French Finance & Investment Glossary

French: Abattement

A deduction applied to the taxable base before calculating the tax owed. In life insurance (assurance vie), an annual allowance of 4,600 EUR (single) or 9,200 EUR (couple) applies to gains upon withdrawal after 8 years of holding the policy. For inheritance purposes, an allowance of 152,500 EUR per beneficiary applies to premiums paid before age 70 (Article 990 I of the CGI).

French: Allocation d'actifs

The strategic distribution of savings across different asset classes (euro fund, equities, bonds, real estate, etc.) according to the risk profile and investment horizon. A sound asset allocation is the primary driver of portfolio performance.

French: Annuite

A sum paid or received on a regular basis (annually). In the context of the PER, annual contributions determine the tax savings. When exiting a PER, the life annuity is a form of annuity paid until the death of the beneficiary.

French: Arbitrage

An operation consisting of transferring all or part of the savings from one investment fund to another within the same life insurance policy. For example, moving from unit-linked funds to the euro fund to lock in gains. Fund switches do not trigger any taxation as long as the money stays inside the policy.

French: Article 757 B du CGI

A provision of the French General Tax Code (Code General des Impots) governing the taxation of death benefits from premiums paid after age 70 on a life insurance policy. A single overall allowance of 30,500 EUR (shared among all beneficiaries) applies to the premiums paid. Any interest earned is exempt from taxation.

French: Article 990 I du CGI

A provision of the French General Tax Code that sets the taxation of death benefits from premiums paid before age 70. Each beneficiary benefits from a 152,500 EUR allowance. Beyond that, a 20% levy applies up to 700,000 EUR and 31.25% above that amount.

French: Assurance deces

The guarantee included in a life insurance policy that provides for the payment of capital to the designated beneficiaries in the event of the insured's death. This is the 'insurance' component of life insurance, distinct from the 'savings' component. Some policies offer a minimum death benefit guarantee on unit-linked funds.

French: Assurance vie

A savings and insurance contract between a policyholder and an insurer. It allows you to build capital, grow it through various investment vehicles (euro fund, unit-linked funds), and pass it on under favorable tax conditions. It is the most popular financial product in France, with over 1,900 billion EUR in assets under management.

French: Assurance vie bancaire

A life insurance policy distributed by a bank (online or traditional). Policies from online banks (Boursorama Vie, Fortuneo Vie) often offer better conditions (fees, available funds) than those from traditional banks, while still falling short of specialist brokers (Linxea, Placement-direct).

French: Avance

A loan granted by the insurer to the policyholder, secured by the life insurance policy. Unlike a withdrawal, the advance does not trigger any taxation because the capital remains invested. It is typically granted for 3 years (renewable) at an interest rate set by the insurer.

French: Aversion au risque

An investor's tendency to prefer a certain investment over an uncertain investment with the same expected return. Risk aversion determines the investor's profile (conservative, balanced, aggressive) and drives their asset allocation between safe and risky investments.

French: Banque en ligne

A banking institution offering all its services exclusively online, without physical branches. Examples: Boursorama, Fortuneo, Hello Bank, BforBank. Advantages: reduced or zero fees, free bank card, competitive savings rates. Subsidiaries of major banking groups.

French: Bareme progressif de l'IR

A method of income taxation using brackets with increasing rates (0%, 11%, 30%, 41%, 45% in 2026). For life insurance, the policyholder can opt for the progressive scale instead of the flat tax (PFU) when filing their tax return, which may be advantageous if their marginal tax rate is below 12.8%.

French: Beneficiaire

An individual or legal entity designated in the beneficiary clause of a life insurance policy to receive the capital upon the death of the insured. The designation can be by name, by status ('my spouse, my children'), or by will. The beneficiary benefits from a favorable tax regime.

French: Bilan patrimonial

A comprehensive snapshot of an individual's or household's wealth at a given point in time: assets (real estate, investments, savings), liabilities (loans), income, and expenses. The wealth assessment is the first step in any wealth management strategy and helps identify areas for optimization.

French: Bitcoin

The first and largest cryptocurrency, created in 2009 by Satoshi Nakamoto. A decentralized peer-to-peer payment network based on blockchain technology. Supply limited to 21 million units. Considered a 'digital store of value.' Highly volatile: swings of -50% to +100% in a year are common.

French: Blockchain

A distributed and immutable digital ledger that records all transactions chronologically. Each block contains a set of validated transactions and a cryptographic link to the previous block. Bitcoin's blockchain processes approximately 7 transactions per second, Ethereum approximately 15.

French: BOFiP

Bulletin Officiel des Finances Publiques - Impots. The online documentation database of the French tax administration that publishes instructions and commentary on tax legislation. It is the authoritative source for tax rules applicable to life insurance and PER.

French: CAC 40

The main French stock market index, composed of the 40 largest market capitalizations listed on the Paris Stock Exchange (Euronext). Created in 1987 with a base of 1,000 points. The CAC 40 is a 'price return' index: it does not account for reinvested dividends (unlike the CAC 40 GR).

French: Capitalisation

The mechanism by which the interest generated by an investment is reinvested and itself produces interest. In life insurance, gains on the euro fund are automatically compounded (ratchet effect). This is the principle of compound interest.

