Life insurance
Life insurance offers many advantages:
It allows you to build up capital over the long term.
It also offers the possibility of supplementing one's income, in particular for retirement, by regular withdrawals or the transformation of your capital into a life annuity.
Finally, life insurance is an excellent tool for transmitting wealth thanks to favorable taxation and great freedom in the choice of beneficiaries.
Luxembourg life insurance
Luxembourg life insurance is accessible to French savers who have substantial funds to invest.
These contracts work in the same way as French life insurance policies, but with some specificities that can make them attractive.
The great advantage of life insurance in Luxembourg is Security. This unique protection regime for policyholders, known as the "security triangle", ensures legal and physical separation between the assets of policyholders on the one hand, and the assets of shareholders and other creditors of the insurance company on the other hand.
The Luxembourg contract not only authorizes payments in securities, but also in foreign currencies, which gives it unparalleled flexibility.
Finally, Luxembourg law contracts make it possible to invest in assets that are inaccessible in other tax envelopes: in particular Private Equity.
Death insurance
Death insurance allows :
To the designated beneficiary to receive a capital if the subscriber suddenly disappears. Your beneficiary will then be protected from the vagaries of life.
Take the form of an education annuity which will guarantee the children income so that they can continue their studies in the event of the death of their parents.
To serve as an annuity for the spouse
To serve more widely in the event of disability, accidental death cover, incapacity for work or loss of employment
Capitalization contract
The capitalization contract makes it possible to:
Build up available savings: profitable financial investment with diversification of support
Diversify your assets through simplified and diversified management
Secure your capital if investing in euro funds
Optimize your estate with donations
Tax optimization: the taxation of redemptions is attractive
Suitable for legal persons
PEA
Death insurance allows :
The PEA allows individual investors to invest in the stock market and thus benefit from the particularly attractive long-term performance of equities, all within a privileged tax framework since, beyond 5 years of holding, the gains are tax exempt (but no PS)
The PEA allows:
Increase your starting capital thanks to high return opportunities
To benefit from an advantageous tax system that does not affect performance
Obtain regular income
To serve more widely in the event of disability, accidental death cover, incapacity for work or loss of employment
Pension saving
The advantages of saving for retirement are as follows:
Prepare for retirement by capitalizing while reducing the tax burden.
The possibility of choosing between an exit in annuity or in capital,
The option to transfer the sums paid on old contracts to the PER
The amounts paid voluntarily into the PER are deductible from taxable income,
The possibility of unlocking savings in the event of an accident of life
The designation of a beneficiary in the event of death before retirement
Management which is free to choose from, and is managed over time.
Employee savings
The advantage of employee savings is twofold
for the benefit of the employees & the employer:
The sums invested by employees in the company savings plan allow them to benefit from:
An exemption from social charges (excluding CSG / CRDS).
An exemption from income tax (IR) under certain conditions.
The funds invested within the framework of a PEE in the form of a matching contribution allow employers to benefit from the following advantages:
Total exemption from social contributions.
An exemption from the payroll tax.
The sums invested are deductible from the taxable profit of the company.
SCPI
Subscribing to SCPI units allows you, from a few hundred euros, to invest in real estate.
The managers of SCPIs build up a diversified heritage by purchasing several types of goods.
Depending on the strategies, they invest in different geographic areas, several asset classes, various types of property
By buying their units, you therefore benefit from a wide diversification.
The heritage of SCPIs is much larger than what you could build up on your own
There are three types of SCPI:
performance SCPIs that allow you to receive regular rental income
tax REITs that generate an income tax reduction according to the corresponding tax law
SCPI of capital gain in order to be able to benefit from a strong increase in real estate capital between the date of subscription and the date of resale of its units
Life annuity
In France, there are two types of life annuity sales
The free life annuity
and the busy life annuity.
The life annuity sale allows:
To receive capital and / or income until death
To keep the enjoyment of your home
To benefit from tax advantages
While the purchase of a property in life allows:
Access real estate at a discount
To buy real estate without bank credit while having a payment step
To benefit from tax advantages
Naked Rental
A bare rental is therefore real estate that is rented without any furniture or equipment other than the necessary equipment.
