Redeeming a French life insurance policy when living abroad: 12.8 %, 7.5 % or 75 %

Have you left France and are redeeming a life insurance policy from an insurer established in France? The tax rate is 12.8%. According to the BOFiP (French Official Tax Bulletin), a rate of 7.5% is then obtained by requesting a refund, for a policy of 8 years or more, up to a limit of €150,000 in premiums. You do not pay social security contributions. The rate increases to 75% if you are established in a non-cooperative state or territory.

Two official sources, two descriptions

The administration describes this levy in two sources. They do not describe the mechanism in the same way. Here is what each says.

What the two sources have in common: the rate of 12.8 %, the rate of 7.5 % for a long contract, and the threshold of 8 years.

The point of disagreement is the method for arriving at 7.5 %. Direct application based on the duration in one case; a request for reimbursement of the excess, up to a limit, in the other. Therefore, we do not present 7.5 % as being applied automatically. The BOFiP (Official Bulletin of Public Finances) document consulted dates from December 20, 2019; a more recent version is possible.

Scope: contracts from insurers established in France

The BOFiP levy targets contracts taken out with insurance companies established in France, for the benefit of people who do not have a tax residence in France.

This page only deals with these contracts. The BOFiP (French Official Tax Bulletin) only covers contracts with insurers established in France, and the administration's page says nothing about how France handles a redemption from a contract with an insurer established elsewhere, held by a non-resident. Do not infer anything from this: this case is examined separately.

The rates, one by one

For bonuses paid since 27/09/2017:

• 12.8% : basic rate, which is final for income tax purposes according to the BOFiP; ;
• 7.5% : for a contract of 8 years and more, up to a limit of €150,000 in premiums, per reimbursement request according to the BOFiP.

A rate does not depend on the date of the premiums or the duration of the contract:

• 75% : for products paid to persons established in a non-cooperative state or territory. The figure of 75 % appears on the administration's page; the BOFiP applies this increased rate regardless of the date of the premiums and the duration of the contract, without giving the figure.

The rates of 12.80 % and 7.5 % are those in effect on 01/01/2026 according to the administration's page.

No social security contributions

Non-residents are not subject to social security contributions on their investment income. This is what distinguishes your situation from that of a resident. The social security contribution rate, which changed on January 1, 2026 for residents, therefore does not apply to you for this redemption.

The case of the non-cooperative state: 75 %

If the proceeds are paid to a person residing in a non-cooperative state or territory, the rate is fixed at 75 %, regardless of the contract's duration. Even if the contract is ten years old, this rate still applies.

This rate is checked before leaving or moving, not after the purchase: the list of states concerned is not reproduced on this page.

Three situations, three outcomes

None of these lines include social security contributions, which are not due.

Tax treaties

Tax treaties concluded by France may reduce the rate. The BOFiP (Official Bulletin of Public Finances) mentions this without providing details. The result depends on your country of residence and the applicable treaty: this is a point to be examined on a case-by-case basis.

Numerical example (fictitious profile)

Situation. A fictitious person, a tax resident outside of France and outside of any non-cooperative state, opened a contract with an insurer established in France in December 2017. They have paid €100,000 in premiums since then. They redeem the contract in October 2026: the proceeds from the redemption amount to €50,000.

Issue. She assumes that the 7.5% % rate applies automatically. She is unaware that the BOFiP (Official Bulletin of Public Finances) describes a 12.8% % levy, followed by a refund request.

Strategy. Check three points before redemption: the age of the contract (8 years and over), the premiums (€100,000, under the ceiling of €150,000) and the tax treaty of the country of residence.

Result. Withholding tax at 12.8% (%) on €50,000: €6,400. At 7.5% (%) after reimbursement: €3,750. Difference: €2,650. In the same scenario, but if the proceeds were paid to a person established in a non-cooperative state, the withholding tax would be €50,000 × 75% (%) = €37,500.

CALCULATION: 50,000 × 12.8 % = 6,400; 50,000 × 7.5 % = 3,750; 6,400 − 3,750 = 2,650; 50,000 × 75 % = 37,500. The €100,000 in bonuses, the €50,000 in products, and the opening date are assumptions of the fictitious profile.

What this page doesn't say

• It says nothing about a contract taken out with an insurer established outside of France.
• It does not reproduce the list of non-cooperative states and territories.
• It does not detail the refund request procedure.
• It does not quantify the effect of a tax treaty.

Each of these points requires an examination of your situation.

What changes depending on your situation

• Your country of residence. Non-cooperative state or tax treaty: both change the rate.
• The age of the contract and the amount of the premiums. They condition the 7.5 %.
• The insurer's place of establishment. This page only covers insurers established in France.
• The moment of departure. Your tax residency status determines the applicable tax regime.

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