What is meant by rentes viagères?
A rente viagère is the equivalent of a UK purchased life annuity
What does rentes viagères a titre onéreux mean and what kinds of annuity should be declared within this category? Does it apply to an annuity bought with a one-off payment at onset for income protection at a much later date or to an
annuity bought with capital from a private pension plan. Should either of these be subject to the three social charges CSG, CR DS and PS if you have an E121? J.T.
A rente viagère is the equivalent of a UK purchased life annuity, the annuity purchased with an ordinary one-off payment to provide income at a future date.
An annuity bought with the proceeds of a pension plan (a “pension annuity” in the UK) is treated as a replacement of work income and is taxed as a pension.
The ordinary purchased life annuity is an investment, so is liable to social charges, but is eligible for an income tax abatement, depending on the age of the recipient.
On the other hand, the recipient of pension income who also holds an E121 and only benefits from French healthcare, is exempt from social charges on this since they are not a liability to the French social security system because these costs are paid for by the UK.
