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Life insurance in France: taxed in Box 3 or Box 1?


Question:
 
In 2013 I will buy a house and be a resident in the Netherlands. I have a banque assurance vie in France since 20 years. How will this life insurance be taxed in the Netherlands? Will it be taxed in box 3 or in box 1?
 
Answer:
 
The life insurance will fall under the standard rules which means that it will be taxed in Box 3 for the value of the policy on 1 January of the year. If it is unsure whether the insurance will ever pay out the value of the insurance may be low. This is the case for example if the policy does not insure a capital which is paid out if you do not die before a certain date and the insurance contains a date after which payment will not be insured anymore. So a real life insurance. If the insurance contains a "guaranteed" capital, the value will be higher.
 
Since the insurance is set up under French law it will not meet the requirements for tax exemption which were included in the (old) Dutch tax law. In the past Dutch law knew exemptions for certain capital/life insurances. This only concerns capital insurances which were arranged before 14 September 1999.
 
It may be possible to link the insurance with the mortgage which you may arrange to buy the house in the Netherlands. But this requires specific investigation.
 
 
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Comments (2)
Comment by Sandy on Sat, Mar 11th, 2017 at 10:55 AM
Hello Arjan, How do I declare shares that I have in the US due to the company I am working for? Do I need to declare the value at Jan 1st in box 3? Thanks for your advice, KR, Sandy
Comment by Arjan Enneman on Tue, Sep 19th, 2017 at 2:12 PM
Shares received from an employer as a reward for services you have provided to your employer are in general not taxed in Box 3 but in Box 1 (box 1 only if the shares were received with relation to a Dutch working period)
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