Fran├žais English Deutsch   RSS

For any inquiries,
please call our main number: +352 26 48 01 01 or send mail to

Tax Optimisation

Life insurance is a neutral product as regards taxation. The tax laws of the country of residence of the policy holder apply. Most EU countries provide tax benefits to life insurance policy holders.
In addition, national laws apply special treatment to transmission of estates through life insurance.

In the UK, non-investment life policies do not normally attract either income tax or capital gains tax on claim. If a policy has as investment element such as an endowment policy, whole of life policy or an investment bond then the tax treatment is determined by the qualifying status of the policy. Qualifying status of the policy is determined according to certain criteria, including holding period (10 years is required), schedule of payment of premiums.
The taxation of life assurance based investment contracts may be beneficial compared to alternative equity-based collective investment schemes (unit trusts, investment trusts and OEICs)
The proceeds of a life policy are generally included in the estate for inheritance tax (IHT) purposes. However, if policies are written in trust, they may fall outside the estate. The insurance company will generally provide this option for free. Existing policies can also be transferred into trust.
Policies written in trust enable the holder to specify how the proceeds are paid out. The proceeds are not part of the estate and cannot be claimed by creditors at the time of passing. Rather the policyholder has the assurance that the payout will go to the intended recipients.

For the moment, life insurance policies are not subjet to withholding tax on interest income. This increases return compared to banking products with identical underlying assets.

Luxembourg life insurance policies offer the greatest freedom in Europe as regards the underlying investments. For high networth individuals, there are hardly any limits to the freedom of choice of underlying investments.

LIB will assist you in chosing the right policies, maximising the benefits with regard to taxation and return.


18 05 15
Interest rate on guaranteed return life insurance products in Luxembourg
As of Juli 1st 2015, the interest rate on Luxembourg life insurance (...)
18 12 13
Notice period for cancellation of non-life insurance contracts
As from March 1st 2013, the periods for cancellation of insurance contracts (...)
19 10 11
Professional liability insurance and the new rules on exchange of tax information between tax authorities.
Since the entering into force of the law of March 3rd 2010 on the exchange (...)

| 1 | 2 |