdiction.
Results are provided for purely illustrative and educational purposes, based on the parameters you enter and simplified assumptions (2026 taxation, constant return, excluding inflation). They constitute neither personalised investment advice, nor tax advice, nor an offer to subscribe. Some investments carry a risk of capital loss. Before any decision, speak with an advisor.
Why international families choose Luxembourg
The vast majority of savers hold their life insurance inside a domestic contract, distributed by their banking network, without ever questioning the legal strength of the wrapper that shelters their assets. As long as all is well, the question never arises. Yet it becomes central as soon as wealth reaches a size where the security of the asset matters as much as its performance.
Luxembourg applies the principle of tax neutrality: no tax of its own is levied on contracts taken out by non-residents. For a French tax resident, the Luxembourg contract is therefore taxed exactly like French life insurance — the same allowances after 8 years, the same 7.5% levy, the same €152,500 exempt per beneficiary on transmission. The benefit is not fiscal: it is patrimonial.
What truly sets the Luxembourg contract apart is the combination of unmatched asset protection and an open investment engine. If you move abroad one day, the contract follows your new residence and adapts to its taxation, with no break and no forced surrender. It is the reference wrapper for mobile, international and substantial wealth.
The 3 strengths your domestic banker cannot offer you
Strength 1 — the Triangle of Security, protection with no cap
In Luxembourg your assets are held by a custodian bank that is independent of the insurance company, under the supervision of the regulator (the Commissariat aux Assurances). Your assets are legally separated from the insurer’s balance sheet: should the insurer fail, they do not fall into the pool of creditors. Better still, the policyholder benefits from the Super Privilege, a first-rank creditor status that ranks ahead of the State. Where the French guarantee is capped at €70,000 per insurer, Luxembourg protection covers all of your assets, with no limit.
Strength 2 — an investment engine with no equivalent
The Luxembourg contract opens access to investments unavailable in a domestic contract: internal dedicated funds (FID) steered by the manager of your choice, specialised insurance funds (FAS), direct securities, bonds, private equity, and management in several currencies. It works naturally alongside a Lombard loan secured against the contract to generate liquidity without divesting.
Strength 3 — a wrapper that travels with you
Because Luxembourg is tax-neutral, the contract adapts to the rules of your country of residence. Move to Portugal, Dubai, Switzerland or the United Kingdom and the wrapper follows you, applying local taxation without being unwound. For an internationally mobile family, this continuity is priceless — and it is precisely what a domestic contract cannot provide.
Worked example — the Mercier family, relocating to Dubai
Paul and Claire Mercier, both 48, hold €600,000 in a French life-insurance contract. Planning a move to the United Arab Emirates within three years, they reallocate it into a Luxembourg contract before leaving. Here is what changes.
| Criterion | French contract | Luxembourg contract |
|---|---|---|
| Asset protection | Capped at €70,000 / insurer | All assets, no cap (Super Privilege) |
| Investment universe | Euro funds + domestic units | Multi-currency, FID/FAS, direct lines, private equity |
| Taxation once in Dubai | Withholding complexities | Neutral — no UAE tax on individuals |
| Liquidity without selling | Limited | Lombard loan secured on the contract |
Illustrative example — figures simplified for clarity and not contractual.
The fiscal outcome in Dubai is the same in both cases (no personal income tax), but the Luxembourg wrapper adds protection, a far wider investment universe and a structure that will travel with the Merciers to their next country. This is the difference between a product and a strategy.
Luxembourg tax neutrality, explained simply
Luxembourg levies no tax of its own on life-insurance contracts taken out by non-residents: this is the principle of tax neutrality. For a French tax resident the contract is therefore taxed exactly like French life insurance — the same allowances after 8 years, the same 7.5% levy, the same €152,500 exempt per beneficiary on transmission.
The benefit is therefore not fiscal: it is patrimonial. If you move abroad one day, the contract follows your new residence and adapts to its taxation, with no break and no forced surrender. It is the reference wrapper for international and mobile wealth.
The Triangle of Security: why it changes everything
In Luxembourg your assets are deposited with a custodian bank independent of the insurance company, under the supervision of the regulator. Your assets are legally separated from the insurer’s balance sheet: in the event of failure, they do not fall into the pool of creditors.
Better still, the policyholder benefits from the Super Privilege, a first-rank creditor status that ranks ahead of the State itself. Where the French guarantee is capped at €70,000 per insurer, Luxembourg protection covers all of your assets, with no limit.
An envelope to be structured, not simply bought
The Luxembourg contract rewards a tailored approach: a higher entry ticket (often €250,000 and above), a dedicated fund mandate to design, a currency strategy, and possibly a Lombard loan to arrange. This is exactly the kind of trade-off a wealth advisor structures with you — in open architecture, on your terms.
Run your projection above, then book a call: we will compare your current contract with a Luxembourg structure adapted to your country of residence, today and tomorrow.
Frequently asked questions
Does Luxembourg life insurance pay less tax than a French contract?
No — and that is the key point. For a French tax resident the taxation is identical to French life insurance. The advantage is legal protection and investment scope, not a lower tax bill.
What happens to my contract if I move abroad?
Because Luxembourg is tax-neutral, the contract adapts to the taxation of your new country of residence without being unwound. The simulator above lets you preview the exit taxation for nine countries.
What is the minimum amount to open one?
In practice a Luxembourg contract becomes relevant from roughly €250,000, the threshold at which dedicated funds and a multi-currency strategy add real value.
Is my money safe in Luxembourg?
Yes. The Triangle of Security segregates your assets from the insurer’s balance sheet, and the Super Privilege gives you first-rank creditor status with no cap — a level of protection unavailable in a French contract.
Results are provided for purely illustrative and educational purposes, based on the parameters you enter and simplified assumptions (2026 taxation, constant return, excluding inflation). They constitute neither personalised investment advice, nor tax advice, nor an offer to subscribe. Some investments carry a risk of capital loss. Before any decision, speak with an advisor.