French: Carte bancaire gratuite

A bank card (Visa or Mastercard) offered with no annual fee, usually subject to income or minimum usage conditions. Free Visa Classic cards are available at most online banks. Premium cards (Visa Premier, Gold) are free subject to income requirements.

French: CEL (Compte d'Epargne Logement)

A regulated savings product linked to housing. Rate of 2% in 2026, ceiling of 15,300 EUR. More flexible than the PEL (withdrawals possible without losing mortgage rights). Can be combined with a PEL to obtain a preferential-rate mortgage.

French: CGI (Code General des Impots)

The legislative text grouping all tax provisions applicable in France. Articles 990 I and 757 B of the CGI govern the taxation of death benefits in life insurance. Article 163 quatervicies sets the rules for PER contribution deductions.

French: CGP (Conseiller en Gestion de Patrimoine)

An independent professional or network-affiliated advisor authorized to advise on all financial, real estate, and tax-related investments. The CGP may be paid by fees (independent advice) or commissions (retrocessions from products sold). They must be registered with ORIAS and may hold CIF status (Conseiller en Investissements Financiers / Investment Advisor).

French: Clause beneficiaire

The provision of a life insurance contract that designates the beneficiary or beneficiaries of the capital in the event of death. Its wording is crucial: a poorly drafted clause can lead to legal difficulties and heavier taxation. The standard clause is: 'My spouse, failing that my children, born or to be born, living or represented, in equal shares, failing that my heirs.'

French: Contrat en euros

A life insurance policy where savings are invested exclusively in the euro fund. The capital is guaranteed by the insurer and interest earned each year is permanently locked in (ratchet effect). The return is generally lower than a multi-fund policy.

French: Contrat luxembourgeois

A life insurance contract taken out with an insurer based in Luxembourg. It offers enhanced investor protection (triangle of security, super-privilege), access to a broader investment universe (dedicated funds, private equity), and tax neutrality (the policyholder is taxed according to the rules of their country of residence).

French: Contrat multisupport

A life insurance policy that allows investment across multiple vehicles: the euro fund (guaranteed capital) and unit-linked funds (UC) such as mutual funds, ETFs, real estate funds (SCPI), etc. The policyholder allocates their savings according to their risk profile and goals.

French: Couple fiscal

A tax household consisting of two spouses who are married or in a civil partnership (PACS), subject to joint taxation. The couple benefits from 2 shares for the family quotient, doubled ceilings for many tax schemes (life insurance allowance 9,200 EUR, combined PER ceiling), and income pooling which can reduce the effective marginal tax rate.

French: Courtier

A financial intermediary who executes stock market orders on behalf of clients. Online brokers (Bourse Direct, Fortuneo, Saxo) offer much lower fees than traditional banks. The choice of broker is a key factor for transaction costs.

French: CRDS (Contribution au Remboursement de la Dette Sociale)

A social levy of 0.5% charged on investment income, forming part of the overall 17.2% social charges. Unlike part of the CSG, the CRDS is never deductible from taxable income.

French: Credit Lombard

A loan granted by a bank secured by a pledge of financial assets (life insurance, securities portfolio, PEA). The Lombard loan allows accessing liquidity without selling assets, thus avoiding tax on capital gains. The loan-to-value ratio is typically 50 to 80% depending on the nature of the pledged assets.

French: Crowdfunding immobilier

A participatory funding method for investing in real estate projects (development, renovation, property trading) via online platforms. Target return of 8 to 12% over 12 to 36 months. Risk of capital loss and illiquidity. Entry from 1,000 EUR.

French: CSG (Contribution Sociale Generalisee)

A social levy of 9.2% forming part of the total 17.2% social charges applicable to investment income. On life insurance gains, the CSG is levied at the overall rate of 17.2% (CSG + CRDS + solidarity levy). A portion of 6.8% of CSG is deductible if the taxpayer opts for the progressive income tax scale.

French: CTO (Compte-Titres Ordinaire)

An account for buying and selling any type of securities (stocks, bonds, ETFs, etc.) without geographic restrictions or deposit ceiling. Gains are subject to the 30% flat tax (or progressive scale by election). Less tax-efficient than the PEA but more flexible.

French: DCA (Dollar Cost Averaging)

An investment strategy consisting of investing fixed amounts at regular intervals (scheduled contributions), regardless of market conditions. This smooths the average purchase price and reduces the impact of volatility. In life insurance, this translates to scheduled monthly deposits.

French: DeFi (Finance Decentralisee)

An ecosystem of financial services built on blockchains (mainly Ethereum), operating without traditional banking intermediaries. Enables lending, borrowing, exchanging, and staking of cryptocurrencies via decentralized protocols. Potentially high returns but significant risks (hacks, bugs, regulation).

French: Deficit foncier

A mechanism allowing the deduction from overall income of rental expenses (renovation, loan interest) exceeding rental income, up to 10,700 EUR per year (21,400 EUR for energy-efficiency renovations). The surplus is carried forward against rental income for the following 10 years.

French: Demembrement

A legal technique consisting of splitting property ownership between usufruct (right of use and enjoyment) and bare ownership. In life insurance, splitting the beneficiary clause allows designating a usufructuary (often the spouse) and bare owners (often the children), thereby optimizing estate transfer.

French: Denormandie

A tax relief scheme for renovating older properties in eligible towns. Same benefits as Pinel (12 to 21% reduction depending on the commitment period). The cost of renovation work must represent at least 25% of the total cost of the operation.

