Bloomberg Predicts Possible Mass Emigration of Wealthy French Individuals

In the recent parliamentary election, the left-wing coalition that emerged as victor vowed to impose heightened taxes on the affluent.

Bloomberg reported last Friday that due to political instability and the imminent threat of increased taxes triggered by the recent parliamentary election, many of France's wealthiest individuals may contemplate moving out of the country. Wealth managers cited that the absence of an outright majority from the election resulted in a hung parliament, however, a left-wing alliance managed to secure the majority of seats.

A multitude of wealth advisors shared that their clients, in response to these political changes, have already initiated the transportation of capital overseas while exploring alternatives for expatriation. The prevalent concern among most is the potential passage of proposals such as steep taxes, as put forward by some parties during their campaigns despite no clear victory from the radical right or left in the election.

"High-earning newcomers, including several executives who relocated to France in the wake of Brexit, are now seeking advice on defensive strategies against these proposed tax changes," expressed Xenia Legendre, a managing partner at the Paris-based law firm Hogan Lovells.

The parliamentary majority, the New Popular Front (NFP), made promises during its campaign to impose excess profit tax on corporations and reintroduce a wealth tax targeted at high net worth individuals. This direction is in stark contrast to the affluent-friendly policies advocated by President Emmanuel Macron, earning him the moniker "president of the rich".

Emmanuel Angelier, the principal at wealth management firm La Financiere d’Orion, forecasted the consequences, “If extreme policies implemented, those who can afford to relocate will do so, resulting in France losing its appeal to foreign investors and the wealthy.”

Interestingly, Julien Magitteri, a private wealth advisor at Barnes Family Office by Côme, revealed that certain individuals began shifting funds out of France ahead of the second round of voting. The preferred destinations for this exodus are primarily Switzerland and Luxembourg, with wealth handlers also citing Italy, the US, Dubai, and Singapore as potential alternatives.

France is the residence of some of the planet's wealthiest individuals, such as Bernard Arnault, CEO of luxury goods firm LVMH and Europe's richest man; Francoise Bettencourt Meyers, the global heiress of beauty conglomerate L’Oréal; and the Wertheimer brothers, who supervises the Paris-based fashion brand Chanel.

A poll carried out by Elabe earlier in the week yielded the results that seven out of ten French citizens express dissatisfaction at the election results and the makeup of the renewed National Assembly, on the grounds of France being "ungovernable."

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Alejandro Jose Martinez for TROIB News