What is a capitalization contract?

The capitalization contract is a financial product allowing to invest capital with advantageous taxation and to transfer wealth easily. It operates on the same principle as a life insurance, but with key differences.

💡 Main objective: To grow capital over time through supports in euros (secured) or in units of account (riskier but potentially more remunerative).

🎯 Advantage: Invested capital can grow without being taxed immediately, as taxation applies only on withdrawals.

Unlike life insurance, the capitalisation contract does not disappear in the event of the policyholder’s death: it is transferred to a designated beneficiary or integrated into the estate, making it an ideal tool for wealth transfer strategies.

Concrete example:

Sophie subscribes to a capitalization contract of €50,000. She chooses to invest €30,000 in a secure euro fund and €20,000 in a European equity fund. After 10 years, her capital has increased by €12,000. If she makes a partial withdrawal, she will only pay tax on the proportional capital gain withdrawn, and not on the entire capital.

Tip:

The capitalization contract is particularly suitable for investors wishing to transfer capital while maintaining full control over withdrawals and investment vehicles.