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French billionaires top list for world’s richest men and women

The world’s richest man and the world’s richest woman are - for the first time ever - both French, according to the 2023 ranking by Forbes.

Published: 5 April 2023 16:39 CEST

French billionaires top list for world's richest men and women

Francoise Bettencourt-Meyers, and Bernard Arnault. (Photo by FRANCOIS GUILLOT and Eric PIERMONT / AFP)

“For the first time in the history of the ranking, the richest man and woman in France are also the richest in the world. A double performance that testifies to the strength of the French economy despite the successive crises that our country is going through, directly or indirectly,” Forbes France said in a press release, as it announced the list.

Forbes listed a total of 43 billionaires in France, including seven women, while there are 2,640 billionaires worldwide, according to Forbes’ calculations.

The top 25 richest people in the world are worth a combined US $2.1 trillion. That figure is down some US $200 billion from the top 25’s value in 2022, as two-thirds of those on the list lost wealth.

Bernard Arnault

The world’s richest man is Bernard Jean Etienne Arnault, age 74, best known as the CEO of luxury goods company LVHM.

Back in 2022, Arnault was third on the Forbes list behind Twitter and Tesla boss Elon Musk and Amazon’s Jeff Bezos but he overtook both in December.

Although his rise to the top of the list was helped by Musk’s public destruction of the value of Twitter, LVMH – which includes luxury brands Louis Vuitton, Christian Dior and Tiffany & Co – added US $53 billion to Arnault’s wealth last year.

His net fortune is currently US $211 billion, Forbes said, although it has been reported that he had proposed reorganising his holding company so his five children each had an equal share, meaning that his time at the top of the list may be limited.

Like a lot of people on this list, Arnault had a bit of help from his parents in getting started on the road to riches.

Born in the northern French city of Roubaix, he joined his father’s public works building company at the age of 22 and then persuaded his dad to move into real-estate development. After some time in the US, Arnault returned to the family firm, this time instituting a drastic reorganisation and diversifying into luxury brands like Christian Dior.

“My father was surprised when I went to see him saying: ‘We’re going to redirect the family group and try to invest in something more promising, Christian Dior’,” the businessman recalled recently on Radio Classique.

Since then he has consolidated the empire and added more high-end brands, as well as moving into media companies, something he describes as “more on the patronage side”.

He generally shuns the limelight, and sold his private jet when environmental groups started tracking their use (you won’t see him on the train though, he still uses a jet but now he leases one).

The 2016 satirical documentary “Merci Patron !” (Thank you Boss!) by filmmaker and now politician François Ruffin, tells the story of a community in northern France left devastated when the boss (Arnault) shuts down the local factory and moves production to Asia.

Françoise Bettencourt Meyers

The world’s richest woman (and 11th on the world’s richest people list) is one who is unlikely to be well-known outside France. The 69-year-old Françoise Bettencourt Meyers is reportedly worth US $80.5 billion.

Like Arnault, she was clever enough to be born into wealth – she is the heiress of the cosmetics giant L’Oréal. She has topped the Forbes rich list for women since 2019 – her mother Liliane Bettencourt was top of the list before her.

Born in the exclusive Paris suburb of Neuilly-sur-Seine, Bettencourt Meyers describes herself as a businesswoman, philanthropist, writer and pianist.

Her mother Liliane became the centrepiece of the scandal that led to the corruption trial of ex president Nicolas Sarkozy – the elderly lady, who was possibly senile at the time, had been donating money to campaign funds that were not properly accounted for.

L’Oréal was founded in 1909 by French pharmacist Eugene Schueller, an enthusiastic supporter of French fascist and anti-Semitic groups who after World War II stood trial for collaboration with the Nazi occupiers.

and the best of the rest . . .

2 Elon Musk

Musk’s takeover of Twitter, and the chaos that followed, saw Musk’s wealth plunge US $37 billion in 12 months. The South African is still worth US $180 billion, according to Forbes’ figures, mainly – apparently – because of SpaceX.

