Does an Assurance Vie offer similar advantages to ISAs?

French Finance

Does an Assurance Vie offer similar advantages to ISAs?

gjp23 21/05/2008, 12:01
I'm getting close to my chosen retirement date, and a move across to France, where we already have a mortgage free home. If I was to remain in the UK, I would expect to draw tax free income from my ISA, which would keep me going until my company and state pensions kick in. Given that the tax free status of ISAs are not recognised in France, are there French options I should be considering? I believe that an Assurance Vie is some kind of tax efficient wrapper but I'm struggling to find detailed information.

Regrettably, enquiries to certain 'professionals' in this area, who regularly advertise in Living France and France magazines, have not solicited any response.

All help, pointers etc. gratefully received. Thanks.

Re: Does an Assurance Vie offer similar advantages to ISAs?

tinabee 22/05/2008, 16:10

there is quite a good explanation here

http://www.francethisway.com/assurance-vie-france.php

(I have no connection with this firm and have never used their services)

There is another article here

http://www.frenchentree.com/fe-legal/DisplayArticle.asp?ID=29309

There are also other tax-free savings accounts in France -

http://www.frenchentree.com/fe-finance/DisplayArticle.asp?ID=32419

For inheritance tax purposes it is better to set up an Assurance Vie BEFORE moving to France.

Re: Does an Assurance Vie offer similar advantages to ISAs?

gjp23 23/05/2008, 13:26
Thanks TB. I'll go do some reading Smile [:)]

Re: Does an Assurance Vie offer similar advantages to ISAs?

tinabee 23/05/2008, 16:44

If your French is up to it, here's a few more websites

http://www.pratique.fr/vieprat/dem/assur/daf3609.htm

http://www.meilleures-offres-finance.com/a/s/vie.html

http://www.cbanque.com/placement/assurance-vie-2.php

There is normally a fee for opening the contract, then an annual management fee - these vary between different providers.

Re: Does an Assurance Vie offer similar advantages to ISAs?

gjp23 04/06/2008, 13:32

Thanks again TB. With the occasional use of a dictionary, I can manage these quite nicely, although I need a bit more time to follow up some of the links. At that stage, the French language skills may start to creak a little!!

Re: Does an Assurance Vie offer similar advantages to ISAs?

chessfou 08/06/2008, 9:12
If you are talking about MAXI ISAs as opposed to cash ISAs, then the French "equivalent" is the PEA - Plan d'Epargne en Actions.

Big differences cf ISAs:
- you can put in up to €130,000 (actually 132 or 134; in one lump or over time);
- gains only become fully tax free (even then subject to 11%) after (memory) 8 years (5 years is also significant).

If you Google Plan d'Epargne en Actions, you'll find loads of stuff. The main French on-line brokers (Boursorama and Fortuneo) are good sources of information as well as the obvious candidates if you choose to go down this route (I chose Fortuneo a couple of years ago - mainly because they seemed to be better and cheaper for LSE stocks), especially if you are going "self-select."

Re: Does an Assurance Vie offer similar advantages to ISAs?

gjp23 11/06/2008, 22:02
More French reading for me! But it really does look as if there are some valid alternatives out there. I had not heard of this one before.

Thanks chesspou, it's much appreciated.

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