In empty rental, you declare your rents in the category of property income.
Depending on the case, you will come under the micro-land or the real regime.
With the first, you are taxed on 70% of your rents.
The second allows you to create property deficits which lower your taxes.
Furnished rental
The advantages of renting a furnished apartment are numerous: attractive taxation, higher rents received and above all contractual freedom for the owner through various leases:
Principal residence lease
Student lease
Mobility lease
Seasonal lease.
On the income tax return, the rents received are entered in the column of industrial and commercial profits (BIC). Two tax options are possible:
the micro-BIC regime (with a reduction of 50 to 71%)
Under certain conditions of payment, the investor may opt for two statuses:
The professional furnished rental company
The non-professional furnished rental company
See Censi-Bouvard
Each of these statutes allows you to benefit from tax advantages.
Immovable :
Bare ownership
We speak of real estate purchase in bare ownership when the acquired property has been the subject of a dismemberment, that is to say that the right of ownership (full ownership) on the property is divided between:
Acquiring bare ownership of real estate allows:
to capitalize tax-free
to obtain direct (= capitalization) and indirect (= IFI gain) remuneration
Selling the bare ownership of a property allows:
to immediately obtain capital (= value of the bare ownership)
if the seller had full ownership, he retains the usufruct and can use the property or rent it to earn additional income
Land deficit
Investing in a property to renovate and carrying out work (repair, renovation and maintenance, upgrading) is an excellent way to optimize your taxation.
If the charges (property tax, insurance premium, loan interest, works) are greater than income, the taxpayer finds a property deficit.
This land deficit can be charged to the taxpayer's other property income (rents from other bare rented property, or from SCPI shares) then to his overall income (up to € 10,700) and beyond this amount, on his property income for the following 10 years.
The land deficit system also has the considerable advantage of not being subject to the overall cap on tax loopholes of 10,000 euros in tax reduction per year.
Pinel
The implementation of the Pinel system responds to objectives that the French government wishes to fulfill in order to relaunch housing . The main ones are as follows:
Encourage individuals to invest in new real estate for rental purposes
Stimulate the construction of housing in cities where rental demand is high (“tight areas”)
Develop the supply of rental housing at controlled and reasonable rents
The main ones advantages of the Pinel law are the following :
Tax allowance of up to € 63,000 over 12 years
Possibility of renting the acquired property to his family
Constitution of real estate
Preparation for retirement thanks to the rents collected and the capital gain on resale
Censi-Bouvard
The Censi-Bouvard system makes it possible to benefit, in the event of an investment before December 31, 2021, in accommodation located in a student residence or for the elderly or disabled, rented to the operator of the residence, from a reduction of tax equal to 11% of the cost price of the investment over 9 years.
This tax reduction is limited to € 300,000 investment per year.
In addition, it should be noted that:
The tax savings achieved thanks to the Censi-Bouvard law enter into the capping of tax loopholes at € 10,000.
The 20% VAT linked to this purchase is fully recoverable , provided the accommodation is kept for 20 years.
Malraux
Any owner of a building located in a historic district who decides to completely restore his property, to rent it out for residential use for 9 years, can benefit from a tax reduction under the Malraux law.
The principle of this device consists in buying a property in old real estate which must be entirely renovated (inside and outside) and not partially.
This allows investors to significantly reduce their tax amounts.
The amount of the work varies depending on the location of the property. The tax reduction therefore depends on the amount of work carried out.
The renovation works, validated by the architect of the buildings of France, lower your tax bill by 30 or 22% of a maximum expenditure of 400,000 euros.
Historical monuments
Investment in a historic monument is recommended for taxpayers who are heavily taxed and / or who are subject to the IFI.
Investing in the Historical Monuments Act 2021 therefore consists of acquiring a property requiring major restoration work. The costs of restoration and maintenance of the Historic Monuments property, as well as the interest on loans linked to the acquisition of the property and to the works are deductible at 100% of the property income.