3 Jeff Bezos

The former Amazon CEO saw his personal wealth dip US $57 billion in 2022 because of the falling value of his Amazon shares, but he’s still valued at US $114 billion, a fortune he’s eating into due to his philanthropy – not to mention going into space and buying a $500 million superyacht…

4 Larry Ellison

Buying a US $173 million home in Florida can’t have hit the 78-year-old tech entrepreneur and former Tesla board member too hard in the wallet, with Forbes calculating his net value at US €107 billion. He also owns the Hawaiian island of Lanai – which is where he lives.

5 Warren Buffet

The doyen of the upper echelons of Forbes’ rich list, the 92-year-old investor has a net value of US $106 billion and is a go-to financial expert for the US government, who consulted him about possible banking issues following the collapse of Silicon Valley Bank in March.

6 Bill Gates

It takes a long time to give away your fortune. The mind behind Microsoft and his former wife still have US $104 billion to work through in the next 25 years via their Gates Foundation. They are planning to up their spending with the intention of winding it down in 25 years – but Gates is also working with Microsoft-backed OpenAI, which is behind the ChatGPT AI that a lot of people are talking about.

7 Michael Bloomberg

We dip below the US $100 billion threshold at last, for Michael Bloomberg the 81-year-old co-founder of the financial, software, data, and media company that bears his name. Bloomberg is worth a meagre US $94.5 billion on Forbes’ numbers.

8 Carlos Slim Helú

The 83-year-old head of Latin-American mobile phone company América Móvil saw his personal wealth jump US $12 billion in 2022, to US $93 billion.

9 Mukesh Ambani

Asia’s richest person comes in at nine on Forbes’ list, with a personal wealth estimated at US $83.4 billion, from his multi-interest Reliance Industries, which has fingers in oil to telecoms interests. Three of his children are in key roles as financial experts wonder about the 65 year old’s succession.

10 Steve Ballmer

Being involved with Microsoft has its advantages, clearly. Former CEO Ballmer, now best known for his ownership of NBA side the LA Clippers, is in Forbes’ top 10, with an estimate net worth of $80.7 billion. He’s suffered – for a given value of ‘suffered’ – because declining value of Microsoft shares mean his $10 billion less well off than last year.

If you’re wondering, vaguely, where other well-known billionaires are on Forbes’ list: Google’s Larry Page is 12th, Meta (Facebook to most of us) boss Mark Zuckerberg is 16th; and Gautam Adani is 24th – having been the world’s third richest person on January 24th, according to Forbes’ metrics. His estimated wealth has fallen from nearly US $126 billion to US $47.2 billion since then. Proof that wealth – even super-wealth – can be fleeting.

In France, and out of the world’s top 25, François Pinault, founder of the luxury goods group Kering is the next richest person; then the brothers Alain and Gérard Wertheimer, owners of the Chanel fashion house.

Emmanuel Besnier, the boss of Lactalis is next – and the first of the French mega-rich not in the luxury and beauty sector.

Meanwhile, Xavier Niel and Patrick Drahi, owners of Free and SFR, are both down in the ranking as the 18th and 22nd richest French billionaires.

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Explained: How are foreign pensions taxed in France?

France is a popular destination for people to retire to, and in most cases the retirees’ main or only income will be a pension paid from their home country.

So is this pension income taxed in France?

First steps

To determine whether you need to declare and pay tax on your foreign pension in France, the first question is whether or not you are a tax resident here (you can look through our guide).

If you are a tax resident of France, then you are required to declare all worldwide income – including foreign pensions – when you make your annual income tax declaration. Declarations are now open – find full details on how to fill it in HERE.

The next step is figuring out whether you will owe tax in France, and this will depend on several things;

the type of pension you receive (state pension, government employees’ pension, private pension)
where your pension is paid
how you draw your pension (lump sum or monthly payments)
the tax treaty between France and the country your pension is paid in.

