Choosing the right Assurance Vie is one of the most important financial decisions an expat can make when living in France. Assurance vie explained: it is a comprehensive French investment and insurance product that offers tax benefits, flexibility, and estate planning advantages, making it especially valuable for expats in France. Whether you are relocating for work, retiring in France or simply looking for a flexible cross-border investment solution, an Assurance Vie offers long-term tax benefits, estate planning advantages and broad investment access. Yet with so many providers and policy types available, it can feel overwhelming to know where to begin.

This blog post breaks down how to pick the right Assurance Vie for expats, how this life insurance product serves as a key financial product for expats, how it works in France, the risks to consider, and what features to prioritise so you select a plan that genuinely suits the needs of expats in France.

Introduction to Assurance Vie

For expats living in France, understanding the ins and outs of Assurance Vie is essential for effective financial planning. This unique financial product combines the potential for investment growth with life insurance coverage, all within a highly tax-efficient structure. One of the key benefits of Assurance Vie is its ability to help you grow your wealth while minimizing your tax liability, making it a cornerstone of financial strategies for those living in France.

Assurance Vie stands out for its tax advantages, offering preferential treatment on investment gains and withdrawals, especially after the policy has been held for a certain period. In addition to its tax efficiency, Assurance Vie provides valuable life insurance protection, ensuring that your loved ones are financially secure. For expats, this means you can build a robust financial portfolio that not only supports your long-term goals but also offers peace of mind through comprehensive life insurance coverage. By leveraging the key benefits of Assurance Vie, expats can optimize their financial planning and make the most of their time in France.

Understanding Assurance Vie as an Expat

An Assurance Vie is a long-term investment and life insurance contract widely used by residents in France. Assurance Vie is especially popular among French residents and French tax residents for its tax and estate planning benefits. It allows you to invest in a range of assets, from cautious euro funds to global multi-asset portfolios, while benefiting from favourable tax treatment over time.

For expats, an Assurance Vie can be especially useful because:

• It provides a tax-efficient investment wrapper as a French resident
• It can hold multiple currencies depending on the provider
• It offers flexibility for withdrawals after the first eight years
• It is one of the most powerful inheritance planning tools available in France

Assurance vie policies are subject to specific rules depending on the policyholder’s residency status.

However, not all Assurance Vie contracts are equal. Some are designed for French nationals with limited investment flexibility, while others are specifically created for international clients with broader fund access and clearer cross-border reporting.

How Assurance Vie Works

Assurance Vie policies are designed to help you invest in a tax efficient manner while offering flexibility to suit your personal circumstances and financial goals. When you open an Assurance Vie, you can choose from a variety of investment strategies, ranging from conservative euro funds to more dynamic options, depending on your risk tolerance. You have the option to fund your policy with a lump sum or through regular premiums, giving you control over how you build your investment.

One of the main attractions of Assurance Vie is the way investment gains are taxed. If you hold your policy for at least eight years, you benefit from an annual income tax allowance and reduced tax rates on withdrawals, making it a highly tax efficient vehicle for long-term savings. Only the gain element of any withdrawal is subject to income tax, and you can take advantage of the annual tax free allowance to further reduce your tax liability. Withdrawals can be made at any time, but accessing your funds before the eight-year mark may result in higher tax rates on your investment gains.

To ensure you maximize the tax benefits and select the right investment options, it’s wise to consult a financial adviser who understands both the French tax system and the needs of expats. They can help you tailor your Assurance Vie policy to your unique situation, ensuring compliance with French tax regulations and helping you achieve your financial objectives in the most tax efficient manner possible.

Key Factors to Consider When Choosing an Assurance Vie Provider

1. Investment options and fund access

One of the most important questions is what can you invest in.

Some French retail providers only offer a narrow range of funds or euro-denominated products, which may not suit expats with existing portfolios or global investment needs.

An international Assurance Vie typically offers:

• Multi-currency investment, including options to invest in US Dollars for international diversification
• Access to global funds and ETFs
• Flexible risk profiles
• Transparent pricing
• The ability to tailor your investment strategy to align with your financial goals
• Options to adjust your risk appetite, allowing you to select investments that match your personal risk tolerance

Ask the provider which funds are available, what the annual management charges are, and whether you can switch funds at any time.

2. Fees and transparency

Assurance Vie fees vary widely between providers. When comparing your options, check:

• Entry fees
• Annual contract charges
• Fund charges
• Exit penalties
• Adviser fees

High fees eat into long-term performance. Transparent providers outline all charges clearly in writing before the policy is set up.

3. Tax efficiency and the 8-year rule

One of the biggest advantages of Assurance Vie is its tax treatment after eight years. The tax rate and income tax rate applied to withdrawals depend on the policy duration and the amount withdrawn. Only taxable gains and capital gains are subject to tax, and tax allowances help minimize the tax burden on these gains. Withdrawals benefit from reduced taxation and an annual tax allowance. Assurance Vie offers tax deferred growth, meaning investment growth is not taxed annually but only when you make a withdrawal, allowing for greater compound growth. This preferential tax treatment and the key tax advantages of Assurance Vie make it especially attractive for expats and those seeking efficient estate planning. If you are planning long-term residency in France, choosing a policy with strong long-term investment options is essential.

