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With Record Debt, France Proposes Unprecedented Tax: Wealthy Citizens Who Leave the Country Will Be Able to Continue Paying Taxes for Up to 10 Years After the Change, Following the US Model.
Amidst one of the largest fiscal crises in the European Union, the French government is studying an unprecedented measure that could completely change how the country deals with its wealthy citizens who decide to live abroad. The proposal, revealed in October 2025 by The Telegraph and confirmed by specialized portals in international tax law such as IMI Daily and the consulting firm BDO Global, provides that high-income French citizens continue paying taxes to France for up to ten years after moving.
France Wants to Follow the United States Model
The initiative is part of a strategy by the Paris government to curb tax evasion and balance a public debt that already exceeds € 3.3 trillion, equivalent to 114% of GDP.
The Minister of Economy, Bruno Le Maire, admitted that the country is looking for “fairer ways” of taxation in light of the rising exodus of large fortunes to jurisdictions with lighter tax burdens, such as Portugal, the United Arab Emirates, and Switzerland.
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According to The Telegraph, the measure was inspired by the American model, which requires that US citizens continue paying taxes even while residing abroad, a system known as “worldwide taxation.”
The French proposal — dubbed the “citizenship tax” — would follow the same principle, requiring contributions from French citizens with annual income exceeding € 235,000 who move to countries with a tax burden at least 40% lower than that of France.
What Experts and Tax Consultancies Are Saying
Reports from consultancies such as BDO Global and PwC France show that France already has a severe tax regime for expatriates, known as exit tax, which applies to unrealized capital gains when a taxpayer transfers tax residence abroad.
This taxation, according to current legislation, can already apply in some cases for up to 15 years after the move, especially when the tax authority considers there has been an attempt to escape from capital.
With the new proposal, however, the charge would become broad and lasting, also affecting part of regular income and investments made outside French territory.
In practice, those who move to low-tax countries could continue to be monitored and required to contribute to the French Treasury for up to a decade.
“The goal is to prevent millionaires from moving their residence just to escape taxes. France wants to ensure that those who became rich in the country continue to contribute for a minimum period,” explained a consultant interviewed by IMI Daily.
Public Reaction and Risks of Capital Flight
The proposal has not yet become law and will undergo debates in the French Parliament in the coming months. Nonetheless, the idea has already sparked controversy among economists and business leaders, who consider the measure a “witch hunt against the rich” and warn of the risk of even greater capital and enterprise flight.
The financial sector fears that long-term taxation on expatriates would deter foreign investments and hinder the international mobility of French professionals.
In contrast, the government argues that the system is necessary to ensure tax fairness and fund public services amid economic slowdown and rising social expenses.
Understand the Economic Context Behind the Measure
In recent years, France has faced a growing budgetary imbalance, exacerbated by increased spending on pensions and energy.
The public deficit exceeded 5.5% of GDP in 2024, and attempts to cut spending were largely rejected by unions and the opposition.
With internal pressures and the need to reduce debt, taxation on expatriates has become one of the government’s main bets to boost revenue, placing France among the few nations in the world willing to pursue the tax rigor of the United States.
A Global Trend?
Experts in international tax law assert that if the proposal is approved, France could set a precedent for other European countries to adopt similar policies.
With the rise of digital platforms and remote work, governments have found it challenging to tax fortunes and incomes that circulate beyond their borders.
The idea of a “targeted universal tax” — as it has been termed by the French press — reflects a paradigm shift: governments want to tax not just where the citizen lives, but where they built their wealth.
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