The high end property market in France is facing a dramatic increase in supply as Francois Hollande Government announces a tax rise in the coming months.
"It's nearly a general panic. Some 400 to 500 residences worth more than €1 million have come onto the Paris market”, managers of Daniel Feau, a Parisian estate agency which specialises in luxurious properties said to the French Press Agency.
This huge increase in supply is due to the fact that the new Socialist Government plans to raise the tax rate to 75% on income above €1 million per year and to introduce a marginal tax rate of 62.21% on sales of stock, which has led some the wealthy people say they will leave the country.
Entrepreneurs are mostly concerned as President Francois Hollande plans to reduce the French debt by taxing the companies and the wealthy. They have made a lot of noise, mainly on Facebook via a group called “Les pigeons”, literally The Pigeons that had attracted more than 8,000 followers on Twitter and 60,000 likes on Facebook. This group has forced the Government to back track and now say it will take into consideration the entrepreneurs requests.
In spite of this, some entrepreneurs are still thinking about moving abroad with their family to avoid paying more and more tax. Thanks to new distance working technologies, "it is now possible to work in any corner of the world and to spend one week a month in France", said Thibault de Saint Vincent, president of Barnes France, the principal competitor to Daniel Feau. The preferred destinations of those leaving are London, New York and Geneva, as well as Canada, Israel and Singapore, said Laurent Demeure, head of Coldwell Banker France.
However, we should probably take all this with a pinch of salt as the wealthy French often say they will leave the country when a change in tax occurs but the majority do not do so when they realize all the difficulties implied when moving abroad.
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