France’s Tax Crackdown Targets Wealthy French Expats

How France’s New Tax Plan Impacts Global Mobility

A Major Shift in French Taxation Policy

In a strong effort to fix its strained public finances, France, is moving forward with a controversial plan to impose a global tax on its wealthy citizens who live abroad. This move is similar to the US’s citizenship-based tax system. The proposal, backed by a left-wing party, would require high-earning French nationals to continue paying French taxes for ten years after moving to a low-tax country. With a growing national debt and a large budget deficit, the French government is searching for every way possible to increase revenue. The proposal specifically targets nationals who earn more than €235,500 and relocate to a country where taxes are at least 40% lower than in France. For high-net-worth individuals, entrepreneurs, and global mobility experts, this is a major consideration for tax migration planning.

New Taxes and Scrutiny for French Residents and Businesses

Beyond targeting its expatriate population, France has introduced other tax measures to address its budget shortfall. For 2025, a new tax called the “differential contribution on high incomes” (CDHR) is being implemented. This tax ensures that resident taxpayers with annual income over €250,000 pay a total income tax rate of at least 20%. This directly affects taxpayers whose income comes mainly from capital gains or investments, which are usually subject to a 30% flat tax. On the corporate tax side, the standard rate remains at 25% for larger companies, with a reduced 15% rate for small and medium-sized businesses on profits up to €42,500.

Increasing Taxes on Tech Giants

French lawmakers are also taking decisive action to tax tech giants more heavily. A proposed amendment would raise the digital services tax on these large companies from 3% to 15%. Furthermore, it would raise the global revenue threshold, protecting smaller national players from the scope of the tax. Most political groups in the country support this increased digital tax. This measure is intended to show that France is prepared to act independently to increase revenue from American tech giants, rather than waiting for slow European agreements.

This move to significantly increase the digital services tax has prompted immediate reaction from the US. President Donald Trump has warned he would strike back against any measure that unfairly targets US companies. Republican lawmakers in the US have promised to work with the administration to pursue aggressive retaliatory action if France moves forward with raising these taxes. This creates a risk of international trade tensions, which could affect the business operations of companies in both the US and France.

Worsening Security Concerns in France

These financial pressures come alongside worrying reports about security in France. In October 2025, two major French museums were robbed. In a high-tech daylight heist, thieves stole valuable 19th-century imperial jewelry from the Louvre’s Apollo Gallery. The thieves used power tools and escaped on motorbikes, leading to widespread criticism of the museum’s security. Just hours later, a second museum was robbed, where 2,000 gold and silver coins were stolen. This series of crimes, carried out with “great expertise,” adds to general public concern about safety and security in the country.

Political Instability Adds to Uncertainty

The negative news is not limited to security and taxes. Former French President Sarkozy recently began a prison sentence after being convicted of criminal conspiracy for a scheme related to financing his 2007 presidential campaign. This political instability, combined with the new tax raids and security incidents, creates a challenging atmosphere. For international investors and high-net-worth individuals, political stability is a major factor when deciding where to place assets or establish a second residency.

Strategic Planning for French Nationals is Essential

The combination of higher taxes for wealthy residents, the risk of international trade retaliation, and high-profile security concerns means that France’s traditional appeal for high earners is under pressure. For those who can relocate, the “targeted universal tax” makes tax migration a much more urgent consideration. You must plan carefully to avoid being caught by this new global tax while still in the process of leaving.

How RELOC8 ONLINE’s Support Can Help You

Understanding the complex and changing tax rules in France, especially the “targeted universal tax” on expats, requires expert guidance. We can help you assess the impact of the new Tax Structure on your personal and corporate finances. We provide specialized advice on compliant tax migration strategies to countries that offer lower taxes and greater stability.

Optimize Your Tax Strategy Now

If you are a high-net-worth individual, entrepreneur, business owner, digital nomad, or IT professional, and you are affected by France’s tax changes, we can help you build custom strategies to protect your wealth and achieve your global mobility goals. Optimize your tax strategy and redefine your international presence. Start Your Journey Today. Right Place, Right Tax, Right Now. Book a Consultation.

For more updates and guidance, reach out to Reloc8 Online to make your next move seamless. Contact us today to get all the relevant information on relocating to any of the destinations and tax regulations mentioned above.

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