Policies compliant with international rules for optimal cross-border management
Luxembourg life insurance policies are designed to comply with international legal and tax standards and thus offer the possibility of genuine cross-border management of policyholders’ assets.
Since the publication of the European Directive on the Freedom to Provide Services, a European policyholder can freely conclude their assurance policy in any country of the European Union. The Grand Duchy of Luxembourg has been a pioneer in the application of this directive and has become a centre of expertise in cross-border life insurance over the years.
This expertise is structured around three pillars:
- Compliance of policies with international rules
- Tax neutrality (no double taxation)
- Portability of the policy in the event of expatriation
Video transcript
Luxembourg life assurance
A financial instrument with manifold assets
#international
Policy compliance with international tax regulatory requirements
Under the principle of Freedom to Provide Services, insurers are permitted to operate in other EU countries without having to be established there.
Life assurance policyholders are therefore able to benefit from the advantages available in Luxembourg
- Triangle of Security
- Wide range of assets
- Policy portability
Luxembourg policies meet local regulations of the policyholder’s country of tax residence
Policyholder Insurer
Over the years, Luxembourg has become a centre of expertise in cross-border life assurance
Exchange of information and transparency
Luxembourg complies with international tax regulations and actively participates in the exchange of information and transparency between countries
- European Directive
- FATCA
- CRS
- DAC6
- Etc.
Luxembourg life assurance
Tailor-made wealth management solutions
Disclaimer: the content of this communication does not constitue any offer or solicitation for the purchase of any life assurance product. OneLife does not warrant, represent or guarantee that the information contained within this communication is complete, accurate or up-to-date at the time of distribution. Neither is this information intended to constitute any form of legal, fiscal or investment advice and the information provided in this communication or any other pre-contractual document should therefore be used only conjuncture with appropriate professional advice obtained from a suitable qualified independent and professional source. January 2023
Policies compliant with international investment rules
Luxembourg life insurance policies comply with the legal and tax obligations of the policyholder’s country of residence.
In addition, Luxembourg complies with international tax standards, and in particular international conventions relating to the exchange of information and tax transparency: Savings Directive, FATCA, CRS, DAC6, etc.
Video transcript
Luxembourg life assurance
A financial instrument with manifold assets
#international
Tax neutrality
Luxembourg life assurance policies are subject to the tax regime of the country of residence of : the policyholder, the beneficiaries
There is no taxation in Luxembourg for non-residents on
- The premiums paid or surrenders made by the policyholder
- Capital paid out by the insurer when the policy is terminated
The Luxembourg life assurance policy is therefore tax neutral
No double taxation : of the policyholder, of the beneficiaries
Luxembourg life assurance
Tailor-made wealth management solutions
Disclaimer: the content of this communication does not constitue any offer or solicitation for the purchase of any life assurance product. OneLife does not warrant, represent or guarantee that the information contained within this communication is complete, accurate or up-to-date at the time of distribution. Neither is this information intended to constitute any form of legal, fiscal or investment advice and the information provided in this communication or any other pre-contractual document should therefore be used only conjuncture with appropriate professional advice obtained from a suitable qualified independent and professional source. January 2023
True tax neutrality
Luxembourg life insurance policies are subject to taxation in the country of residence of the policyholder and the beneficiaries.
Non-Luxembourg residents are therefore not subject to any tax in Luxembourg, whether on premiums paid, surrenders made or capital paid by the insurer following the termination of the policy.
These provisions guarantee veritable tax neutrality for policyholders and beneficiaries: they are only taxed in their country of residence while benefitting from the international framework of Luxembourg policies, and in particular their portability in the event of international mobility.
Video transcript
Luxembourg life assurance
A financial instrument with manifold assets
#international
International mobility and portability
International mobility is constantly increasing: professional expatriation, retirement in a country with a milder climate…
It is essential to be able to guarantee
- Optimum wealth protection
- Compliance with regulations applicable in the various countries of tax residence
Luxembourg expertise
Luxembourg companies benefit from a vast international expertise guaranteeing policy portability in the event of a country of residence* change : for the policyholder, for the beneficiaries
*subject to the insurer’s approval
Expatriation may require the adaptation of certain characteristics of the policy
- Investment vehicles
- Asset allocation
- Death cover
- etc.
In the event of future expatriation already being known at the time of the policy application, these adaptations should ideally be anticipated for optimal management
Luxembourg life assurance
Tailor-made wealth management solutions
Disclaimer: the content of this communication does not constitue any offer or solicitation for the purchase of any life assurance product. OneLife does not warrant, represent or guarantee that the information contained within this communication is complete, accurate or up-to-date at the time of distribution. Neither is this information intended to constitute any form of legal, fiscal or investment advice and the information provided in this communication or any other pre-contractual document should therefore be used only conjuncture with appropriate professional advice obtained from a suitable qualified independent and professional source. January 2023
Portable assurance policies in the event of expatriation
Whether it’s new career developments or a pension-related choice, international mobility is growing steadily.
For life insurance policyholders as for their beneficiaries, this means guaranteeing:
- Optimal protection of wealth even in the event of a change in country of residence
- Compliance with the rules in force in the various countries of tax residence
Features of our international life insurance policies
Luxembourg life insurance companies have developed unique international expertise and are thus able to ensure the portability of the policy in most situations.
An expatriation may require the adaptation of different characteristics of the policy:
- Investment vehicle
- Asset allocation
- Death cover
- etc.
The insurers’ wealth management teams are able to advise policyholders and their intermediary on the best way to adapt the policy in order to secure the wealth and benefit from the most favourable tax treatment in accordance with international rules.
When expatriation plans are already known at the time the policy is taken out, insurers anticipate future adaptations and select the most appropriate structure.
