A new proposal in France to introduce a US-style global tax on high-earning expatriates has sparked concern among French nationals living in Monaco, one of the most popular destinations for those leaving France for lower-tax jurisdictions…
The plan, advanced by Jean-Luc Mélenchon’s La France Insoumise party, would require wealthy French citizens to continue paying taxes to France for up to ten years after relocating abroad. The measure, approved by France’s finance committee last week, targets individuals earning more than €235,000 annually who have resided in France for at least three of the past ten years and have since moved to a country with a tax rate 40 percent lower than France’s.
If implemented, the legislation could have significant implications for Monaco’s large community of French expatriates, many of whom have settled in the Principality for its fiscal advantages and high quality of life. Economists say the proposal is driven by France’s deepening deficit crisis and mounting political pressure on President Emmanuel Macron’s government to increase revenues without cutting public spending.
While experts believe it is “unlikely” that the plan will pass France’s divided National Assembly, the proposal has nonetheless reignited debate about fiscal sovereignty and mobility within Europe. For now, Monaco’s French residents are watching developments in Paris with keen interest — and perhaps some unease — as the idea of a long-arm tax system inches closer to reality.
Photo by Rishi Jhajharia
