Life Insurance - Taxation of withdrawals

If making a withdrawal after the 8 year period

You have a choice concerning the interest:

Either at the rate of income-tax

Or a 7.5% deduction at source, after an annual tax relief of €4,600 for a single person or €9,200 for a couple (plus social security contributions).

If making a withdrawal during the 8 year period

It is also possible to opt for the income-tax rate or for a deduction at source, at a sliding tax rate:

Between 0 and 4 years: 35% (plus social security contributions of 11%).

Between 4 and 8 years: 15% (plus social security contributions of 11%).