New tax on wealthy in France is driving away the rich, hundreds of homes go up for sale

France’s luxury property market has hit a selling ‘panic’ as millionaires rush to flee the socialist government’s looming tax hikes on the “wealthy”, a leading estate agent has revealed.

Cartoon depicting the Socialist French Republic against the Conservative French Republic from ‘Le Grelot’, 1872. Authored by Alfred Le Petit. Supplied by Bridgeman Art Library via wikimedia commons

More than 400 Paris homes worth more than 1million euros have been put on the market since President Francois Hollande came to power in May – more than double the same period last year.

Many of France’s super-rich want to escape to ‘wealth-friendly’ countries like Britain, Switzerland and Luxembourg

Convinced the rich will no longer be welcome under the next government, many are also moving to neighboring Belgium.

Calls from France to tax lawyers and estate agents in Brussels are increasing in frequency by the week.

Socialist Hollande’s new higher tax of 75 per cent on all earnings over €1million – £780,000 – which will come into force later this year.

They also fear more tough new taxes on moving money overseas and sales of company shares.

Paris estate agent Daniel Feau said: “It’s nearly a general panic. Some 400 to 500 residences worth more than €1million have come onto the Paris market since May.”

“And the profile of those who are leaving has changed, from the idle rich to managers of major international corporations and entrepreneurs who are scared of a marginal tax rate of 62.21 percent on sales of stock.”

Thibault de Saint Vincent, president of Barnes France estate agents, added: “With the Internet it is now possible to work in any corner of the world.

‘Those who are going abroad fear a future taxes on income and capital movements.”