French investors move billions to Luxembourg and Switzerland

The Financial Times revealed an unprecedented acceleration in financial flows outside of France, as the trend was confirmed by wealth managers and bankers.

Uncertain economic and political climate 

French governments are changing hands at a rapid pace, with the country's parliament without an absolute majority since the last round of elections. As a result, balancing the budget has become a headache. On 16 October, ratings agency S&P downgraded France's rating to A+, as it predicted the reduction of the deficit would be slower due to the lack of measures.

Meanwhile, Sébastien Lecornu's 2026 budget proposal includes new taxes on high incomes, large assets and the profits of very large companies.

Guillaume Lucchini, founder of Scala Patrimoine, a specialised Parisian firm, says: "The majority of assets we manage are no longer in France, but instead we are seeing life insurance contracts in Luxembourg."

Life insurance, a popular savings product, offers tax benefits after eight years of ownership, both in France and Luxembourg. In 2024, French investments in the Grand Duchy jumped by 58%, reaching €13.8 billion, a record according to local authorities.

The trend is continuing in 2025. "Last June, requests for information on Luxembourg doubled. Every time there is new political upheaval we see an increase in requests", Benjamin Le Maitre, co-founder of the Avant-Garde family office, told Le Point magazine.

Switzerland is also a popular destination for French capital transfers. "A huge amount is heading to Switzerland", says Lucchini, whose clientele includes athletes and entrepreneurs.

Philippe Kenel, a Swiss tax lawyer, has also observed a resurgence of this phenomenon. "Many French people moved to Switzerland between 1980 and 2020. This slowed down when Macron was elected in 2017, but now we are seeing a lot more people coming."

2027 presidential election is a new source of concern

France's richest are fearing the outcome of the 2027 election, in particular the next president's tax policy. A Swiss banker explains: "A year and a half ago, a French couple in their eighties told me they wanted to invest 20% of their assets in Switzerland, fearing a return of the socialists. They recently returned to transfer more, this time for fear of the far right."

Tax lawyer Olivier Roumélian says the flow of money to Luxembourg has not stopped since the 2024 elections. "Brokers don't even need to seek out customers: clients are flocking of their own accord."

Faced with increased instability, the wealthy in France are voting with their feet, as well as their wallets.