What taxation for the capitalization contract?

The taxation of the capitalization contract is based on the principle of deferred taxation: capital gains and income are only taxed during partial or total repurchases.

💰 Partial redemptions: Only the capital gain proportional to the withdrawal is taxed.

📆 Duration: Contracts over 8 years benefit from an annual allowance of €4,600 for a single person or €9,200 for a couple on earnings.

⚖️ Tax Choice: Taxation can be done either according to the 30% Single Flat-Rate Levy (PFU) or according to income taxation after allowance.

Concrete example:

Alexandre has a capitalization contract of €100,000 invested for 9 years. His capital has increased to €140,000. He makes a withdrawal of €10,000, including €4,000 in capital gains. With the allowance of €4,600, he will pay no tax on this withdrawal, only social contributions of 17.2% on the share of the gains.

Tip:

To optimize taxation, spread your repayments over time in order to take advantage of annual allowances and minimize taxation.