Luxembourg Life Insurance advantages for Belgium Residents

• Free designation of the beneficiary or beneficiaries at any time
• No taxation on capital gains under Branch 23:
  • No withholding tax of 30% is due in the event of partial redemption, or even in the event of exit before 8 years and 1 day, nor on capital gains in the event of total redemption.
  • Life insurance is exempt from all taxes on securities transactions and securities accounts.
• The Stock Exchange Tax and the tax on securities accounts are not applicable
• A way of passing on assets:
  • Capacity to transfer capital freely to the selected beneficiaries, subject to compliance with reserved portions.
  • Life insurance and endowment contracts may be gifted during the life of the policyholder in order to reduce the inheritance tax payable by heirs.
  • Tax optimisation is possible in the event of cross-border estates, where beneficiaries are located outside Belgium, thanks to the non-double taxation tax treaties signed by Belgium.
  • Possibility of arranging  a dismembered beneficiary clause in order to prepare transmission over several generations.
• A way of passing on assets:
  • In the event of a gift of movable property, life insurance offers the possibility of using the “contractual right of reversion” clause, which allows the recovery of the amount gifted in the event that the beneficiary predeceases the donor.
  • Life insurance offers the possibility of using the “financial charge” clause, under which gifts are conditional on the payment of income to the donor over a predetermined period.

Our offer for legal entities  

Our Branch 26 multi-asset endowment contract benefits from taxation similar to that applicable to an investment product whose capital gains are subject to withholding tax at a rate of 30% in the event of redemption. For legal entities subject to corporation tax, this withholding tax may be included in corporation tax under certain conditions. A Branch 26 contract allows the deduction of notional interest, which may be interesting for companies. As is generally the case with life insurance, inheritance tax is payable in the event of death if the policyholder is a private individual. Endowment contracts may be gifted to a relative during the owner’s lifetime. Unlike life insurance, they are not unwound in the event of death. The beneficiary, after paying gift tax (if the policyholder is still alive) or inheritance tax (if the policyholder is deceased), can recover the contract as is. The duration of the subscription is chosen freely.