The advantages of a unitised life insurance policy

issued in Luxembourg

 

Text version of the animated infographic:

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 a broad class of assets
•    Tax neutrality

 

French resident

•    Optimisation of transfer and estate duty, particularly if taken out 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 estate duty
•    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 redemptions: no capital gains tax 
•    Taxation of profitable redemptions after 5 and 8 years

 

Italian residents

•    No inheritance tax
•    In the absence of redemptions: no capital gains tax 
•    life insurance policies not attachable 
•    Free nomination of Beneficiaries

 

Spanish residents

•    In the absence of redemptions: 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 redemptions: 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

 

English residents

•    No declaration until the moment of the taxable event
•    Ability to buy back invested capital for 20 years or more, without a tax return
•    Possibility of a gift without tax on capital gains; the establishment of a PET (potentially exempt transfer - exempt from estate duty in the United Kingdom if the donor survives seven years after the gift)

 

Polish residents

•    No inheritance tax whatever of the degree of kinship of the Beneficiaries
•    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
•    Possibility of withdrawals without tax consequences
•    Tax relief for dividends

 

Swedish residents

•    No tax on income from capital or capital gains, no tax on withdrawals
•    No tax on inheritance or bequests from close relatives

 

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