Looming tax hikes by France’s new socialist government have triggered an exodus of the Gallic super-rich to ‘wealth-friendly’ nations like Britain and Switzerland. The latest estate agency figures have shown large numbers of France’s most well-heeled families selling up and moving to neighbouring countries.
Many are fleeing a proposed new higher tax rate of 75 per cent on all earnings over one million euros. (£780,000)
The previous top tax bracket of 41 per cent on earnings over 72,000 euros is also set to increase to 45 per cent.
Sotheby’s Realty, the estate agent arm of the British auction house, said its French offices sold more than 100 properties over 1.7 million euros between April and June this year – a marked increase on the same period in 2011.
Alexander Kraft, head of Sotheby’s Realty, France, said: “The result of the presidential election has had a real impact on our sales.
“Now a large number of wealthy French families are leaving the country as a direct result of the proposals of the new government.
“These properties are then bought up by foreign investors looking for a stable real estate market like France to invest in.
“It shows the high-end property market is holding up very well, even in these difficult times.”
Gilles Martin, a Swiss tax consultant, reported the same trend. “Since the socialists came to power in France, I have been deluged with inquiries from rich French people who would rather pay their tax in Switzerland,” he told Switzerland’s 20 Minutes newspaper.
A report earlier this year by London estate agents also showed France’s richest people were heading to Britain to escape new higher taxes.
Inquiries from wealthy French for London homes worth more than five million pounds soared by 30 per cent in the first three months of this year, UK estate agency statistics showed.
And interest in homes worth between one and five million rose by 11 per cent, it was found.
British estate agent Knight Frank said the tax plans had sent French interest in luxury London homes rocketing.
Liam Bailey, Knight Frank’s global head of residential research, said: “It is too early to see the impact of the proposed wealth taxes in France in terms of actual purchases in London.
“But there is strong evidence from our web search statistics.
Socialism = Killing the Golden Goose.
But when the Goose flies Socialism dies.
I rarely say I told you so, it just doesn’t sound nice, but I will make an exception here. Except, I predicted a similar exodus of wealthy Americans when the US begins taxing them at the rate Socialism requires. It is called Wealth Redistribution. The US allows you to have two passports with certain countries, don’t argue this point I have two passports and always carry both of them. However, Obama’s IRS wants dual citizens to pay taxes in both countries, but in the past, if you paid in one country, that was good enough, but now your children must pay in both countries, eve if they have never stepped inside the US. Surprise, many people like the lifestyle their hard work or inheritance affords them. Many successful Canadians/US citizens are dropping their US citizenship. You might say so what, who cares, but this represents fortunes in potential investment that will never again be available to the US. The Socialist in their insatiable desire for other people’s money slowly limits itself to less and less capital. Will Americans leave the US, Canada has very Liberal immigration policies for people with capital. Oh and there might be the difference, they realize they need capital: taxed money is dead money, it has a residual ever decreasing dynamic effect on the economy. Capital on the other hand is dynamic, providing the opportunity for growth, even Jobs. What a unique concept, a dynamic economy with the specter of jobs and the possibility of growth, don’t let Obama’s team get ahold of the information. It is top secret.
And possibly the French are saying good riddance to the free-loaders—a thought that many Americans feel about their ex-patriots. (We do not all support idle wealth as an ideal, like conservatives.) Now they can support the country as tourists.
When we realize how few wealthy taxpayers leaving it takes to totally destroy the tax base we know this is NOT going to bode well for France’s future.
Since Obama took office and New York raised its state and local taxes there has been a net loss of income of over $1 billion to the government from NY taxpayers.
Same with California only the money lost is more.
Michigan, too.
See, in the USA we have other STATES where we can go.
But France is like a state.
French people who have money have to get out of the country of France to escape its tax policies.
In 2003 there were 575,000 Jews in France.
Since 2004 about 30,000 of them have left, on average, every year.
255,000 of them are gone ….if you accept 15,000 so far this year….no stats for this year.
Even accounting for new Jewish babies in France that is almost 1/2 of them gone.
Liberal1… the HIGH TAX RATE PAYERS were “freeloaders”??? Only a LIBERAL, could utter such an ASININE statement!!
The SAME is happening HERE… in NYC for example… MARYLAND, has had 30,000 people Leave that state, for the SAME REASON. Those are a few examples in recent news… so Liberal one.. remove head from Derriere, look about, and GET some REALITY.. you NEED a DOSE!