France has decided to give up on the widely-known wealth tax (75% of revenues in excess of €1 million), which has scared away many wealthy investors for two years. Prime Minister Manuel Valls said that the taxe imposed by the socialist government and the president Francois Hollande for two years, is not to be renewed. It is expected that it will be cancelled since January 1, 2015.
According to estimates made by the Ministry of Finance, if in 2014 the wealth tax in France earns €260 million, then in 2015 it will be only €160 million, while the total profit from ordinary income tax is €70 billion. However, the tax authorities do not intend to give up on other projects: it is planned to raise the tax on second property by 20% in France.
Let’s recall that once the "luxury tax" was announced, the country's richest man and LMVH CEO Bernard Arnaud and actor Gerard Depardieu went away from France. Both moved to neighboring Belgium, where taxes are lower. Depardieu also became a citizen of Russia. In addition, the actors Vincent Cassel and Monica Bellucci left the country, as well as its former president Nicolas Sarkozy, who moved to London.