Expatriates in France and Italy could cash in on Brexit

Europe's governments are offering tax breaks to attract high-paid banking and other professionals from London to Europe's financial centres as Brexit day nears.

Ruth Holmes

13 November 2018

According to research from business services firm PwC and the London Financial Times, France and Italy have been most robust in the tax breaks on offer for the highest paid relocating bankers.Calculations by PwC show that an individual earning €1mn in the UK can expect to take home €542,869 without expat concessions, and €677,064 with concessions, including 30% allowable expenses.

Where do expats earn most in Europe?

In France, where the expat regime introduced in 2016 under the country’s previous government include an income tax break of up to 50% for the first eight years, net pay rises to €732,289.For Italy, under its five-year scheme, the figure is €772,805 - the highest out of the nine countries assessed - for a 50% reduction for Italian employment income.Spain is slightly behind the UK at €672,409 while the figure for Ireland comes in at €652,649.

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Expat pay and relocation allowances

While the figures give a broad overview of what are in reality nuanced and individual circumstances, they show another front in the post-Brexit battle for banking.Remuneration for high-paid individuals depends on a number of variables and fiscal benefits often last for a fixed term before reverting to local resident tax rates.For some, the marginal difference in pay and the uncertainty relocation inevitably comes with may mean commuting between London, Paris, Dublin, Rome, Amsterdam or is preferable.

Related news and features from Relocate Global:

Which banks are relocating to Paris?

Paris is regarded as the "winner" at the City of London's expense, with financial institutions are already giving the green light to relocation and contingency plans to the French capital.Overall, the Bank of England estimates London will lose around 5,000 jobs. Yet, as David Sapsted reported earlier this month, French banking giant Societe Generale, which employs 4,000 people in London, is the first major City employer to warn staff that they must either relocate to Paris or face losing their jobs.HSBC has also already announced it will move some of its 1,000 jobs from its London operations to Paris.BlackRock, the world’s largest asset manager, and JPMorgan Chase also look to be joining the Societe Generale, while French lobby group Paris Europlace has forecast Paris could gain 3,500 jobs as a result of Brexit.Head to our HR section for more news and insight from the CIPD.Subscribe to Relocate Extra, our monthly newsletter, to get all the latest international assigntments and global mobility news.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online Directory

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