The advantages of a unit-linked life insurance policy

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The advantages of unit-linked life insurance policy taken out in Luxembourg

The unit-linked life insurance policy taken out in Luxembourg combines the advantages of Luxembourg prudential law with the specific civil and tax characteristics of the policyholder's country of residence. Here is a non-exhaustive list of the different characteristics of this contract, in some of the countries of the European Union depending on the tax residence of the policyholder.

Luxembourg

• Super privilege
• Application of Luxembourg prudential law 
• Mobility
• Access to investment in a broad class of assets
• Tax neutrality

French resident

• Optimization of transfer and inheritance tax, particularly when the premiums are paid before the 70th birthday of the insured
• Free nomination of beneficiaries 
• Privileged tool for the management and transferring of wealth
• In the absence of redemptions: no capital gains tax 

Belgian residents 

• Optimisation of estate duty using wealth planning
• No withholding tax in the event of redemptions 
• Free nomination of Beneficiaries
• Transfer of assets with the ability to retain a power of control

Portuguese residents

• Inheritance planning tool enabling the transfer of wealth without inheritance tax
• Subscription by multiple policyholders and on the lives of multiple policyholders with a last-to-die benefit payment
• Free nomination of Beneficiaries 
• In the absence of surrenders : no capital gains tax
• Advantageous tax treatment on surrenders after 5 and 8 years

Italian residents

• No inheritance tax
• In the absence of surrenders: no capital gains tax 
• Life insurance policies not attachable 
• Free nomination of beneficiaries

Spanish residents

• In the absence of surrenders: no capital gains tax 
• Planning and inheritance optimisation tool
• Possibility of benefiting from an exemption from ISF, on certain conditions
• Free nomination of Beneficiaries

German residents 

• No tax on premiums
• In the absence of surrenders: no capital gains tax 
• Beneficial taxation if the term of the policy is longer than 12 years and the minimum age of the Beneficiary is 62
• Exemption of 15% of capital gains from 1 January 2018 if they come from investment funds
• No capital gains tax if the Subscriber to the policy is the beneficiary

Polish residents

• The benefit of the insurance contract is not included in the inheritance estate
• The life insurance policy is not included in the reserved portion
• Partial surrender below the amount of the premium exempt from capital gains tax

Finnish residents 

• Deferral of income tax and capital gains
• No tax on premiums
• In the absence of surrenders from the policy, no capital gains tax
• No declaration needed by the policyholder until a taxable event
• Free nomination of beneficiaries
• Planning and inheritance optimisation tool
• Tax relief for dividends

Swedish residents

• No tax on inheritance or gifts from close relatives
• No tax on premiums
• Free nomination of beneficiaries
• Planning and inheritance optimisation tool
• Possibility for the policyholder to actively participate in the investment decisions