The official figures on tax exile testify to the fact that every year, when France introduced a Solidarity Tax on Wealth (ISF) and taxed capital at the income level, there was a certain number of “wealthy” French (with an annual income of more than 100,000 EUR) left the country. Their number was a few hundred taxpayers a year.
Transformation ISF in IFI (Real estate wealth tax) made France more attractive. Now the movement has reversed. Exiled taxpayers abroad for tax reasons are more likely to want to return to France.
This is not a specifically French problem. All European countries with high taxes suffer from the departure of the rich, Usually to Switzerland or other countries with lower taxes.
Dozens of millionaires and billionaires left Norway after the introduction of a new tax system in November 2022. In recent years, Some countries have tried too To attract the “little rich”. Portugal has established itself as one of the favorite destinations for French retirees, in particular thanks to the ten-year income tax exemption.
Another problem for the ISF was the minority corporate shareholders who sometimes had to sell their assets to pay this tax.
>> A special edition of Lenglet-Co, a weekly podcast presented by François Lenglet, which gives you the keys to understanding everything about economic developments and changes, in Europe and around the world. The journalist also takes the opportunity to debunk many prejudices about the economy.