French: Denormandie (rappel)

A tax relief scheme for renovating older properties in eligible municipalities. Same mechanism as Pinel with an income tax reduction of 12 to 21% depending on the commitment period (6, 9, or 12 years). Condition: the cost of renovation work must represent at least 25% of the total cost of the operation.

French: Dispositif Malraux

An income tax reduction for restoration work on buildings located in protected heritage zones (30%) or heritage protection areas (22%). The reduction applies to work up to 400,000 EUR over 4 years. Advantage: falls outside the standard 10,000 EUR tax niche ceiling.

French: Diversification

A strategy of spreading savings across different types of investments, sectors, and geographical areas to reduce the overall risk of the portfolio. In life insurance, diversifying between euro fund and unit-linked funds, between equities and real estate, helps smooth performance.

French: Dividende

A share of a company's profit distributed to shareholders. The dividend yield is the ratio of the dividend to the stock price. In a PEA after 5 years, dividends only bear 17.2% social charges. In a standard brokerage account, they are subject to the 30% flat tax.

French: Effet cliquet

A mechanism specific to the euro fund that guarantees that interest credited each year is permanently locked in and can never be lost. Once the gains are recorded in the policy, they become part of the guaranteed capital.

French: Effet de levier

A mechanism of borrowing to invest an amount greater than one's own funds. In real estate, a 50,000 EUR down payment allows acquiring a 200,000 EUR property through a 150,000 EUR loan, multiplying the return on equity by 4 if the property appreciates. Leverage amplifies both gains and losses.

French: Epargne de flux vs epargne de stock

Flow savings refers to regular contributions (monthly amounts), while stock savings refers to already-accumulated capital. A sound wealth strategy combines both: placing stock savings in vehicles suited to the investment horizon and automating flow savings via scheduled contributions.

French: Epargne handicap

A life insurance policy taken out by a person with a disability, benefiting from a 25% income tax reduction on premiums paid up to 1,525 EUR + 300 EUR per dependent child. The policy benefits from an enhanced 152,500 EUR death benefit allowance, cumulative with the standard life insurance allowance.

French: Epargne reglementee

The group of savings products whose conditions (rate, ceiling, taxation) are set by the French government. Includes the Livret A, LDDS, LEP, PEL, and CEL. Rates are periodically revised by the government on the recommendation of the Banque de France.

French: ETF (Exchange-Traded Fund)

A stock-exchange-listed investment fund that replicates an index (CAC 40, MSCI World, S&P 500, etc.). ETFs offer diversification at low cost (management fees often below 0.5%). An increasing number of life insurance policies offer ETFs as unit-linked funds.

French: ETF / Tracker

A stock-exchange-listed index fund that replicates the performance of an index (CAC 40, MSCI World, S&P 500, etc.). Very low fees (0.1% to 0.5% per year). Accessible via PEA, standard brokerage account, or life insurance. ETFs are the simplest and most cost-effective way to diversify a stock portfolio.

French: Ethereum

The second-largest cryptocurrency by market cap, launched in 2015 by Vitalik Buterin. A programmable blockchain enabling smart contracts and decentralized applications (DApps). The native cryptocurrency (ETH) serves as 'fuel' for executing transactions and smart contracts.

French: Exchange (Plateforme d'echange crypto)

An online platform for buying, selling, and trading cryptocurrencies. Major examples: Binance, Coinbase, Kraken, Bitstamp. In France, exchanges must be registered as PSAN (Prestataire de Services sur Actifs Numeriques / Digital Asset Service Provider) with the AMF (financial markets authority).

French: FCPI (Fonds Commun de Placement dans l'Innovation)

A fund investing at least 70% in innovative SMEs. Grants an income tax reduction of 18% (25% in certain cases) on the amount invested, up to 12,000 EUR (single) or 24,000 EUR (couple). Lock-up period of 5 to 10 years. Risk of capital loss.

French: FIP (Fonds d'Investissement de Proximite)

A fund investing in unlisted regional SMEs. Same tax benefits as FCPIs: 18% income tax reduction (25% in certain cases) within the same limits. FIPs Corsica and Overseas Territories benefit from an enhanced 30% reduction. Lock-up period of 5 to 10 years.

French: Flat tax (PFU)

See PFU (Prelevement Forfaitaire Unique). A commonly used term for the overall 30% levy (12.8% income tax + 17.2% social charges) applied by default to investment income since 2018.

French: Flat tax crypto

The default tax regime for capital gains on digital assets in France: 30% flat tax (12.8% income tax + 17.2% social charges) on gains realized when selling cryptocurrencies for euros or purchasing goods/services. Crypto-to-crypto exchanges are not taxable. An annual disposal threshold of 305 EUR applies, below which gains are exempt.

French: Fonds dedie

An investment fund created specifically for one or a few policyholders within a high-end life insurance policy (typically Luxembourg-based). It offers tailored management with a personalized investment policy. The entry threshold is generally above 250,000 EUR.

French: Fonds euros

A capital-guaranteed investment vehicle within a life insurance policy. The insurer invests primarily in government and corporate bonds. The return is announced each year (2.5% to 4.5% in 2024). Interest is permanently locked in thanks to the ratchet effect.

French: Fonds structure

A financial product combining a bond investment and a derivative to offer a conditional return. In life insurance, structured funds ('autocalls') offer potentially high returns (6-10%) with partial or full capital protection, subject to conditions linked to a stock market index performance.

