TLDR: If you are a tax resident in France, you must declare all life insurance contracts taken out with foreign institutions, regardless of their value or annual activity. The declaration must be submitted with your income tax return, with no exemptions for inactive or low-value contracts.
Declaration Obligation
If you are a tax resident in France, you must declare all life insurance contracts taken out with institutions established abroad. The obligation applies to both active and dormant contracts, with no exemptions for small amounts or lack of annual transactions. Unlike French contracts, there are no minimum thresholds (€7,500).
Who Must Declare
The obligation applies to individuals who are tax residents in France and have taken out life insurance contracts with foreign institutions. Contracts taken out through French intermediaries are not included, even if the underlying investment is abroad. The obligation falls on the policyholder or, in the case of dependents, the individuals specified in Article 196 of the French General Tax Code (CGI).
Methods and Deadlines
The declaration of foreign contracts must be submitted at the same time as your income tax return, generally by May or June, depending on your department of residence. There is no separate deadline—this obligation follows the standard deadlines for the annual tax return. The information must be included as a supplementary declaration to the overall tax return, in accordance with Article 1649 AA of the CGI.
Required Information
The declaration must include:
- Contract identification details (e.g., policy number).
- Effective date and duration of the contract.
- Transactions carried out in the previous year (premium payments or partial withdrawals).
- Surrender value or guaranteed capital as of January 1 of the declaration year, even if expressed as an annuity.
Consequences of Non-Declaration
Payments made through undeclared contracts are automatically considered taxable income by the French tax authorities. The burden of proof lies with the policyholder, who must demonstrate the non-income nature of the funds in the event of a dispute. There are no exemptions for inactive or long-term foreign contracts.
Differences with French Contracts
Unlike French contracts, which have a €7,500 threshold, foreign contracts must be declared regardless of their value or annual activity. There are no exemptions for low-value or inactive contracts.