France Eases Back From Exit Tax

PARIS – France is watering down its punitive tax on the assets of wealthy individuals who leave the country.

The government of France is altering the conditions of its infamous “exit tax” and limiting the conditions under which ex-taxpayers of France are liable to pay a tax on the capital appreciation of their assets.

Previously, individuals who left France, and subsequently transferred their domicile for tax purposes, were liable to face an effective tax rate of 30 per cent on their capital gains for a period of 15 years.

The time limit for the tax has now been shifted to a mere 2 years.

The tax is applicable to individuals who have previously lived in France for 6 consecutive years, and have either a 50 per cent shareholding in a company moved to France or at least EUR 800 000 in bonds and stocks.

The President of France Emmanuel Macron said as early as May this year that he would like to see the tax removed or watered down.

The tax was initially enacted by Macron’s predecessor, Nicholas Sarkozy, and was slated to raise as much as EUR 200 million per year, though it only brought in EUR 70 million in 2017.