French: Frais d'arbitrage

Fees charged by the insurer when transferring between funds within the policy. Many online policies offer free fund switches (or a number of free switches per year). Traditional policies may charge 0.5% to 1% of the amount switched.

French: Frais de gestion

Fees deducted annually by the insurer from the policy balance. They directly reduce the return. Management fees are typically 0.5% to 0.8% on the euro fund and 0.6% to 1% on unit-linked funds. Additional fund-level fees (from mutual funds) apply on top for unit-linked investments.

French: Frais de notaire

The total costs associated with purchasing a property, including transfer duties (departmental tax + municipal tax), notary fees, and disbursements. Approximately 7-8% of the price for existing properties and 2-3% for new-build properties.

French: Frais de tenue de compte

Fees charged by the bank for the day-to-day management of an account (statement keeping, online access, etc.). Traditional banks charge an average of 24 to 48 EUR/year. Online banks generally offer free account maintenance, representing significant savings.

French: Frais sur versement

Fees charged on each deposit made into the policy. They reduce the capital actually invested. Online policies (Linxea, Boursorama, Fortuneo) often charge 0% entry fees, while traditional policies may charge 1% to 3%.

French: Garantie plancher

An option offered on certain life insurance policies that guarantees the death benefit paid to beneficiaries will not be less than total net deposits, even if unit-linked funds have decreased in value. This guarantee has a cost (deducted from the balance) and protects against capital loss risk in the event of death.

French: Gestion libre

A management mode where the policyholder chooses their own investment funds and performs their own switches. This requires financial knowledge and regular monitoring. It is the most common management mode for knowledgeable investors.

French: Gestion pilotee

A management mode where a professional (asset management firm or robo-advisor) manages the allocation of savings according to a risk profile chosen by the policyholder (conservative, balanced, aggressive). Switches are automatic. Managed portfolio fees are added on top of the policy's management fees.

French: GFF (Groupement Foncier Forestier)

A legal structure allowing collective ownership of forests. Similar to the GFI but often smaller and managed directly by the partners. Same tax benefits: 18% income tax reduction and 75% partial IFI exemption. Minimum conservation commitment of 8 years.

French: GFI (Groupement Foncier d'Investissement)

A collective investment vehicle for investing in professionally managed forests. The GFI offers an 18% income tax reduction on the amount invested (up to 50,000 EUR) and a partial IFI exemption (75%). Low yield (1 to 2%) but significant tax benefits and appreciation of forest land value.

French: Girardin industriel

A tax relief scheme for financing productive investments in French Overseas Territories in exchange for a tax reduction exceeding the investment (yield of 10 to 15%). A one-shot operation over one year. Falls outside the standard 10,000 EUR tax niche ceiling (specific ceiling of 18,000 EUR).

French: HCSF (Haut Conseil de Stabilite Financiere)

The French macroprudential authority responsible for overseeing the financial system. Regarding life insurance, the HCSF can, under the Sapin 2 law, temporarily suspend withdrawals and fund switches in the event of a serious threat to financial stability. It also sets rules on real estate borrowing limits.

French: Horizon de placement

The length of time an investor plans to keep their capital invested before withdrawing it. The investment horizon is crucial for choosing asset allocation: short term (< 3 years) = euro fund/savings accounts, medium term (3-8 years) = conservative mix, long term (> 8 years) = aggressive profile possible.

French: IFI (Impot sur la Fortune Immobiliere)

An annual tax on net real estate assets exceeding 1.3 million EUR. The portion invested in real estate within a life insurance policy (SCPI, SCI, OPCI) is subject to the IFI in proportion to the real estate fraction of the policy. The euro fund and financial unit-linked funds are not affected.

French: Indice boursier

An indicator measuring the performance of a set of stocks representing a market. The most followed indices are the CAC 40 (France, 40 largest companies), MSCI World (1,500 stocks from 23 developed countries), and the S&P 500 (500 largest US companies).

French: Interets composes

A compounding mechanism where interest earned is reinvested and itself produces interest. The effect is exponential over time. Example: 10,000 EUR at 4% per year yields 14,802 EUR after 10 years and 21,911 EUR after 20 years (with no additional contributions). The 'Rule of 72' estimates the doubling time: 72 / rate = years.

French: Interets exoneres

Interest that is exempt from both income tax and social charges. This applies to interest from the Livret A, LDDS, and LEP. Other savings accounts (PEL opened after 2018, standard bank savings accounts) are subject to the 30% flat tax.

French: Interets simples

An interest calculation method based solely on the initial capital, without reinvesting gains. Unlike compound interest, the interest does not itself generate interest. Over the long term, the difference compared to compound interest is considerable.

French: ISR (Investissement Socialement Responsable)

An investment approach that integrates environmental, social, and governance (ESG) criteria into asset selection. Since the PACTE law, life insurance policies must offer at least one SRI-labeled unit-linked fund, one Greenfin-labeled fund, and one solidarity fund.

French: LDDS (Livret de Developpement Durable et Solidaire)

A regulated savings account at the same rate as the Livret A (2.5% in 2026), with a ceiling of 12,000 EUR. Interest is fully tax-exempt. One LDDS per person, can be held alongside a Livret A. The funds collected partly finance sustainable development projects.

