Paris, France – Wealthy individuals in France are preparing for potential tax increases and changes in tax policies by contemplating relocation to other countries like Italy, Switzerland, and Spain. The uncertainty arises from the upcoming snap election called by President Emmanuel Macron, with far-right and leftwing parties leading in the polls.
Experts in law, tax advisory, and wealth management have reported an increase in inquiries from concerned clients regarding the safety of their assets in France. The potential reinstatement of a wealth tax, new tax policies, and the fear of market disruptions following the election have led individuals to consider moving their investments or assets elsewhere.
If the far-right Rassemblement National or the leftwing Nouveau Front Populaire were to win the election, significant changes in tax policies and wealth taxation could be expected. In particular, the NFP’s aggressive tax program has raised concerns among the wealthy in France, with worries about the implementation of a wealth tax and higher income taxes.
President Macron’s reforms introduced a flat tax rate on capital gains, dividends, and interests, a move favored by investors and entrepreneurs. However, the potential for retrospective tax rule changes has left individuals uncertain about the future tax implications on their investments.
The NFP’s proposal to increase wealth and inheritance taxes, along with imposing higher income tax rates and exit taxes, has sparked further concerns among France’s wealthiest families. The possibility of a one-off wealth tax and a return to extreme tax rates reminiscent of previous administrations have led some to explore relocation options.
Wealthy individuals are now considering relocating to countries with more favorable tax regimes, such as Italy, Switzerland, and Spain. The prospect of a tax residency in Italy, where foreign income can be exempt from taxation for a flat fee, has attracted attention from those looking to secure their wealth under a more stable tax environment.
As the election approaches, individuals are weighing their options carefully, with some taking proactive steps to establish tax residency in other countries preemptively. The potential for significant tax changes in France has prompted a reassessment of financial strategies and a consideration of long-term tax implications.
Overall, the looming election has created a sense of unease among France’s wealthy individuals, leading them to seek out alternative tax jurisdictions and develop contingency plans in response to the uncertain political landscape.