Francois Hollandeââ¬â¢s election
victory is set to spark ââ¬Ëthe third biggest exodus from Franceââ¬â¢. Thatââ¬â¢s the view of many estate agents
who expect Franceââ¬â¢s wealthy to leave the country ahead of the socialist
presidentââ¬â¢s plans to increase taxes for the rich.
And, many London based property
experts believe that the capital is set to benefit from an influx of wealthy
French expats. Keep reading to
learn more about the impact of these overseas property purchases by disgruntled
French residents.
Tax rules set to drive out high earners
New president Hollande plans to
implement a 75% tax rate on earnings over ââ¬1 million (around ã800,000) on top
of a 45% rate for people making ââ¬150,000 or more. He is also expected to raise ââ¬Ëwealth taxesââ¬â¢ on property
assets.
Noel de Keyzer, at the Sloane
Street branch of agents Savills, said: “Even before the French election, I
spoke to several affluent French nationals about their fears of what Hollande
proposed, and they all said that we will see an increase in French nationals
buying during the next quarter in prime central London.”
James Pace, head of Knight
Frank’s Chelsea and South Kensington offices, agrees. He said that one French financier told him Hollande’s
arrival would mark ââ¬Ëthe third biggest exodus from France – the first being the
Revolution and the second when Mitterrand [the last socialist president] got
into powerââ¬â¢.
London the preferred destination for French clients buying luxury
overseas property
French clients looking for
overseas homes often turn to Switzerland, Belgium or the UK. However, many experts believe that
London will be the preferred destination should Hollande implement harsh tax
rules for the rich.
David Blanc, a partner at wealth
manager Vestra Wealth, said: ââ¬ÅIn the UK you have the largest community of
French people outside France and this is getting bigger every year as it is
becoming easier to settle in the UK for a French family.
“London is becoming the
number one choice for relocating French people for many reasons. A very welcoming business and tax
environment, a vibrant international city, great entertainment, very good
French and international schools, and other services targeted at the French
community like French doctors, French food.”
Author : Nick
Marr