The generated deficit is deductible from the overall income, without any cap.
Girardin
The so-called “Girardin” law created tax exemption systems which grant taxpayers domiciled in France a reduction in income tax, in return for investments benefiting the overseas economy in the overseas departments and regions ( DROM) and overseas communities (COM).
There are 3 main devices in Girardin:
Le Girardin Industriel: The Girardin Industriel law aims to stimulate the economic development of the French overseas departments and territories through the revival of private investment. The idea is to try to restore economic equality with the metropolis
Le Girardin social housing: The DOM TOM Girardin tax exemption system now makes it possible to finance social housing buildings leased to SEM (Mixed Economy Company), which are semi-public structures.
The Girardin IS: The Girardin IS is a tax exemption system which allows a metropolitan investor who is a legal entity subject to corporation tax, thanks to an ethical and solidarity investment, to deduct, in the same year, from its taxable income a sum greater than the amount of investments made and located in overseas territories.
Pod
The "Affordable rental" device called "Pod" allows a specific deduction of land income from new or old housing.
It applies to housing for which an agreement with the Anah was signed between January 1, 2017 and December 31, 2022.
The more modest the rent charged, taking into account its location, the higher the tax deduction: from 15 to 70% for a "classic" rental and up to 85% for a joint rental to an approved association, or a rental by the intermediary of a management mandate with an approved social real estate agency (rental intermediation).
Sofica
Film and audiovisual industry finance companies (Sofica) collect dedicated private funds to finance film and audiovisual production.
This device allows subscribers of units to benefit from a substantial income tax reduction.
The main advantage of Sofica is the tax reduction they provide.
The investment gives the right to a tax reduction ranging from 30% to 36% of the amount of net payments.
This reduction can reach 48% if the company devotes at least 10% of its investments to the production of series or to the export of French works abroad.
FIP & FCPI
FCPIs (mutual funds for innovation) and FIPs (local investment funds) have investments without a capital guarantee, but with an attractive return potential.
They reduce income tax (IR).
There are many advantages to investing in an FIP or an FCPI:
diversification of assets:
High risks, but diverse.
The performances are high since they are correlated with the risks incurred.
Tax exemption for payments.
Capital gains tax exemption.
The possibility of transferring its shares to someone else without losing the benefits of tax advantages.
Wood, Forest & GFF / GFI shares
Acquiring woods or a forest is a long-term investment which makes it possible to combine relatively regular income (logging, hunting rights) and the prospect of capital gains, in a very favorable tax framework.
The Forest Groups make it possible, like SCPIs, to join forces with other investors to acquire real estate assets and entrust their management to a Management Company. The Forest Groups buy forests and exploit them.
The first tax advantage offered by investing in a forestry group or acquiring wood & forests is a reduction in income tax.
This reduction amounts to 18% of the amount invested. The investment in GF offers an IFI (Immobilière fortune tax) allowance of 75% on the market value of the shares of forest groups held (Excluding cash).
Finally, the purchase of forest group shares finally offers a reduction of 75% on the transfer, only on the market value of the forest held by the GF (excluding subscription fees and cash).
Crowdfunding
Crowdfunding, or "crowdfunding" was born in the early 2000s with the rise of the internet.
It is an alternative financing tool that does not go through traditional circuits and tools, especially banking, but calls on financial resources from Internet users in order to finance a project, which can be of a very diverse nature (cultural , artistic, entrepreneurial, etc.).
It can take the form of donations, remunerated loans or participation in the company.
There are 3 types of crowdfunding:
the donation: with or without non-financial counterparts
the loan: which makes it possible to finance projects via free or remunerated loans
the investment which makes it possible to finance an entrepreneurial project via the subscription of equity or debt securities, and the counterpart of which is the participation in the possible profits of the project.
Giving gives you a tax reduction of 66% or 75% (the rate varies depending on the project) of the amount you donated. The tax reduction is deducted from the tax you owe in the year of your donation.