INVESTMENT OPTIONS IN FRANCE

There are a number of savings accounts in France which offer steady if unspectacular rates of return but can nestle alongside your current accounts as rainy day money. These have limits per account and is always something we build into our planning so that you have readily accessible cash in times of need.

For those planning to live in France permanently, longer term solutions with added benefits are also very attractive. Certainly, making a comparison to products held in your home country can be quite an eye opener.

The Assurance Vie is indeed an investment but with amazing additional tax benefits. You can have it in joint or sole names; so this is great for keeping control over funds during your lifetime before passing the remaining funds to loved ones.

◾ Funds grow free from personal tax until required and then withdrawals are treated kindly with only the profit part of each withdrawal being taxed. This is known as gross roll up.

◾ You can take regular income or ad hoc withdrawals making your funds accessible when you wish.

◾ You can name beneficiaries on the policy and regardless of their relationship to you, they can benefit from €152,500 each before inheritance tax is levied providing you are under 70 when the policy is started. This is a great benefit for those with distant relations or step-children.

◾ After an 8-year period you can benefit from €4,600 pa each of profit, income tax free.

◾ Administration is straightforward and the provider looks after tax reporting and provides the relevant paperwork.

◾ Investments inside the policy can be held in different currencies so you don’t have to necessarily change currencies when you move to France.

◾ Risk levels of the policy can vary according to your investment outlook No maximum premium but minimums can apply depending on product provider.

Using an Assurance Vie is a great planning tool not only to help with investment and income planning, but also being mindful of inheritance rules. It’s a great fit for those who want control over their assets with a minimal amount of tax, but also flexibility to choose when to take income.