Financial Investments

“It takes a great deal of boldness and a great deal of caution to make a great fortune; and when you have got it, it requires ten times as much wit to keep it”  Nathan Mayer Rothschild (1777 – 1836)

French Assurance Vie

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Contrat de Capitalisation

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Plan d’Épargne Retraite Populaire – PERP

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Bank Investments

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Luxembourg Assurance Vie

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Plan d’Epargne en Action – Equity Saving

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Madelin Law Self Employed Pension Plan

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QROPS

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Investment Planning

French Assurance Vie

Who can subscribe:
• French tax residents only
§ Including UK Expats permanently living in France
• French non-residents generally excluded
• US Person totally excluded

Possible memberships:
1. Single membership
2. Joint membership, only authorized if:
• the spouses are married under the universal community regime, in that case the policy will be unrevealed at the first death.
• the spouses are married under the universal community regime and with a clause providing full allocation of the community to the surviving spouse in that case the policy will be unrevealed at last death.

3. Split membership:
• the policy is split between the “bare property” owner and the “quasi usufruct” owner

Expected return: between 1 % (guaranteed “euro fund”) and 6 % in average. (allocation, and assets can vary according to investor profiles). Risk of capital loss.
Capital Guarantee: Yes, the “Euro Fund” a bond-based asset offers a guarantee of the capital invested, limited to French assurance vie policies
Average investment risk: From “no risk” to “dynamic”
Recommended holding period: 6 years minimum
Minimum amount of investment: 50 000 € (or 150 € / month)
Maximum amount of investment: no maximum

Availability:
• Practically immediate
§ 10 days minimum
§ According to Art. L 132-21 of the French “Code des Assurance” the insurer must release the funds within two months of the clients request by recorded delivery
• Partial or total withdrawals possible at any time.

Tax benefits: Income tax, Inheritance tax

Reasons to choose this investment :
• Investing for income
• Investing for growth
• Investing for income and growth
• Tax efficient investing

Investment Planning

Luxembourg Assurance Vie

Who can subscribe:
• French non-residents
• Luxembourg non-residents,
• UK expats & UK residents
• US Persons (under condition)
• Certain insurers only accept French tax residents,

Possible memberships:
1. Single membership
2. Joint membership,
• If you are French Tax Resident, you should only consider joint membership if you are married under the universal community regime with a clause providing full allocation of the community to the surviving spouse in that case the policy will be unrevealed at last death. We recommend you seek advice on this matter before doing so.

3. Split membership:
• the policy is split between the “bare property” owner and the “quasi usufruct” owner

Expected return: depending on the allocation, between 1 % and 10 % (risk of loss in capital)
Capital guarantee assets: Yes, the “Euro Fund” gives a 100% guarantee the capital invested. This “asset” is only available in French institutional Luxembourg assurance vie policies.
Average investment risk: From “no risk” to “extremely dynamic” (dedicated funds can be very dynamic)
Recommended holding period: 6 years minimum
Minimum amount of investment: 250 000 €
Maximum amount of investment: no maximum
Availability: Practically immediate (15 days min.)
Tax benefits: Income tax, Inheritance tax

Reasons to choose this investment :
• Investing for income
• Investing for growth
• Investing for income and growth
• Tax efficient investing

Investment Planning

Contrat de Capitalisation

Who can subscribe:
• French tax residents
• Non-residents (French expats)

Possible memberships:
1. Single membership
2. Split membership:
This policy is particularly suitable for split membership, which is an interesting French wealth management tool. For example, after selling split real estate the “bare property” and the “usufruct” owners, could reassign the funds to this policy, keeping them dismembered, mainly to avoid inheritance tax, as once property is split, based on article 669 of the French civil code, it is best to keep it that way. (it is however more frequent to encounter dismembered beneficiary clauses)

Expected return: depending on the allocation, between 1 % and 10 % (risk of loss in capital)
Capital guarantee assets: Yes, the “Euro Fund” gives a 100% guarantee the capital invested. This “asset” is only available in French institutional Luxembourg assurance vie policies. Average investment risk: From “no risk” to “extremely dynamic” (dedicated funds can be very dynamic)

Recommended holding period: 6 years minimum
Minimum amount of investment: 250 000 €
Maximum amount of investment: no maximum
Availability: Practically immediate (10 days min.)
Tax benefits: Income tax, Inheritance tax

Reasons to choose this solution:
• Investing for income
• Investing for growth
• Investing for income and growth
• Tax efficient investing

Specificities:
• This is not an insurance policy it therefor follows the French common right laws. (Code civil) not the code des assurances.
• It is not a “stipulation for another”, and thus does not hold its own beneficiary clause.
• Although identical in many ways, unlike assurance vie, a “Contract de capitalization” fully integrates the deceased’s succession and is liquidated like any other assets.

