French citizens who live overseas to avoid paying higher taxes at home will face French taxes, Finance Minister Francois Baroin said.
President Nicolas Sarkozy announced the measure in a television interview earlier today.
“The idea is that we replace taxation based on residence with tax based on nationality,” Baroin said at a press conference in Brussels when asked about Sarkozy’s proposal. “Others have done it, the Americans have done it. There should be no tax advantage for living overseas and if there is a difference it has to be made up.”
Baroin said “the president realizes that there’s a difference between someone who lives abroad for tax reasons and someone who lives abroad to pursue a stage in their career.”
Baroin said the measures would require new tax treaties with foreign countries which would be re-negotiated should Sarkozy win re-election in May. Baroin said he couldn’t estimate how much revenue the measures could raise.
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