It is a phenomenon that has been gaining momentum since the dissolution of June 2024. Worried about a political crisis that never ends and fearing new tax increases on high incomes to reduce the abysmal public deficit, the great French fortunes are placing more and more assets in Luxembourg and, to a lesser extent, in Switzerland, reports the Financial times.
“The majority of the assets we manage are no longer in France, but are allocated to life insurance contracts in Luxembourg. This is accelerating greatly,” observes Guillaume Lucchini, founder of the wealth manager Scala Patrimoine, in the British newspaper. Olivier Roumélian, a tax lawyer who works with insurers in the Grand Duchy, also points out that investment flows to Luxembourg have been “uninterrupted” in recent months.
The figures confirm it. According to the Commissariat aux Assurances, Luxembourg’s sector monitoring body, investments by French clients in life insurance in Luxembourg increased by more than 54% in 2024, to €13.8 billion. Never seen before. Although the data for 2025 is not yet known, experts point out that requests for information on investments in the Grand Duchy continue to grow.
“Safety before performance”
Political and budgetary crisis, international tensions… “There is a very worrying general context. On a social level, there is real tension. And this tension is reflected through investments. There are people who today fear for their assets,” François-Xavier Sœur, asset manager at Terra Patrimoine, confirmed to BFM Business.
For this reason, they wonder if they should not protect their assets “from extreme geopolitical risks” and invest their money “in a country that is economically weaker” than France and its debt of 115% of GDP, the expert explained. More than tax reasons, what the richest people who invest in Switzerland or Luxembourg are looking for is stability.
The “Luxembourg superprivilege”
Furthermore, investing your money in life insurance in Luxembourg does not offer any additional tax advantages compared to life insurance contracts taken out with a French establishment. On the other hand, “you can access the Luxembourg super-privilege: if the insurer goes bankrupt, you appear before the State”, recalls François-Xavier Sœur. This exceptional guarantee provides additional security “which means that, if the apocalypse really comes, less will be lost in Luxembourg than in France,” notes the asset manager.
Please note, however, that the entry fee for investing in life insurance in Luxembourg is high: generally €250,000 minimum. François-Xavier Sœur also asks those who wish to move their assets abroad to be very cautious, because it is never a good idea to “hurry because you are afraid.”
Source: BFM TV
