Key facts
- France recorded a net loss of 800 millionaires in 2025.
- Each departing millionaire took an average of €5 million in personal assets.
- Total capital flight from departing millionaires is estimated at €4 billion.
- A proposed 2% annual wealth tax on fortunes over €100 million was defeated.
- A 20% tax on luxury assets within certain family holdings was introduced for 2026.
- France has a history of wealth taxes, including the ISF and the 'Super Tax'.
France is experiencing a net outflow of wealthy individuals, with 800 millionaires leaving in 2025, taking an estimated €5 million each in personal assets. This trend, while representing a small fraction of the country's affluent population, raises concerns about capital flight and its outsized economic impact due to the wealth, business ownership, and tax contributions of high-net-worth individuals.
Several factors contribute to this migration. Political instability, marked by frequent changes in prime ministers and budget crises, creates uncertainty. The potential for Marine Le Pen to win the 2027 presidential election has further unsettled businesses, despite reassurances from her party. Economists question the feasibility of her party's spending commitments within France's fiscal constraints and EU rules.
A significant driver is the ongoing campaign to tax the wealthy. A proposal by economist Gabriel Zucman for a 2% annual tax on fortunes exceeding €100 million, including an 'exit tax' for those relocating, was ultimately defeated in the National Assembly. Instead, the 2026 Finance Law introduced a 20% tax on luxury assets like yachts and private jets held within passive family holdings valued at €5 million or more.
Economists like Thomas Piketty argue that the risks of capital flight from wealth taxes are often exaggerated and that international cooperation could enhance their effectiveness. However, critics contend that even a small number of departing entrepreneurs and investors can disproportionately affect economic growth through business ownership, venture funding, and job creation.
France has a history of wealth taxation, including the Solidarity Tax on Wealth (ISF) introduced in 1982, which was later replaced by the Real Estate Wealth Tax (IFI) in 2017. The ISF was associated with significant capital flight and reduced GDP growth. François Hollande's 'Super Tax' of 75% on incomes over €1 million was adjusted to a company-level tax and expired after raising less revenue than projected. During this period, prominent figures like Bernard Arnault and Gérard Depardieu relocated.
Destination countries are actively attracting wealthy migrants. The UAE benefits from its lack of income tax. Italy has become a major recipient with its 15% flat-tax regime for qualifying foreign residents. Switzerland and Monaco are also popular due to favourable tax arrangements and no personal income tax, respectively. Portugal's Non-Habitual Resident tax regime, though recently reformed, has also attracted many.