Investment Planning

Plan d’Épargne Retraite Populaire – PERP

Who can subscribe:
• French tax residents only
• French non-residents
• French expats
• Employees

Expected return: between 2,5 % and 6 %
Average investment risk: “No risk whatsoever” to “moderate”
Recommended holding period: Lifelong
Minimum amount of investment: no minimum
Maximum amount of investment: no maximum
Availability: 20% Lump sum upon retirement & lifelong annuities on the remaining 80% of the policy.
Tax benefits: Income tax

Reasons to choose this investment:
• Pension planning
• Tax efficient investing

Investment Planning

Madelin Law Self Employed Pension Plan

Who can subscribe:
• French tax residents only
• Self-employed only

Expected return: between 2,5 % and 6 %
Average investment risk: “No risk whatsoever” to “moderate”
Recommended holding period: Lifelong
Minimum amount of investment: no minimum
Maximum amount of investment: no maximum (depends on the company turn over)
Availability: Lifelong annuities only, no Lump Sum possible.
Tax benefits: Income tax

Reasons to choose this investment:
• Pension planning as a self-employed worker
• Tax efficient investing

Investment Planning

Plan d’Epargne en Action – Equity Saving Plan

Who can subscribe:
• French tax residents only

Possible memberships:
• Single membership

Expected return: depending on the allocation, between 1 % and 10 % (risk of loss in capital)
Capital guarantee assets: No, except some eligible “structured assets”
Average investment risk: From “medium risk” to “extremely dynamic”
Recommended holding period: 5 years
Minimum amount of investment: no minimum
Maximum amount of investment: 150 000 €
Tax benefits: Income tax

Reasons to choose this investment:
• Investing for income (tax free withdrawals upon the 5th year)
• Investing for growth
• Investing for income and growth
• Tax efficient investing (no income tax after year 5)

Investment Planning

Bank Investments – Livret A, LDD, PEL, CEL

Who can subscribe:
• French tax residents
• French non-residents (L.D.D excluded)

Expected return: 0,5% to 1% (state regulated policies and interest rates)
Capital guarantee assets: Yes, 100%
Average investment risk: No risk
Recommended holding period: 1 year
Minimum amount of investment: no minimum
Maximum amount of investment:
• Livret A : 22 950 € (0,75% interest rate)
• L.D.D : 12 000 € (0,75% interest rate)
• CEL : 15 300 € (0,5% interest rate)
• PEL : 61 200 € (1% interest rate for policies opened as from 2016 onwards)
Tax benefits: none

Reasons to choose this solution: Immediate Accessibility, saving accounts. One should at least open a Livret A, or a LDD, when arriving on French territory.

Investment Planning

QROPS, QNUPS, ISIIP’s

Who can subscribe:
• UK expats, living overseas
• UK tax residents planning to move abroad
• French tax residents

Expected return: between 2% and 10 % in average
Average investment risk: From “no risk” to “extremely dynamic” (risk of capital loss)
Recommended holding period: Up to age 55, or Lifelong according to objectives.
Minimum amount of investment: 30% PCLS as from age 55, and lifelong annuities or possible “Flexi access Draw down” which replaced “flexible drawdown” on 6 April 2015.
Tax benefits: depend on the DTA signed between the two countries involved, and your country of main residence

Reasons to choose this investment:
• Investing for income
• Investing for growth and income
• Tax efficient investing
• Gateway to access investments with more attractive benefits (mainly for French tax residents)

Investment Planning

We also provide:

ISIPP : International SIPP’s : Designed for British expatriates who still wish to keep their pension assets in the UK, rather than transfer to one of our overseas pension solutions. Our International SIPP provides more options and greater sophistication for British expats.

QNUPS : A Qualifying Non-UK Pension Scheme (QNUPS) is an overseas pension scheme in which cash and assets that are not eligible for UK tax relief can be contributed. QNUPS regulations were introduced by UK HM Revenue & Customs (HMRC) on 15th February 2010.