Wealth Management · Expertise
Securities accounts, assurance-vie, capitalization contracts, PEA, PER: choosing the right investment wrappers according to each person's tax residence, for French families and US taxpayers alike.
In brief
Since January 1, 2026, French social charges on most investment income have risen from 17.2% to 18.6%, bringing the flat tax (PFU) from 30% to 31.4%. Assurance-vie and capitalization contracts are excluded from this increase and remain at 17.2%, which makes them even more attractive. For a US taxpayer, the logic is different: the PFIC regime and FATCA reporting determine the choice of every investment.
The main investment wrappers
Dividends, interest and capital gains taxed at the 31.4% flat tax in 2026, unless the household elects the progressive scale. No contribution limits and no restrictions on investments.
Social charges kept at 17.2%, an annual allowance of €4,600 (€9,200 for a couple) on earnings withdrawn after eight years, and transfer outside the estate within the limits of articles 990 I and 757 B of the French Tax Code.
Same tax treatment on withdrawals as assurance-vie, but the contract survives the holder's death and can be gifted, including as bare ownership: a sought-after estate planning tool for large fortunes.
Gains exempt from French income tax after five years, with only social charges due, at 18.6% in 2026. Limited to European equities, with a contribution cap.
Contributions deductible from taxable income up to a cap, in exchange for taxation on withdrawal: worthwhile for taxpayers in high brackets during their working years.
European funds generally classified as PFICs, French wrappers not recognized by the IRS, FBAR and FATCA reporting: a dedicated structure, built with a US-French tax advisor.
Frequently asked questions
The election is all-or-nothing: it applies to all of the household's income and gains subject to the flat tax for that year. It often pays off for households whose marginal rate is 11% or less, thanks in particular to the 40% allowance on dividends and the partial deductibility of CSG; it should be modeled every year.
Because the 2026 Social Security Financing Act excluded it from the CSG increase: its earnings bear 17.2% in social charges, versus 18.6% for a securities account, a PEA or a PER. On top of that come the allowance after eight years and its own estate tax regime.
As a rule, no: IFI applies only to real estate. However, units in French real estate funds (SCPI, OPCI) and real estate units within an assurance-vie contract are included in proportion to their real estate component, which must be anticipated in the allocation.
Yes, but the IRS does not recognize these wrappers: their income is taxable in the United States as soon as it is realized, and the funds they hold generally fall under the PFIC regime. Directly held stocks or the euro-denominated fund often avoid this pitfall.
General information current as of November 2026, subject to future finance acts. It does not constitute personalized advice.
Contact
A first confidential conversation lets us review your current accounts and wrappers in light of your tax residence, in Paris or by video call.
contact@chevronsfamilyoffice.comChevrons Family Office
97 Bd Malesherbes – 75008 Paris
