HELPLINE: 
A flexible savings wrapper with powerful estate-planning advantages
What it is. The contrat de capitalisation is a long-term savings wrapper that mirrors the structure and tax treatment of an assurance vie, only the consequences in the event of death are different.
Available in France and Luxembourg, it offers unlimited contributions, open-ended duration and full access to capital at any time.
The details. Savings can be invested into euro funds, unit-linked assets (UCITS, ETFs, SICAVs, OEICs), or a blend of both. Like an assurance vie, gains grow tax-deferred, with taxation applying only on the interest portion when withdrawals are made. For S1 holders, only the 7.5% solidarity tax applies.
Unlike assurance vie, it can be gifted during your lifetime often using donations démembrés (usufruct and bare ownership), allowing parents to retain income while transferring ownership to children upon death with no inheritance tax due.
Luxembourg versions offer additional advantages, including fee caps (1.5% per year) and robust regulatory protection.
Conclusion. For France-based investors seeking lifetime access to capital combined with a tax-efficient succession strategy, the contrat de capitalisation offers a uniquely adaptable solution.