Highlights of the week: Collection rises again in life insurance, mortgage credit dynamic despite price hikes, tax audit: More collection, Banque de France launches MOOC on coin


(Image credits: Pixabay – Alexander Stein)

Net inflows into life insurance reached a threshold of €3 billion in January 2022. Mortgage loans remained dynamic despite a slight rise in interest rates. Nearly two-thirds of French people oppose tax reform on inheritance-related life insurance. Rental ceilings that you must not exceed to rent a portion of your primary residence while you are tax-exempt for 2022 have been established. Since March 1, 2022, intermediate maintenance payments have been regular for all judicial divorces. The Tax Administration raised €10.7 billion for tax audits in 2021. The National Institute of Consumers and Banque de France are offering an online course on money and means of payment from March 21, 2022.

index:

  • Life Insurance: €3 billion in net inflows in January 2022
  • Real Estate: Credit remains dynamic despite rising interest rates
  • Succession: 63% of French oppose life insurance reform
  • Renting a main residence: ceilings exempt from tax in 2022
  • Alimony payments: financial intermediation becomes regular
  • Tax audit: 10.7 billion euros raised in 2021
  • Banque de France launched MOOC about money and means of payment

Life Insurance: €3 billion in net inflows in January 2022

Net inflows into life insurance reached a threshold of €3 billion in January 2022, the first since April 2019, according to figures provided by France Assureurs. It results from net inflows of +3.8 billion euros for associated units (UA) and -0.8 billion euros for euro funds. Thus life insurance continues its momentum in 2021, the year in which net inflows reached a level not seen since 2010, at +23.7 billion euros. At the end of January 2022, existing life insurance contracts amounted to €1.871 billion, an increase of +4.3% year-on-year.

Real Estate: Credit remains dynamic despite rising interest rates

The annual growth rate of outstanding mortgage loans remained at a high level in January 2022, at +6.4% according to data published by the Banque de France. The production of new housing loans thus amounted to 23.6 billion euros (18.6 billion euros excluding renegotiations) in January 2022, after 21.7 billion euros in December 2021. Advanced estimates for February 2022 indicate a slight increase in production, to 24.1 billion euros, indicating the Institute . Therefore, mortgage loans remain dynamic despite the slight rise in the average interest rate (1.14% in February 2022 after 1.12% in January 2022).

Succession: 63% of French oppose life insurance reform

While succession is one of the topics discussed in the run-up to the April 2022 presidential election, 63% of French think succession-related life insurance tax reform would be a bad thing. Survey of France Assureurs. Life insurance remains the preferred savings for the French, with 18 million contract holders and 38 million beneficiaries at the end of 2021. The survey shows that the main objectives of this investment are to transfer one’s assets, prepare retirement and give guarantees in the face of future uncertainties.

Renting a main residence: ceilings exempt from tax in 2022

Income from renting or subletting one or more rooms in the main dwelling as furnished can benefit from income tax exemption, provided the rent is determined within reasonable limits. To evaluate this property, two annual rental ceilings per square meter of living space (excluding fees) are established each year. For 2022, 192 euros are set in Ile-de-France and 142 euros in other regions (compared to 191 euros and 141 euros, respectively, in 2021). This tax advantage is held until 2023, when it will be reassessed.

Alimony payments: financial intermediation becomes regular

Since March 1, 2022, the alimony payment service has been standard for all divorce cases (current or future) before a judge. Previously, the intermediate payment by the Family Allowance Funds (CAF) and Social Agricultural Exchanges (MSA) was set up only at the request of a parent. The alimony service reform will be completed on January 1, 2023, when mediation will be automatic for all alimony (judicial divorce, consensual divorce outside the law, etc.). Approximately one million families receive sustenance, the average value of which is 170 euros per month and per child.

Tax audit: 10.7 billion euros raised in 2021

The Tax Administration notified 13.4 billion euros of the adjustment to individuals and companies, i.e. 7.8 billion euros in connection with on-site tax examination (+6% compared to 2019) and 5.6 billion euros related to tax audits on documents (+ 30% compared to 2019), according to figures released For the Ministry of Economy, Finance and Recovery. The revenue from the tax audit amounted to 10.7 billion euros. Nearly half of the examinations conducted in 2021 were performed after analysis of the mass data.

Banque de France launched MOOC about money and means of payment

The National Consumer Institute and Banque de France are offering a free online course (MOOC) starting March 21, 2022 “to better understand the functions of money as well as the role and reactions of banks to secure your transactions and the signs of fraud prevention.” This MOOC contains three modules, the first is about money, the second is about payment methods, both traditional and new, and the third is about how to avoid payment fraud. This online course will be available on the France Université Numérique (FUN) platform for eight weeks.

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