French super-rich rush to "dispose" of assets

Illustrative photo. (Photo: AFP/VNA)

Faced with political instability and plans for higher taxes on high earners, more and more wealthy French are moving their assets abroad, especially to Luxembourg and Switzerland. This trend, which became evident in 2024, has now accelerated sharply.

Asset managers and banks have seen a surge in private money leaving France since the snap legislative elections in June 2024, according to the Financial Times. Political instability – where successive governments leave office due to the lack of an absolute majority in the National Assembly – is coupled with a budget crisis, causing tycoons to lose confidence in the domestic investment environment.

On October 16, the credit rating agency S&P downgraded France's credit rating to A+, saying that the budget consolidation process will be slower than expected without drastic measures to cut the deficit. In the draft budget for 2026, Prime Minister Sébastien Lecornu proposed many revenue-raising measures, including higher taxes on high-income earners, high-net-worth individuals and multinational corporations with huge profits.

“The majority of the assets we manage are no longer in France, but are being transferred to life insurance contracts in Luxembourg – and this trend is accelerating,” said Guillaume Lucchini, founder of Paris-based asset management firm Scala Patrimoine.

According to Luxembourg’s insurance regulator, the value of French clients’ investments in the country increased by more than 58% in 2024, reaching a record 13.8 billion euros ($16 billion). The inflows continued to rise sharply in the first half of 2025. “In June, the number of requests for advice related to Luxembourg doubled. And every time there is political instability, the number of requests increases again,” said Benjamin Le Maitre, co-founder of investment office Avant-Garde.

According to tax lawyer Olivier Roumélian, “capital flows into Luxembourg have not been interrupted, even during last year’s election period. Brokers hardly need to advertise; clients come to them.”

Switzerland is also becoming a popular destination for the French super-rich. Mr. Lucchini said “huge” amounts of capital are flowing into Swiss banks, especially from businessmen and professional athletes.

“From the 1980s to 2010, many wealthy French people moved to Switzerland,” said Swiss tax and wealth lawyer Philippe Kenel. “When Emmanuel Macron was elected president in 2017, the trend slowed down because of expectations of economic reform. But now the wave is coming back.”

French tycoons are now worried that the 2027 presidential election could bring unfavorable tax policies, whether for a left-wing or right-wing government.

Source: https://vtv.vn/gioi-sieu-giau-phap-o-at-tau-tan-tai-san-100251023201206766.htm