top cx logo
cx logo
Explorearrow down
search icon

Charges due on French AV withdrawals

We have assurance vie contracts we have held for nine years. If we start to withdraw €9,200 per year as a couple, how much will be due in social charges and tax?  I.S.

After holding an assurance vie contract for eight complete years, there is a tax-free element that you can take which, as you correctly identify, is €4,600 per person or €9,200 per couple. As a result, there is no income tax on this amount.

The charges are levied on the gain element included in the withdrawal, and this will depend on the amount by which your contracts have increased in value since you took them out (they are levied in proportion to this). The charges will be levied at 17.2% on the amount of this gain.

They are levied directly by the assurer, so if you wish to remain in the income tax-free amounts, you will receive less than the €9,200.

 

Reader's query answered by Hugh MacDonald

The Connexion welcomes queries and regularly publishes a selection with answers. However, please note that we cannot enter into individual correspondence on money topics. Queries may be edited for length and style. Due to the sensitive nature of topics we do not publish full names or addresses on these pages.

Send your financial query to news@connexionfrance.com

The information here is of a general nature. You should not act or refrain from acting on it without taking professional advice on the specific facts of your case. No liability is accepted in respect of these articles. These articles are intended only as a general guide. Nothing herein constitutes actual financial advice

Resident or second-home owner in France?
Benefit from our daily digest of headlines and how-to's to help you make the most of life in France
By joining the newsletter, you agree to our Terms & Conditions and Privacy Policy
See more popular articles
The Connexion Help Guides
featured helpguide
Healthcare in France*
Featured Help Guide
- Understand the French healthcare system, how you access it and how you are reimbursed - Useful if you are new to the French healthcare system or want a more in-depth understanding - Reader question and answer section Aimed at non-French nationals living here, the guide gives an overview of what you are (and are not) covered for. There is also information for second-home owners and regular visitors.
Get news, views and information from France