A new proposal in France’s National Assembly is reigniting global discussion around citizenship based taxation, the principle that a person’s nationality, not just their residence, can determine their tax obligations.
Last week, the French Finance Committee approved a measure that would require high earning French nationals to continue paying domestic taxes for up to ten years after relocating to a lower tax jurisdiction. The amendment, proposed by Finance Committee chair Eric Coquerel and the far left party La France Insoumise, aims to prevent capital flight and ensure what its authors call “equity” among taxpayers.
Under the proposed system, French citizens earning more than five times the annual social security ceiling (about €235,500 in 2025) who move to a country with tax rates 40% lower than France’s would remain liable for French taxes for a decade. A credit would apply for any foreign taxes already paid, designed to prevent double taxation.
If passed, this would represent a major shift in French tax policy and an alignment, at least philosophically, with the United States, which taxes its citizens worldwide regardless of where they live. France has historically refrained from such measures, relying instead on residency based taxation.
Proponents frame the move as a way to restore fairness and generate revenue, arguing that the wealthiest citizens should not be able to avoid contributing to the nation by relocating abroad. Critics, however, warn that it could deter entrepreneurship, investment, and even discourage global mobility for French citizens.
While it remains uncertain whether the amendment will make it through the full legislative process given France’s fragmented parliament, its introduction signals a broader trend. Across Europe, countries like Sweden, Finland, and Germany already have mechanisms for extended taxation after departure. Lawmakers in other high tax nations are watching closely as governments grapple with how to maintain fiscal balance in an increasingly mobile world.
For internationally minded investors and global citizens, these developments serve as a reminder: the global tax landscape is evolving. As more countries explore citizenship linked taxation, the appeal of jurisdictions offering stable, residency based systems and clear legal frameworks continues to grow.
At Citizens International, we help individuals navigate these changing regulations and find secure, tax efficient options for second citizenship and international residency.
Set up a complimentary consultation with our team to learn more about strategic citizenship and how global shifts in tax policy may affect your long term plans.
FREE DOWNLOADS
