Brexit – income tax breaks moving to Paris

Please note that the information herein is of a general nature and you should not act or refrain from acting on it without professional advice on the specific facts of your case. No liability is accepted by the author or Sykes Anderson Perry Limited in respect of this article. Taxation is a complex subject and the above is a basic outline only and is intended only as a general guide. Nothing herein constitutes financial advice.

The French government has recently announced that the “tax on high earnings” will not apply to bankers and others relocating to Paris. Little has been published officially on this. We set out below what this tax is and how this will affect individuals moving from London to Paris. At the time of writing there is no official documentation available from the French government.

La Contribution exceptionnelle sur les hauts revenus

This is what the tax on high income individuals is called. It applies to individuals who earn more than €250,000 per year and couples (assessed together) who earn more than €500,000 together. It is in Article 226 sexies CGI (French Tax Code). The income includes all income which is declared.

Single people pay 3% on income from €250,000 to €500,000 and 4% on income over €500,000.

Couples assessed together pay 3% from €500,000 to €1,000,000 and 4% thereafter.

Single person taxpayer - example

In simple terms this means that a single person on €400,000 per annum pays additional tax of €400,000 - €250,000 = €150,000 @ 3% = €4,500.

A single person on €2,000,000 per annum pays (500,000 – 250,000) @ 3% + (2000,000 – 500,000) @ 4% = €67,500.

Married couple taxpayers - example

In simple terms this means that a couple on €800,000 per annum pay additional tax of 800,000 – 500,000 = 300,000 @ 3% = €9,000

A couple on €2,000,000 per annum pay (1,000,000 – 500,000) @ 3% + (2,000,000 – 1,000,000) @ 4% = €55,000.


The tax savings on the above not applying are significant for higher earners. The detailed Bulletin from the French government has yet to appear and will need to be looked at closely. There are other aspects to the computation and the above is simplistic and in general terms.

July 2017

David Anderson

Solicitor-Advocate and Chartered Tax Adviser