The tax framework
A Luxembourg life insurance policy is fiscally neutral for non-residents of Luxembourg. Indeed, Luxembourg does not tax either the premiums, the capital gains on surrender or termination, or the death benefit paid to the beneficiary of a unit-linked life insurance policy.
Under Luxembourg law, interest, dividends and capital gains under unit-linked life insurance policies are reinvested without any tax impact.
The applicable tax regime, for both the policyholders and policy beneficiaries of a Luxembourg life insurance policy is that of their country of residence. For more information we invite you to contact us to receive our "Taxsheets".
Life insurance has a favourable treatment in the majority of European countries. Life insurance policies under Luxembourg law are therefore designed to comply with the legal and tax requirements of the subscriber's country of residence.