This article is intended to give an overview of the situation for English-speaking foreigners living in France. It is highly recommended to get help from an expert financial advisor. You may also want to start by consulting our guide on pensions, if you have pensions from both France and either a non-EU country or an EU one.

Pension country

When it comes to taxation on foreign pensions, it all depends on the tax treaty between France and the country that is paying your pension, which is why the situation is significantly different depending on where that pension is paid.

In this scenario, your nationality usually isn’t important – the key thing is where the pension is being paid and the fact that you are now a tax resident in France. For most people, their nationality and the country that pays their pension will be the same (eg Brits receiving a UK pension) but not always, as some people may have worked in multiple countries before retiring to France.

This article is aimed at people who have worked in another country and then retired to France – the situation can be different for people who have worked in France and then retired.

US pensions

American retirees living in France benefit from a generous US-France tax treaty to avoid double taxation on all pension income, including private pensions.

To better explain the situation, The Local spoke with tax expert, Jonathan Hadida from HadTax.

“The reason we call France the bees’ knees for American retirees is because US-sourced pension income is only taxed in America. That means when you take money out of your 401(K) or IRA, those are taxable at your tax bracket in the United States.

“You have to report it on the US-side and pay US taxes at your marginal rate” Hadida explained.

“On the French side, US-sourced pension income is reportable in France for rate-purposes but benefits from a deemed credit.

“This means you put it on your French tax form, and you calculate the tax and you get a deemed credit equal to that. Ultimately, you wind up paying no French taxes on your US-sourced pension thanks to Article 18 of the US-France tax treaty”.

How do I report US-sourced pension income to French authorities?

Although you won’t end up paying French taxes on your US pension, you do need to tell the French taxman about it. The annual French income tax declaration requires you to declare all global income, including pensions.

International Financial Advisor, Bryan Dunhill with Dunhill Financial explained: “You fill it in within box 1AL or 1BL on form 20-42 on the French tax return, then you claim it in on the 8TK of the 20-47 to say it is US-based pension income, and then you will get a tax credit from the French.

“It goes in and it goes out on the French side. Being a US retiree in France is fantastic”, Dunhill said.

For both 401(K)s and IRAs, Americans in France should still keep in mind that early withdrawal (prior to the age of 59 and a half) can still lead to a 10 percent early distribution penalty. There are certain exemptions, such as first time homebuyers and higher education, but you should meet with a tax adviser to determine if you qualify.

What about social charges?

In addition to taxes (impôts), France also requires people to pay social charges (prélèvements sociaux) on income. However, only specific types of income can be considered for social charges, such as the CSM charge (PUMa) for healthcare.

The general rule is that pensioners and their spouses do not have to pay the CSM charge, but France specifically exempts people who have a pension from France, the EU, the EEA and the UK (people with S1 forms).

There is some debate over whether common types of American private pensions such as a 401(K) or IRA are treated as a pension (and therefore exempt from CSM) or as investment income (which can attract CSM charges).

Hadida told The Local: “Under the principle of equality amongst taxpayers, URSAAF has treated most US pensions/IRA distributions/401(k) distributions akin to a French/Swiss/European pension and have therefore exempted Americans with pension income.”

“I have called URSSAF, and I was told by the representative that they should be paying for PUMa. But in practice, I have not seen many American pensioners charged for it.

Canadian pensions

In Canada, the pensions system includes multiple tiers of public and private schemes, but luckily the double tax treaty between Canada and France is explicit about where pensions are taxed.

The Local spoke with Isaac Barchichat, a registered CPA in France, Canada and the USA to understand the situation for Canadians in France. He is a managing partner at Monceau CPA, an international accounting firm based in Paris with offices in the US and Canada.

He told The Local: “Tax treaties usually follow the OECD model, which means that Article 18 is usually focused on pensions.

“Article 18 for the Canada-France treaty is very similar to the USA-France treaty. This means that pensions are taxed in the country that they are issued in,” he said.

