What threshold must wealthy individuals meet to be subject to the tax?

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Thresholds for France's "Exit Tax" on Wealthy Individuals

Wealthy individuals in France are subject to the "exit tax" if they meet specific criteria related to their residency, the value of their financial assets, or their ownership stake in a company that has relocated. This tax, which was initially intended to prevent high earners from moving their assets out of France to jurisdictions with lower tax rates, has undergone modifications. The levy is now applied under revised conditions, impacting individuals who have resided in France for a minimum of six years and possess significant financial holdings or ownership in a relocated business.
Residency and Financial Asset Requirements

The tax applies to individuals who have been residents of France for at least six years and hold stocks or bonds valued at over €800,000. This financial threshold is a key determinant for the application of the exit tax, ensuring it targets individuals with substantial liquid or investment assets. The value is equivalent to approximately US$930,000 or RM3.85 million, indicating a significant level of wealth.
Company Ownership Criteria

In addition to financial asset holdings, the exit tax also targets individuals who own at least 50 per cent of a company that has moved its operations out of France. This provision aims to capture entrepreneurs and major shareholders who relocate their businesses, thereby potentially reducing their tax obligations within France. The ownership percentage is a critical factor in determining applicability under this clause.
Revised Conditions for Asset Sales

A significant modification to the exit tax is the revised timeframe for asset sales. Previously, the tax could be levied for up to 15 years after an individual's departure from France. However, under the updated regulations, the tax will now only be applied if assets are sold within two years of the person leaving the country. This adjustment aims to simplify the tax's application and reduce its administrative burden.

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What threshold must wealthy individuals meet to be subject to the tax?

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