Paris ‘prepares new move’ to woo London’s top earners after Brexit
France is preparing more tax cuts to make the country attractive to top earners who might quit the UK after Brexit.
France has long been seen as unattractive to top earners due to the high amount of taxes they have to pay compared to other countries, but the government of Emmanuel Macron is determined to alter that image.
Macron’s first budget released earlier this year was heavily criticized for giving the rich tax breaks. One particular move saw the government cut taxes on high earning finance jobs to make Paris more attractive for firms shifting operations out of London due to Brexit.
Nevertheless the tax burden on high salaries in France remains an issue that complicates Paris’s marketing drive. According to Les Echos the government is preparing a new round of tax cuts in January in a bid to make Paris as competitive as Frankfurt with both cities fighting to replace London as Europe’s financial hub.
The move would see a reduction in so-called “social charges” that are deducted from people’s pay packets for those moving to Paris from London. “Reducing the burden on the high salaries of finance is crucial to accelerate transfers from London to France. The public authorities have no ambiguity on this,” said Arnaud de Bresson, the general delegate of Paris Europlace. The high costs to employers in France compared to Germany or the Netherlands is also seen as hindering Paris’s chances of wooing more bankers post-Brexit.
According to Les Echos an employer who pays a banker a salary of €100,000 a year will see payroll costs reach €49,000 in France compared €12,000 for the equivalent salary in Germany. France also announced this year it would build three new international schools to try to attract foreign finance workers and their families after Brexit.