The new elected French president unveiled a plan to impose a one-off levy on people whose net wealth is higher than €1.3m year, as part of a €7.2bn tax package.

The French government also announced increases in taxation on inheritance, company dividends, stock options and holiday homes.

The plan is to cut France’s deficit target as a percentage of GDP from 5.2% in 2011 to 4.5% in 2012.

The measure is the first step towards the sharp increase in wealth taxation promised by Hollande during the electoral campaign.

The French president said that by 2013 the marginal rate on annual incomes of more than €1m will be raised to 75%.

If implemented the tax could lead to numerous HNWIs leaving the country.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Neighbouring nations, including Switzerland and the UK, have said they are ready to welcome this outflow of capital.

In February 2012, in a statement addressed to French financial workers, London mayor Boris Johnson said: "Bienvenue à Londres. This is the global capital of finance. It’s on your doorstep and if your own President does not want the jobs, the opportunities and the economic growth that you generate, we do."



Source: Private Banker International