Luxembourg life insurance comes up a lot in conversations about wealth planning for internationally mobile people, often wrapped in talk of security and sophistication. But what is it, actually, and how does it work in practice? This is a plain explanation of the product itself, before any question of whether it's right for you. What is a Luxembourg life insurance policy? At its core, it's the same idea as a French life insurance contract (assurance-vie): a wrapper you pay mo

If you let a furnished property in France under the LMNP regime, the draft 2027 budget (PLF 2027, tabled on 1 October 2026) contains a change aimed squarely at you: a cap on the depreciation you can deduct each year. It's one of the measures with the broadest reach, around a quarter of landlords are said to use LMNP, and it would meaningfully raise the tax on furnished rental income. As with everything in the draft budget, this is a proposal in debate, not adopted law; Parlia

France's draft budget for 2027 (the projet de loi de finances, or PLF 2027) was tabled on 1 October 2026 and is now going through Parliament. It contains two proposals that matter for expats with wealth structured in France: a tightening of the life insurance regime, and the end of a long-standing capital-gains break on apport-cession. Both are still proposals, so nothing below is settled law, the text can be changed, watered down or dropped during the debates. But they're wo

If you hold investments in France, or foreign investments taxed here, your tax bill on them went up at the start of 2026, and it's easy to miss because the change is buried in the social charges rather than income tax. The flat tax on investment income has moved from 30% to 31.4%. Here's what actually changed, which of your income is affected, and which is spared. What changed, in one line France levies "social charges" (prélèvements sociaux) on investment income on top of in

Real estate is one of the main ways to build wealth in France, and the tax code offers several schemes to reduce what you pay while you do it. But "defiscalisation" doesn't mean the same thing from one scheme to the next: some give you a tax reduction, some let you deduct expenses, and, crucially, they don't all treat your rental income the same way. This guide walks through the schemes available in 2026, how each one works, and, for each, whether your rents are taxed or not.

On regulated savings like the Livret A and the LDDS, the date you withdraw can quietly cost you up to half a month of interest. It's a small amount on a single transaction, but it's avoidable once you understand how the interest is calculated. Here's how to time your withdrawals so you don't give up interest you've already earned. Livret A and LDDS: the fortnight rule (quinzaines) Interest on the Livret A and the LDDS isn't calculated day by day. It's calculated in fortnightl

A holding company can help business owners organise their companies and reinvest profits. Its benefits depend on the business owner’s plans and the applicable tax rules. It does not automatically eliminate tax. What is a holding company? A holding company is a company that owns shares in one or more other companies. For example, an entrepreneur may own a holding company, which in turn owns the operating company that runs the business and generates revenue. A holding company m

If you pay income tax in France, you've probably heard of défiscalisation, the legal ways to reduce your tax bill. The options are many, and each one comes with its own rules, risks and deadlines. Before we get into them, one key reminder: what you do in 2026 reduces the tax you pay in 2027, since your 2026 income is declared in spring 2027 and the final bill is calculated that summer. For almost all of the schemes below, the payment or investment must be made by December 31,

If you live in France (or earn income here) and want to lower your French income tax, there's one date that matters more than any other, and it's probably not the one you think. Many expats assume they have until the spring tax declaration to "sort things out." By then, it's too late. Here's why. How the French tax calendar actually works The French system can be confusing because it runs on a one-year lag. Your 2026 income is taxed in 2027. In spring 2027, you'll file a retu

SCPIs (sociétés civiles de placement immobilier) are a way to invest in real estate without buying a property yourself. Instead of purchasing a flat or a building on your own, you buy shares in a company that owns and manages a portfolio of real estate. If you're familiar with REITs in your home country, an SCPI is the closest French equivalent, though not identical, so it's often an easy concept for expats to grasp. How does an SCPI work? An SCPI pools money from many invest

Leaving something off your tax return is easy to do, foreign dividends, interest, rental income, a bank account held abroad, a Luxembourg life insurance policy, or a tax reduction filled in wrong. The good news is that a genuine, good-faith mistake can usually be put right. The one thing you shouldn't do is leave it unaddressed. What happens if you forget something? It depends on the nature of the omission. A taxable income wasn't declared. The tax authorities can recalculate

Short answer: yes. If you're a French tax resident and you earn dividends or interest on a securities or savings account held with a foreign bank or broker, that income is taxable in France, even if the money never left the account abroad and even if tax was already withheld in the source country. France taxes the worldwide income of people who are tax resident here, under Article 170 of the French General Tax Code. It doesn't matter where the account sits or where the money

Are you a French tax resident who received dividends or interest on a securities or savings account held with a foreign bank or broker? That income has to be declared in France, even if the money never left the account abroad. It's a common blind spot, and the rules run through several forms, so here's how it actually works. The French tax authorities tax income earned abroad by people resident in France, under Article 170 of the French General Tax Code. Where the money physi

The Livret de Développement Durable et Solidaire (LDDS), previously called the Codevi, is a regulated savings account available from French banks. It lets you set money aside while keeping the freedom to withdraw it at any time, and it channels part of your savings toward sustainable and socially useful projects. Think of it as the Livret A's close cousin, with a green and solidarity focus. How does the LDDS work? The LDDS bundles together several appealing features. Your mon

The Livret A ( sometime called "Livret Bleu") is the best-known regulated savings account in France. It's easy to open, your money stays available at all times, and the interest is completely tax-free, which is why it's the go-to option for building up an emergency fund. But what actually happens to the money you deposit? Is it invested in the stock market? Does it fund the government directly? Here's what's really going on. What is a Livret A? A Livret A is a savings account

Are you a non-French national living and paying tax in France? A Luxembourg life insurance policy is one of the more popular wealth-management tools among internationally mobile people and for good reason. But it's worth being clear from the outset that it isn't automatically tax-free. The deciding factor here isn't your nationality. What matters is your French tax residency, the country where the policy is held, and the tax treaty that may apply. The Triangle of Security: wh

Do you hold a securities account with an institution based outside France? If so, there's a specific declaration you may be legally required to file, even if you didn't sell anything, make a withdrawal or earn a single euro during the year. It's an easy obligation to overlook, and the penalties for missing it are steep. The rule applies to people who are tax resident in France and hold an account with a foreign bank, broker or financial institution. It also reaches further th

The move to mandatory electronic invoicing is closer than most people think, and it isn't just a big-company problem. Small businesses, SMEs, micro-enterprises, sole traders and even furnished-rental landlords all fall within its scope. If you invoice or get invoiced in France, this concerns you. The dates that matter The reform rolls out in two waves. From 1 September 2026, every business subject to VAT — including micro-entrepreneurs under the franchise en base scheme — has

Moving to France does not always mean that your tax obligations in your home country disappear. If you are an expatriate living in France, you may wonder whether you still need to file a tax return in your country of origin, particularly if you have kept financial, professional or family ties there. The answer depends mainly on your tax residence, the type of income you receive and the tax rules of your home country. When might you still need to file a tax return in your home

You just realized you paid too much tax a couple of years ago. First question: is it too late? Usually, no. You have until the end of the second year In France you can claim a refund up to 31 December of the second year after the tax was collected. So tax collected in 2024? You have until 31 December 2026. Tax collected in 2025? Until 31 December 2028. If you're inside that window, you can still get your money back. How to claim it (5 minutes) Log in to your account at impots