An IMGlobalWealth.com News Report
France’s turbulent politics and rising tax uncertainty are reshaping wealth management across Europe.
Since President Emmanuel Macron’s snap parliamentary elections in June 2024 fractured the National Assembly, French entrepreneurs and affluent families have accelerated transfers into Luxembourg insurance products and Swiss bank accounts in search of stability and security.
The trend is most visible in Luxembourg’s booming life insurance market, a favored cross-border vehicle for wealthy savers. Premiums in the Grand Duchy’s life segment rose 41% in 2024 to reach €26.8 billion, according to Luxembourg’s insurance supervisory authority, the Commissariat aux Assurances.
“For wealthy French households, moving capital abroad has become a form of insurance against political volatility”
French-origin investments reached a record €13.8 billion, confirming France as the country’s largest client base. Reports from The Financial Times and Reuters highlight that these products, which function as flexible savings contracts, allow investors to hold assets under strong Luxembourg regulatory protection while they consider relocation or restructuring options.
Wealth advisers say that while the contracts do not offer immediate tax breaks for French residents, they provide flexibility and peace of mind. Entry thresholds often begin at €250,000, marking the phenomenon as one driven by the upper tier of savers and business owners.
Switzerland has also benefited from renewed safe-haven demand. Private bankers and lawyers in Geneva and Zurich report an increase in inquiries from French clients seeking to open securities accounts or establish residency through lump-sum tax arrangements for non-working residents.
According to Swiss-based tax lawyer Philippe Kenel, many clients are motivated as much by political stability as by potential tax savings.
In Paris, policy signals have reinforced these moves. Prime Minister Sébastien Lecornu, governing with fragile left-wing support, has announced new levies on holding companies and the highest earners, even as he resists calls from the Socialist Party to reinstate a sweeping wealth tax.
Across Europe, governments from Italy to Spain are adjusting incentives for high-net-worth residents, prompting more investors to diversify internationally.
For wealthy French households, moving capital abroad has become a form of insurance against political volatility. By shifting assets to Luxembourg and Switzerland, they are not necessarily fleeing France, but preparing for whatever comes next.