French: LEP (Livret d'Epargne Populaire)

A regulated savings account reserved for taxpayers with modest incomes (income threshold applies). Rate of 4% in 2026, the highest among regulated savings accounts. Ceiling of 10,000 EUR. Interest exempt from income tax and social charges. One LEP per person.

French: Liquidite

The ability to convert an investment into cash quickly and without significant loss. Life insurance offers good liquidity: withdrawals are generally processed within a few days (48 hours to 2 weeks). The PER has low liquidity as funds are locked until retirement (except in exceptional cases).

French: Livret A

A government-regulated savings account available at any bank (one per person only). Rate set at 2.5% in 2026, with a deposit ceiling of 22,950 EUR. Interest is fully exempt from income tax and social charges. Interest is calculated bi-monthly. Capital is guaranteed and available at any time.

French: Livret bancaire

A remunerated savings account offered by banks, whose conditions (rate, ceiling) are freely set by the institution. Unlike regulated savings accounts, interest is subject to the 30% flat tax. Rates are often attractive during promotions (boosted rate for 2-3 months).

French: LMNP (Loueur en Meuble Non Professionnel)

A tax status allowing you to rent out a furnished property with favorable taxation. The real expense regime allows deducting charges and property depreciation, greatly reducing or even eliminating tax on rental income. Income ceiling of 23,000 EUR/year or less than other income sources.

French: Location saisonniere

Short-term furnished rental (nightly, weekly) to transient guests. Income is taxed as BIC (business income, micro or real regime). The micro-BIC regime offers a 50% flat deduction (71% for classified tourist rentals). Registration with the town hall and a registration number are required in certain cities.

French: Loi PACTE

A law dated May 22, 2019 on business growth and transformation. It created the PER (Plan d'Epargne Retraite / Retirement Savings Plan) to replace former retirement products (PERP, Madelin, PERCO, Article 83). It also facilitated transfers between old and new products and capped transfer fees at 1% (free after 5 years).

French: Loi Sapin 2

A law dated December 9, 2016 that introduced the possibility for the HCSF (High Council for Financial Stability) to temporarily limit withdrawals, fund switches, and policy advances on life insurance contracts in the event of a serious threat to the financial system. This safeguard measure has never been activated to date.

French: MSCI World

A global stock market index comprising approximately 1,500 large and mid-cap stocks from 23 developed countries. Dominated by the United States (~70%). Historical annualized return of approximately 8-10% with dividends reinvested. It is the benchmark index for diversified global equity investment via ETFs.

French: Neobanque

A 100% mobile bank, with no physical branches, offering banking services via a smartphone app. Examples: Revolut, N26, Lydia. Neobanks often offer innovative services (contactless payment, instant transfers, virtual cards) but limited savings products.

French: NFT (Non-Fungible Token)

A unique, non-interchangeable digital token recorded on a blockchain, representing ownership of a digital asset (image, video, music, virtual item). The NFT market boomed in 2021-2022 before a sharp decline. The taxation of NFTs in France follows the digital assets regime.

French: Nue-propriete

The right of ownership of an asset without the right to use it or receive income from it (which belongs to the usufructuary). In a split beneficiary clause, the bare owners (often the children) recover full ownership upon the death of the usufructuary without additional inheritance tax.

French: OPCI (Organisme de Placement Collectif Immobilier)

A predominantly real estate investment fund that must invest at least 60% in real estate assets and maintain at least 5% in cash. Accessible in life insurance as a unit-linked fund, the OPCI offers a compromise between SCPI (less liquid, higher return) and the euro fund (more liquid, lower return).

French: OPCI (Organisme de Placement Collectif Immobilier)

A predominantly real estate investment fund that must hold at least 60% real estate assets and maintain 5% in cash. More liquid than an SCPI but generally less profitable. Accessible in life insurance as a unit-linked fund.

French: OPCVM

Organisme de Placement Collectif en Valeurs Mobilieres (equivalent to UCITS in English). An investment fund that pools capital from many investors to invest in a diversified portfolio of securities. OPCVMs include SICAVs and FCPs. They make up the majority of unit-linked funds available in life insurance.

French: Or physique

Investment in gold in the form of bars, small bars, or coins (Napoleon, Krugerrand, Maple Leaf). Physical gold is a safe-haven asset in times of crisis. French taxation offers two options: a flat tax of 11.5% on the sale price, or the capital gains regime (36.2%) with a 5% annual reduction after 2 years (full exemption after 22 years).

French: Ordre de bourse

An instruction given to a broker to buy or sell securities on the stock exchange. The main types are: market order (executed immediately at the best available price), limit order (executed at a set maximum/minimum price), and stop order (triggered when the price reaches a threshold).

French: Part de SCPI

A unit of co-ownership in an SCPI, representing a proportional share of the real estate portfolio. The share price is set by the management company. Income (rent) is distributed quarterly in proportion to the number of shares held. The enjoyment period is typically 3 to 6 months.

French: PASS (Plafond Annuel de la Securite Sociale)

A reference amount used to calculate numerous benefits and social contributions. In 2026, the PASS is 46,368 EUR. It is notably used to calculate the PER deduction ceiling (10% of income capped at 8 PASS, i.e. a maximum ceiling of 35,194 EUR).