Additionally, consider how the Assurance Vie is treated for inheritance purposes. Many policies allow you to nominate beneficiaries directly and provide tax advantages for assets passed through the policy.

4. Suitability for expats and cross-border considerations

Not every Assurance Vie is designed for those who have assets in multiple countries or may relocate again. Some questions to ask include:

• Does the provider allow non-French nationals to hold the policy?
• What happens if you move abroad in the future?
• Can the provider assist with withholding taxes and tax residency issues if you move abroad?
• Does the provider issue English-language statements and reporting?
• Is the policy recognised for international tax reporting?

A contract built specifically for international clients is usually the best option for expats.

5. Provider stability and reputation

An Assurance Vie is a long-term investment so choosing a reputable provider is essential. Look at the financial strength of the company, its track record, and reviews from expat clients.

Working with a regulated financial adviser can help you assess which companies are reliable and avoid providers with hidden conditions or restrictive fund choices.

Estate Planning for Expats

For expats with significant assets or complex family arrangements, estate planning is a crucial part of financial planning, and Assurance Vie can be a powerful tool in this process. One of the standout features of Assurance Vie policies is their ability to deliver inheritance tax benefits, allowing you to pass on your wealth to your chosen beneficiaries in a tax efficient manner. French inheritance tax can be substantial, but with the right Assurance Vie policy, you can significantly reduce the tax burden on your estate.

By naming beneficiaries directly within your Assurance Vie contract, you ensure that your assets are transferred efficiently and often outside the scope of standard French inheritance tax rules. This means your loved ones can receive a larger portion of your estate, with less lost to taxes. The structure of Assurance Vie policies allows for flexibility in estate planning, making it easier to adapt to changes in your personal circumstances or family situation.

A well-structured Assurance Vie policy not only provides tax benefits but also peace of mind, knowing that your estate is organized and your beneficiaries are protected. For expats, this level of control and tax efficiency is invaluable, helping you safeguard your legacy and support your family’s future financial security.

Who is an Assurance Vie Suitable For?

An Assurance Vie is suitable for a wide range of expats, including:

• Those moving to France who want a tax-efficient long-term investment
• Retirees looking to manage withdrawals in a flexible manner
• Expats with assets in multiple countries who need a compliant wrapper
• Individuals seeking to reduce French inheritance taxes for beneficiaries
• People wanting to invest in multiple currencies
• Individuals with significant capital seeking estate planning benefits and inheritance tax efficiency

It may not be ideal for very short-term savings or for people who expect to relocate again quickly unless the contract clearly allows continuation abroad.

Can You Have Multiple Assurance Vie Accounts?

Yes, expats can hold more than one Assurance Vie. Many people open:

• One policy for long-term investment
• A second policy for medium-term withdrawals
• A third policy for inheritance planning with named beneficiaries

Holding multiple policies can offer tax planning advantages because allowances apply per policy. However, managing several contracts can become administratively complex, so most expats prefer to keep things simple unless a specific strategy requires multiple wrappers.

How to Decide Which Assurance Vie is Best For You

To choose the right policy, consider the following steps:

Please note that the information provided here is for general informational purposes only and should not be considered as investment research or investment advice. Expats are strongly encouraged to consult an independent adviser for personalized recommendations tailored to their individual circumstances.

Step 1: Clarify your goals

Are you investing for retirement, inheritance planning or medium-term income? Your goals determine whether you choose a euro fund, a balanced portfolio or global equities.

Step 2: Compare charges and investment options

Do not focus only on headline features. Look carefully at all fees and what you can invest in. The right provider should offer fair fees and broad fund choice.

Step 3: Understand tax and withdrawal rules

Your adviser should clearly explain the 8-year tax rule, how withdrawals are taxed and how beneficiary rules apply.

Step 4: Choose an expat-friendly provider

International providers are often better suited for foreign nationals living in France as they offer English-language support, flexible access and cross-border compliance.

Step 5: Work with a regulated adviser

A qualified financial adviser can help you select an Assurance Vie aligned with your long-term goals and provide ongoing management.

FAQs – How to Pick the Right Assurance Vie for Expats

Is an Assurance Vie a safe investment option?

Assurance Vie is regulated in France and offers access to cautious euro funds as well as diversified portfolios. Your level of risk depends on the investments you choose.

Can I withdraw money from my Assurance Vie early?

Yes, you can withdraw at any time, although the tax benefits increase after eight years.

Does an Assurance Vie cover life insurance?

Most policies include a life insurance element, often a small percentage of the invested capital.

What are the disadvantages?

Assurance Vie is not ideal for very short-term horizons. Charges vary between providers, so choosing the wrong provider can reduce returns.

Speak to an Expat Financial Adviser

Selecting the right Assurance Vie is an important step in building a strong financial plan in France. Harrison Brook specialises in helping expats choose the most suitable cross-border investment solutions with transparent fees and international expertise.

Book a free consultation to explore the right Assurance Vie for your situation.