French Rich People Think About Leaving: Looking at New Places to Live
Many wealthy people in France are thinking about moving to other countries. Why? They’re worried about paying more taxes if François Hollande, a Socialist politician, becomes president. This isn’t new – it happened before in the 1980s when another Socialist became president. But now, the world is different, and rich people have more choices about where to go.
Even before Hollande, the current president, Nicolas Sarkozy, made rich people pay more taxes. He got rid of a rule that said no one should pay more than half their money in taxes. But Hollande wants to do more. He says he wants to make things fairer, but rich people are scared they’ll lose too much money.
Hollande wants to make people who earn a lot pay 45% in taxes instead of 41%. He also wants to change rules about inheritance taxes and maybe increase a special tax on wealth. This is making many rich people think seriously about leaving France.
Some experts who help rich people with their money say more and more people are asking about moving away. Stéphane Jacquin, who works at a big bank, says he’s getting lots of questions about how to move to other countries.
In the past, rich French people often moved to nearby places like Switzerland, Monaco, Belgium, or the UK. These places have lower taxes and are close to France. Famous people like Johnny Hallyday, a rock star, and Laetitia Casta, a model, have already moved to some of these places.
But now, two new places are becoming popular: Dubai and Marbella.
Dubai is a city in the United Arab Emirates. It’s becoming more interesting for rich French people because:
1. There’s no income tax
2. It’s very luxurious
3. More and more French people are already living there
4. It’s good for business
Marbella is a city in Spain. It’s also getting more attention because:
1. Taxes in Spain are lower than what Hollande wants for France
2. It has nice weather and beaches
3. It’s not far from France
4. Close to France culturally
The people thinking about leaving are usually very rich – worth more than 10 million euros. They include business owners, entrepreneurs, and famous people.
If many rich people leave, it could be bad for France. The country would lose money from taxes, and it might also lose smart people who create jobs. Some people, like Serge Dassault, a rich businessman, say this is already happening and will get worse if Hollande becomes president.
But Hollande’s team says people are overreacting. They say their plans are about fairness, not about taking all the rich people’s money. They remind people that in 1981, when the first Socialist president was elected, some thought it would be a disaster, but it wasn’t that bad.
France has tried to make it harder for people to leave by creating an “exit tax.” This means people have to pay some taxes even before they sell their stuff and move away. But some experts think this might actually make more people want to leave.
The possibility of rich people leaving is affecting the housing market too. Some rich people are thinking about selling their expensive homes in France. At the same time, more French people are looking at buying homes in other countries.
No one knows exactly what will happen. It depends on what Hollande actually does if he becomes president, and how the world economy changes. The European Union might try to make taxes more similar across all countries, which could change things.
Also, as more countries try to attract rich people, France might have to change its plans to keep people from leaving. In today’s world, it’s easier for rich people to move and do business in different countries.
In the end, this is a tricky problem. Some people think it’s right for rich people to pay more taxes to help everyone. Others worry it will hurt France’s economy if too many rich people and business owners leave. What happens in France could affect other countries too, as they think about their own tax rules.
The fact that places like Dubai and Marbella are becoming popular shows how the world is changing. Rich people have more choices now about where to live and do business. As France tries to figure out what to do, many people will be watching to see what happens and how it might change things in Europe and beyond.
Reach out to 3SA Estate if you want to look into options in both Dubai and in Marbella. We are here to help you.
