According to France 24 , around 400-500 residences worth more than one million euros ($1.3 million) have recently hit the Paris market–and other French cities are being affected as well.
But it’s not just old or inherited wealth departing France. High tech entrepreneurs are also seeking to escape the French Socialists’ hefty taxes on capital gains that are also slated for implementation. Many of these tech entrepreneurs heavily invested their own money and took puny salaries, hoping to later sell the firm for a handsome profit. Many feel that the incentive to build a business (and an employment base) has been taken away–especially with the marginal tax rate of 62.21 percent on stock sales.
So where are these departing entrepreneurs, business people and employers moving? Topping the list are London, Geneva, New York, Canada, Singapore and Israel. Brussels, Belgium though, appears attract established wealth that have already sold their assets and seek to take advantage of Belgium’s more favorable taxation on trusts–which can pass assets onto children and family.
The exodus of wealth from France has not yet been fully felt yet, and there are foreign buyers shopping luxury properties for sale there. Still, France 24 reports that in the last few months the “price for large Paris apartments had slid by five percent.”
The migration of these business people and entrepreneurs to other locations will surely not help France’s fiscal problems, because there’s always the possibility or probability that Atlas will simply…shrug and move elsewhere.
Excellent commentary on the plight of countries with high taxes!
Sounds like France & California have a lot in common!
Gena: I think so–but at least California taxes haven’t hit the stratosphere (yet).