Luxembourg assurance-vie simulator: capital, capital gains and security of the Triangle

Simulate your Luxembourg contract

Select your country of tax residence: Luxembourg is neutral and therefore determines the tax liability upon departure. The projection applies this automatically. Your data is neither stored nor transmitted.

Why international wealth sites choose Luxembourg

The vast majority of French savers hold their assurance-vie policies within a contract governed by French law, distributed through their bank, without ever questioning the legal soundness of the structure that protects their assets. As long as everything is going well, the question doesn't arise. However, it becomes crucial as soon as the portfolio reaches a size where the security of the asset matters as much as its performance.

Luxembourg applies the principle of tax neutrality: no specific tax is levied on contracts taken out by non-residents. For a French tax resident, the Luxembourg contract is therefore taxed exactly like a French assurance-vie policy—the same allowances after 8 years, the same 7.5% withholding tax, and the same €152,500 exemption per beneficiary upon inheritance. The advantage is not tax-related; it is related to wealth management.

What truly distinguishes the Luxembourg contract is its combination of unparalleled asset protection and an open investment engine. If you ever move abroad, the contract "follows" your new residence and adapts to its tax regime, without any interruption or forced redemption. It is the benchmark vehicle for substantial, mobile, international portfolios.

The 3 advantages your French banker cannot offer you

Advantage 1: The Safety Triangle, protection without a ceiling

In Luxembourg, your assets are deposited with an objective custodian bank for the insurance company, under the supervision of the Insurance Commission. Your assets are legally separate from the insurer's balance sheet: in the event of default, they do not fall into the hands of other creditors. Furthermore, the policyholder benefits from "Super Privilege," a first-order creditor status, taking priority over the State itself. Whereas the French guarantee is capped at €70,000 per insurer, Luxembourg's protection covers the’all assets, without limit. For assets worth six or seven figures, the safety margin is crucial.

Advantage 2: an investment universe that France does not allow

The Luxembourg contract provides access to investment vehicles unavailable in standard French offerings: dedicated internal funds (DIFs) managed by the asset manager of your choice, specialized insurance funds (SIFs), individual securities, direct bonds, private equity, and multi-currency management. For an executive or manager whose income or assets are partly in US dollars, Swiss francs, or pounds, the multi-currency aspect eliminates exchange rate risk. This structure is custom-built, asset by asset—the opposite of a network contract built on a handful of in-house funds.

Advantage 3: Lombard loan backing, liquidity without divestment

The Luxembourg contract naturally complements a Lombard loan: you pledge your contract as collateral to obtain a line of credit at a rate linked to the money markets, without selling your investments or interrupting their capitalization. This allows you to finance a real estate project, a reinvestment, or a cash flow need while letting your investment portfolio continue to grow—and without triggering the tax implications of a withdrawal. This is a classic lever of high-end wealth management, one that mass-market distribution contracts do not offer.

Case study: Sophie, 52 years old, holding company manager in Geneva

Sophie, currently a French tax resident but likely to relocate to Switzerland, invests €600,000 from sales and dividends in a Luxembourg multi-currency contract, plus €2,000 per month for 15 years, aiming for a net return of 4.5% after management fees. Here's what the simulator projects at maturity, after 8 years of holding, compared to a French network contract:

The €40,000 difference in capital comes from the controlled fees of an open-architecture contract, without any additional risk. But that's not the main point: for assets of this size, the French guarantee, capped at €70,000, covers only a symbolic fraction of the holdings, while the Triangle of Security protects them in full.

If Sophie moves to Switzerland, her contract follows her without forced redemption and adapts to the tax regulations of her new residence. This portability, combined with its multi-currency capability, makes the Luxembourg contract the natural vehicle for assets intended to cross borders.

Security is only valuable if it is properly architected.

This simulator provides a rough estimate of the capital and its French tax implications. The true value of a Luxembourg contract lies elsewhere: the choice of company and custodian bank, the structuring of dedicated funds, currency selection, integration with a Lombard loan, and its alignment with your current and future tax residency. A poorly structured Luxembourg contract is simply a more expensive assurance-vie policy; a well-structured one is an unparalleled tool for security and flexibility.

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any bank. This objectivity allows for a truly open architecture: we select Luxembourg companies and investment vehicles across the entire market, solely in your best interest. Let's make an appointment to determine if Luxembourg is relevant to your assets and to structure them correctly.

Frequently Asked Questions

Is a Luxembourg contract more tax-efficient than French assurance-vie?

No, and this is a crucial point to understand. For a French tax resident, the Luxembourg contract is taxable. exactly like a French assurance-vie policy A tax allowance of €4,600 (€9,200 for a couple) applies to capital gains redeemed after 8 years, a reduced levy of 7.5% (%) applies to the portion corresponding to premiums paid up to €150,000, social security contributions of 17.2% (%) are levied, and €152,500 is exempt per beneficiary upon inheritance. Luxembourg is fiscally neutral: your country of residence determines taxation. The advantage is legal and related to assets, not taxation.

What are the Safety Triangle and Super Privilege?

The Security Triangle refers to the legal separation between the insurance company, the custodian bank, and the regulator (the Insurance Commission). Your assets are held off the insurer's balance sheet, with an objective custodian: in the event of default, they do not fall into the hands of other creditors. The "Super Privilege" also grants you the status of a first-order creditor, taking priority over the State. As a result, protection covers all your assets, without limit, whereas the French guarantee is capped at €70,000 per insurer.

At what price level is a Luxembourg contract relevant?

The Luxembourg assurance-vie policy becomes truly advantageous starting at around €250,000, a threshold below which its benefits (dedicated funds, multi-currency coverage, unlimited protection) are less fully utilized due to higher fees and a higher initial investment. It is designed for substantial, international, or mobile assets: executives, expatriates or future expatriates, and holders of holding company cash reserves via the capitalization version. Below this threshold, a good French assurance-vie policy with an open architecture covers most needs.

What happens to my contract if I move abroad?

This is one of its major advantages. The Luxembourg contract "follows" your new tax residence: it is neither closed nor forcibly redeemed, and the tax laws of your host country apply. This portability avoids the disruption that a French law contract would often impose when moving abroad. For assets that will cross borders, this is a significant advantage—though it should be discussed with an advisor beforehand, as each host jurisdiction has its own rules.

How does Balmont Conseil differ from a bank advisor for a Luxembourg contract?

Balmont Conseil is an objective wealth management firm, a member of ANACOFI, with no capital ties to any bank. A banking advisor will guide you, in the best possible way, towards their group's Luxembourg-based contract, with its investment options and fees. Our objectivity allows us to select the Luxembourg company, the custodian bank, and the dedicated funds across the entire market, solely based on your interests—and to tailor the contract to your tax residency, holding company, and estate planning strategy.