French: PEA (Plan d'Epargne en Actions)

A tax-efficient wrapper for investing in European equities with a deposit ceiling of 150,000 EUR. After 5 years, only social charges of 17.2% apply to gains (income tax exempt). The PEA complements life insurance for diversifying savings.

French: PEA (Plan d'Epargne en Actions)

A tax-efficient wrapper for investing in European equities with a deposit ceiling of 150,000 EUR. After 5 years of holding, gains are exempt from income tax and only bear social charges of 17.2%. The PEA is the reference wrapper for long-term stock market investing in France.

French: PEE (Plan d'Epargne Entreprise)

An employee savings scheme allowing employees to build a securities portfolio with employer assistance (top-up contributions). Savings are locked for a minimum of 5 years. Gains are exempt from income tax and only bear 17.2% social charges upon withdrawal.

French: PEL (Plan d'Epargne Logement)

A regulated savings product designed to finance a real estate project. Rate of 2.25% for PELs opened since 2024. Ceiling of 61,200 EUR. Minimum duration of 4 years. Since 2018, interest on new PELs is subject to the 30% flat tax. The PEL grants the right to a preferential-rate mortgage.

French: PER (Plan d'Epargne Retraite)

A retirement savings product created by the PACTE law in 2019. It comes in three forms: individual PER, company collective PER (PERECO), and mandatory PER. Voluntary contributions are deductible from taxable income. Savings are locked until retirement (except for early release cases). Withdrawal can be as a lump sum, annuity, or combination of both.

French: PERCOL (PER Collectif Obligatoire)

A Mandatory Collective Retirement Savings Plan, successor to the Article 83 scheme under the PACTE law. Set up by the employer for certain categories of employees, it receives mandatory contributions. Withdrawal is as a life annuity (except for early release cases). Contributions are deductible from taxable income.

French: PERECO (PER d'Entreprise Collectif)

A company collective retirement savings plan, successor to the PERCO under the PACTE law. Open to all employees of the company, it receives profit-sharing, incentive bonuses, and employer top-up contributions. Withdrawal as lump sum or annuity at retirement. Early release possible for the same cases as the individual PER.

French: PFU (Prelevement Forfaitaire Unique)

The default tax regime since 2018, also called 'flat tax.' It applies to investment income at an overall rate of 30% (12.8% income tax + 17.2% social charges). For life insurance after 8 years, the income tax rate is reduced to 7.5% (instead of 12.8%) for premiums below 150,000 EUR, after applying the annual allowance.

French: Pinel

A property tax relief scheme granting an income tax reduction for purchasing a new-build property intended for rental. Reduction of 9% over 6 years, 12% over 9 years, or 14% over 12 years (2024 rates). Investment ceiling of 300,000 EUR/year. Rent and tenant income conditions apply depending on the geographic zone.

French: Plafond de deduction PER

The maximum amount deductible from taxable income for PER contributions. It equals the higher of 10% of professional income from the prior year (capped at 10% of 8 PASS = 35,194 EUR in 2026) and 10% of PASS (4,636 EUR in 2026, minimum floor). Unused ceilings from the previous 3 years can be carried forward.

French: Plafond de livret

The maximum deposit amount allowed on a savings account. Once the ceiling is reached, only accrued interest can push the balance above this limit. Examples: 22,950 EUR for the Livret A, 12,000 EUR for the LDDS, 10,000 EUR for the LEP.

French: Plafonnement des niches fiscales

A mechanism capping the total tax benefits (reductions and credits) at 10,000 EUR per year per household. Certain schemes benefit from an increased ceiling: 18,000 EUR for the Girardin industrial scheme and overseas SOFICAs. The PER and life insurance are not affected by this ceiling.

French: Plus-value mobiliere

A gain realized upon selling a financial security (stock, bond, fund share) at a price higher than the purchase price. In a standard brokerage account, capital gains are subject to the 30% flat tax. In a PEA after 5 years, they only bear 17.2% social charges.

French: Prelevement de solidarite

A 7.5% contribution forming part of the 17.2% social charges applicable to investment income. Created to replace several former contributions, it is added to the CSG (9.2%) and CRDS (0.5%).

French: Prelevements sociaux

A set of social contributions levied on investment income, at an overall rate of 17.2% since 2018. They consist of CSG (9.2%), CRDS (0.5%), and the solidarity levy (7.5%). In life insurance, they apply to gains upon withdrawal or annually on the euro fund.

French: Primes

Amounts paid by the policyholder into their life insurance policy or PER. A distinction is made between the initial premium (opening deposit), additional premiums (ad hoc deposits), and scheduled premiums (regular deposits). Upon withdrawal, the premium portion is returned without taxation.

French: Profil de risque

A categorization of an investor's appetite for risk, determining how their savings are split between safe and risky assets. Typical profiles are: conservative (mostly euro fund), balanced (50/50), and aggressive (mostly unit-linked funds). The profile depends on the investment horizon, financial situation, and tolerance for market fluctuations.

French: Quotient familial

A taxation mechanism that divides taxable income by the number of shares in the tax household before applying the progressive tax scale. A single person has 1 share, a couple has 2 shares, each child adds 0.5 shares (1 full share from the 3rd child onward). The cap on the family quotient benefit is 1,759 EUR per half-share in 2026.

French: Quotient familial (detail)

A system that divides taxable income by the number of shares before applying the progressive income tax scale. Number of shares: 1 for a single person, 2 for a couple, +0.5 per child (1 full share from the 3rd child). The cap on the benefit is 1,759 EUR per half-share in 2026.

