Luxembourg Life Insurance advantages for Czech Residents
- Free designation of the beneficiary or beneficiaries at any time
- Absence of taxation if no redemption is made during the life of the contract
- Gains taxable at a rate of 1 5% in the event of redemption or exit at the end of the contract, and must be declared in the annual income tax return
- Unrealised gains are not included in income tax in the event of death
- A way of passing on assets
- The capital payable on the death of the policyholder does not enter into the deceased’s estate.
- Capacity to transfer capital freely to the selected beneficiaries.
- No inheritance tax or gift tax between direct heirs or between brothers and sisters1
- Tax optimisation is possible in the event of cross-border e states, where beneficiaries are located outside Czech Republic, thanks to the non-double taxation tax treaties signed by the Czech Republic.
1*For other types of heirs, the rate is 15%.