Fast and furious financial acts cause confusion for UHNWIs in France
When France’s socialist government, under the leadership of President Francois Hollande, took power in 2012, it did so with a promise of increasing taxes to reduce the country’s budget deficit, one of the largest in the Eurozone.
Swathe of tax hikes on French businesses and households
What followed was a swathe of tax hikes on French businesses and households, dramatically increasing the fiscal burden on the country’s wealthiest individuals. France’s richest man, Bernard Arnault, the chief executive of luxury group LVMH, took Belgian nationality, while the actor Gérard Depardieu also reportedly moved across the border and then obtained Russian citizenship. High-earning French footballers threatened strike action.
Though the most controversial tax hike a plan to impose a 75% tax rate on earnings above 1 million, never ultimately materialised, the threaten did cause exits by French ultra-high net worth individuals. Many are yet to return, but three years later there are signs of a shift in attitude, advisers say.
Francois Mollat du Jourdin is the chairman and founder of MJ & Cie, a multi-family office with offices in Paris and Geneva says: “We still see clients leaving France for tax reasons but there are also plenty who stay.” While the reforms were framed as necessary to restore fiscal balance, critics argued they stifled growth at a fragile time for the French economy, which was already lagging behind Germany and the UK.
Political fallout and image abroad
The tax policies fuelled deep resentment among business leaders and became a rallying cry for opposition parties. The international press often portrayed Hollande as “Monsieur 75%,” a moniker that reinforced the perception of France as hostile to entrepreneurs and investors. Capital flight and stories of celebrities renouncing their French ties added to the government’s reputational challenges.
Early signs of moderation
By 2014, amid growing unpopularity and weak economic performance, Hollande’s administration began softening its stance. The government announced plans to simplify the tax code and reduce corporate charges in an effort to stem the exodus of wealth and revive competitiveness. The rhetoric shifted from punitive taxation to “responsible” reform, though many critics felt the damage to investor confidence had already been done.
Longer-term a reversal under Macron caused the Yellow Vest protests
When Emmanuel Macron, Hollande’s former economy minister, became president in 2017, he sought to reverse much of the damage. His reforms included scrapping the wealth tax on financial assets, lowering corporate tax rates, and sending clear signals that France was “open for business.” These moves marked a decisive break with Hollande’s legacy, restoring some investor confidence but also sparking social backlash of their own, such as the Yellow Vest protests, which accused Macron of favouring the rich.
Reconciling social equity with economic competitiveness
The Hollande years stand as a cautionary tale of how fiscal policy, when overly punitive, can trigger both economic and reputational consequences far beyond its intended scope. While the tax hikes succeeded in signalling fairness to some of the electorate, they also accelerated capital flight, discouraged investment, and alienated the very individuals driving economic growth. Macron’s later reforms highlight the pendulum swing in French politics — from wealth-targeted taxation to pro-business pragmatism. Together, the two presidencies underscore the enduring challenge for France: how to reconcile social equity with economic competitiveness in an increasingly mobile, globalised world.
Expert biog: François Mollat du Jourdin, MJ & Cie
François Mollat du Jourdin is the chairman and founder of MJ & Cie, a multi-family office established in 2001 with bases in Paris and Geneva. A graduate of Audencia, he began his career in Africa with Union Financière de France before spending a decade at Neuflize Schlumberger Mallet, later part of ABN Amro, where he developed international private wealth management services. He then joined Merrill Lynch Private Banking France before creating MJ & Cie to offer independent, client-focused advice. Known for championing transparency and alignment of interests, he positions the family office as a “conductor” coordinating investment, tax, legal, and governance matters for ultra-high-net-worth families. Beyond his financial career, he has a background as a French Navy reserve officer, a passion for travel, and even past experience on the stage at the Avignon theatre festival.
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