French: Rachat

Withdrawal of all or part of the savings from a life insurance policy. A partial withdrawal allows recovering a sum while keeping the policy open. A full surrender closes the policy. Only the gain portion contained in the withdrawal is subject to taxation.

French: Rachat partiel

Withdrawal of a portion of the savings from a life insurance policy while the policy remains active. The withdrawn amount is split into a premium portion (not taxable) and a gain portion (taxable). A partial withdrawal preserves the policy's tax seniority.

French: Rachat total

Withdrawal of the entire savings from a life insurance policy, resulting in the permanent closure of the policy. All gains are then subject to taxation. A full surrender causes the loss of the policy's tax seniority.

French: Rachats programmes

Automatic regular withdrawals from a life insurance policy. This strategy allows building a supplementary income, for example in retirement. By spreading withdrawals over several years, you optimize the use of the annual allowance of 4,600 EUR / 9,200 EUR after 8 years.

French: Reduction vs Credit d'impot

A tax reduction (reduction d'impot) decreases the tax owed (if the tax is less than the reduction, the excess is lost). A tax credit (credit d'impot) is refunded by the tax authorities even if its amount exceeds the tax owed. Most tax relief schemes (Pinel, FCPI, FIP) are reductions, not credits.

French: Regle de 72

A rule of thumb for quickly estimating the time needed to double your capital. Divide 72 by the annual rate of return: at 4% per year, capital doubles in roughly 18 years (72 / 4 = 18). At 8%, in 9 years. It is a practical tool for assessing the power of compound interest.

French: Rendement

The financial performance of an investment, expressed as a percentage of the invested capital. In life insurance, a distinction is made between gross return (before fees) and net return (after management fees). The euro fund return is announced annually by the insurer. Unit-linked fund returns depend on market performance.

French: Rendement locatif

A profitability indicator for a real estate investment. Gross yield = annual rent / purchase price. Net yield deducts charges (property tax, insurance, maintenance, management). Net-net yield also factors in taxation. A good gross rental yield ranges from 4% to 8% depending on the city.

French: Rendement reel

The return on an investment after deducting inflation. An investment at 4% gross with 2% inflation offers a real return of 2%. The real return is the only relevant indicator for measuring the effective wealth growth of the investor over the long term.

French: Rente viagere

Income paid periodically (monthly or quarterly) until the death of the beneficiary. In the PER, the life annuity is one withdrawal option: the accumulated capital is converted into an annuity at a rate depending on age. The annuity can be reversionary (paid to the surviving spouse).

French: Retraite progressive

A scheme allowing reduced professional activity while receiving a fraction of the retirement pension. The employee switches to part-time (between 40% and 80% of full-time) and receives a pension proportional to the time not worked. Available from age 60, subject to conditions.

French: Revenus fonciers

Income from renting out unfurnished (bare) real estate. Taxed at income tax rates + 17.2% social charges. Two regimes available: micro-foncier (30% flat deduction, if income < 15,000 EUR/year) or regime reel (deduction of actual expenses).

French: Reversion

An option allowing the payment of an annuity to the surviving spouse after the death of the holder. In a PER, the reversion option reduces the initial annuity amount (typically by 20 to 40%) but protects the spouse. The usual reversion rate is 60% or 100%.

French: S&P 500

An American stock market index comprising the 500 largest publicly traded companies in the United States. Considered the barometer of the American economy. Historical annualized return of approximately 10% with dividends reinvested over the long term.

French: SCI (Societe Civile Immobiliere)

A civil company whose purpose is holding and managing real estate assets. In life insurance, SCIs are accessible as unit-linked funds and allow diversified real estate investment with greater liquidity than SCPIs.

French: SCI (Societe Civile Immobiliere)

A civil company holding and managing real estate assets. In life insurance, SCIs are accessible as unit-linked funds with greater liquidity than SCPIs. Yield-focused SCIs offer a compromise between euro funds and SCPIs.

French: SCI patrimoniale

A Civil Real Estate Company created to hold, manage, and transfer family real estate assets. The SCI facilitates transfer through share donations (with a 10 to 20% discount) and allows flexible management of assets. It may opt for corporate tax (IS) or remain under income tax (IR).

French: SCPI (Societe Civile de Placement Immobilier)

A collective investment vehicle allowing investment in rental real estate without direct management. Accessible via life insurance as unit-linked funds, SCPIs offer returns of 4 to 6% per year. Investing through life insurance provides the tax benefits of the policy, but the real estate portion is subject to the IFI (real estate wealth tax).

French: SCPI (Societe Civile de Placement Immobilier)

A collective investment vehicle for investing in commercial or residential rental property without direct management. Average yield of 4.5% in 2024. Subscription fees of 8 to 12%. Accessible from a few hundred euros. Also known as 'pierre-papier' (paper real estate).

French: SIIC (Societe d'Investissement Immobilier Cotee)

A listed real estate company, the French equivalent of Anglo-Saxon REITs. SIICs are exempt from corporate tax provided they distribute at least 85% of their rental profits and 50% of their capital gains. They allow investing in real estate with the liquidity of a listed stock.

French: SOFICA

A company financing the film and audiovisual industry. Income tax reduction of 30% (48% with a distribution commitment) on the amount invested, capped at 18,000 EUR and 25% of net global income. Lock-up period of 5 to 10 years. Risk of capital loss.

French: Souscripteur

The person who enters into the life insurance contract with the insurer. The policyholder makes the deposits, designates the beneficiary(ies), and can request withdrawals or fund switches. The policyholder can be different from the insured person (the person whose death triggers the payout).

French: Stablecoin

A cryptocurrency whose value is pegged to a stable asset, usually the US dollar (1 stablecoin = $1). Examples: USDT (Tether), USDC (Circle), DAI. Used for trading, transfers, and as a safe haven between two crypto investments without converting back to fiat currency.

French: Staking

The act of locking up cryptocurrencies to participate in transaction validation on a Proof-of-Stake (PoS) blockchain. In return, the staker receives rewards (yields of 2 to 15% depending on the crypto). Ethereum transitioned to PoS in 2022. Staking income is taxable in France.

French: Taux d'occupation

The percentage of total space in a real estate portfolio that is actually occupied and generating rent. For an SCPI, the average financial occupancy rate (TOF) is approximately 93-95%. A high TOF is an indicator of good management quality.

French: Taux technique

The anticipated interest rate used by the insurer to calculate the initial amount of the life annuity. The higher the technical rate, the higher the initial annuity, but future revaluations will be lower. Currently capped by regulation at 60% of the TME (Average Government Bond Rate).

French: TME (Taux Moyen des Emprunts d'Etat)

The average yield on long-term government bonds, published monthly. It serves as a reference for calculating the maximum technical rate for life annuities and for valuing certain insurer commitments.

French: TMI (rappel patrimoine)

Marginal Tax Bracket (TMI): the rate applied to the last euro of income. In 2026: 0% (up to 11,497 EUR), 11% (11,497 to 29,315 EUR), 30% (29,315 to 83,823 EUR), 41% (83,823 to 180,294 EUR), 45% (above). The TMI is the key criterion for evaluating the benefit of the PER, tax relief schemes, and the choice between flat tax and progressive scale.

French: TMI (Tranche Marginale d'Imposition)

The tax rate applied to the highest bracket of income. In 2026, the brackets are: 0% (up to 11,497 EUR), 11% (11,497 to 29,315 EUR), 30% (29,315 to 83,823 EUR), 41% (83,823 to 180,294 EUR), 45% (above). The TMI is essential for evaluating the benefits of the PER (deduction upon entry) and choosing between flat tax and progressive scale.

French: TMI et taux moyen

The TMI (marginal tax bracket) is the rate applied to the last euro of income, while the average rate is the ratio of total tax to taxable income. A taxpayer at a 30% TMI actually pays a much lower average rate (often 10 to 15%) thanks to the progressive scale and the family quotient.

French: Transfert

An operation allowing the transfer of savings from one retirement product to another. Since the PACTE law, transferring from a former PERP, Madelin, or Article 83 to a PER is possible. Transfer fees are capped at 1% of the balance and are waived after 5 years of holding.

French: TRI (Taux de Rendement Interne)

A performance indicator measuring the real profitability of an investment taking into account all cash flows (deposits, withdrawals, fees). The IRR is the discount rate that makes the NPV (Net Present Value) equal to zero. It is more relevant than the gross return because it factors in the timing of cash flows.

French: Triangle de securite

A protection mechanism specific to Luxembourg life insurance policies. Policyholders' assets are legally separated from those of the insurer and deposited with an approved custodian bank, under the supervision of the Commissariat aux Assurances. In the event of the insurer's bankruptcy, policyholders are first-rank creditors (super-privilege).

French: Trimestre valide

The basic unit for calculating retirement insurance duration. To validate a quarter in 2026, you must have contributed on income equivalent to 150 times the hourly minimum wage (approximately 1,747 EUR). Maximum 4 quarters can be validated per year. The required insurance duration for a full pension is 172 quarters (43 years) for those born from 1965 onward.

French: Unites de compte (UC)

Non-capital-guaranteed investment vehicles within a multi-fund life insurance policy. UCs are expressed in fund shares (mutual funds, ETFs, SCPI, etc.) whose value fluctuates with the markets. They offer higher return potential than the euro fund, but with a risk of capital loss.

French: Usufruit

The right to use an asset and receive its income without owning it. In life insurance, splitting the beneficiary clause can assign the usufruct of the capital to the spouse and bare ownership to the children. The usufructuary may use the capital with an obligation to restore an equivalent value.

French: Valeur de rachat

The total amount the policyholder can recover by requesting a full surrender of their life insurance policy. It corresponds to the total savings invested in the euro fund (capital + accrued interest) plus the value of unit-linked funds at the current market price.

French: Versements programmes

Regular contributions (monthly, quarterly) automatically made by direct debit from the bank account into the life insurance policy or PER. They allow investing regularly (DCA), smoothing market entry points, and establishing a savings discipline.

French: Volatilite

A measure of the magnitude of price variations of a financial asset. A highly volatile unit-linked fund experiences significant swings both up and down. Volatility is a risk indicator: the higher it is, the riskier the investment in the short term.

French: Wallet (Portefeuille crypto)

Software or hardware device for storing, sending, and receiving cryptocurrencies. The wallet contains the private keys that prove ownership of assets. Types: hot wallet (connected to the internet, convenient but less secure), cold wallet (offline, e.g. Ledger, more secure).