As a result, any Canada-based pension – whether that is the Old Age Security plan, the CPP (Canada Pension Plan) or QPP (Quebec Pension Plan), or a private personal or employer plan (such as Registered Retirement Savings Plans, or RRSPs) – would be taxed in Canada, not France.

Barchichat explained that Canadians in France should still declare their pension income in France. Like Americans, they will receive a tax credit from France attesting that they have already paid tax in Canada on their pension.

“People should still maintain proof that the pension was already subject to tax, in case of an audit,” he added.

Barchichat also recommended that Canadians resident in France can make use of the ‘mention expresse’ section in their French tax declaration.

“Sometimes French local tax authorities fail to assess foreign income properly. Using the ‘mention expresse’ allows you to specify to French tax authorities Article 18 from the tax treaty to ensure that they process your documents properly,” he advised.

What about social charges?

Similar to the situation for Americans (described above), the exemption for social charges specifies French, EU, EEA and UK pensions, not Canadian ones.

That being said, as Hadida mentioned above, French tax authorities often apply the same exemption normally intended for EU pensions to non-EU ones.

Barchichat, who is licenced in both the US and Canada, said that in his opinion neither American nor Canadian pensioners should be charged for prélèvements sociaux.

“If this happens, it is a mistake by tax authorities”, he added. You can learn more about contesting a CSM charge here.

UK pensions

Brits – or anyone else receiving a UK pension – have a very different situation to Americans and Canadians.

As per the UK-France dual tax agreement (PDF), whether you will be taxed in France or the UK depends on the type of pension – government/civil service pension or a private pension.

If you have a UK government or civil service pension (eg a state school teachers’ pension), then this will remain taxable only in the UK. Some old NHS pensions were considered ‘government pensions’, but modern ones might not be. You can check if your pension is classified as ‘government’ here.

You still have to declare this income to the French tax authorities, but you will not be subject to tax in France on it, although it does count towards your household income which can push you into a higher tax bracket.

The same is not true of private pensions: these are generally taxed in France, not the UK, as soon as you become a tax resident here. Confusingly, the UK state pension is also considered a private pension, even though it is paid by the government.

Normally private pensions are taxed upon distribution in the UK. Once you move to France, in order to avoid paying tax twice on the same income, most people fill out an NT form and sending it to HMRC (who will communicate to your pension company) to receive your British private pension in gross.

You can find a more in-detail look at the situation for UK pensioners HERE.

How do French taxes work?

If you have a private pension you will need to work out how it will be taxed in France, but this too is complicated as it depends on the exact pension type and whether you take the money as a lump sum or as regular payments.

If your pension is paid as a regular income, then when doing your yearly French tax declaration, you will add up your pension income for that year and you will be taxed at the normal marginal rates for income (the barème). These rates go up to 45 percent (for the highest earners only) plus social charges if they apply (more on this below).

Pension income can also benefit from a 10 percent tax deduction, as long as it does not exceed €4,123 or fall below €422 per household.

Lump sums are more complicated and depend on several factors including the pension type and how you take them – when deciding on this it’s highly recommended to get individual financial advice.

The Local spoke with financial adviser Maeve Hoffman, from Spectrum IFA Group, who said: “Figuring out what to do with your pension should be part of your wider financial plans for your life. This may be your most important asset, besides your home, and the best answer for what to do with your pension is highly individual. There are no sweeping generalisations when it comes to advice on private pensions. Everyone’s situation is different.

“You will want to start by considering whether you plan on being in France in the long-term. Some options could have serious consequences if you return to the UK shortly after.”

What about social charges?

People who have never worked in France and who retire to France once they reach the UK state pension age are entitled to as S1 – this status ensures that the UK continues to pay your healthcare costs are not charged prélèvements sociaux. Non-working spouses of an S1 holder can also benefit.

Those who take early retirement and move to France before they reach the UK state pension age may have to pay social charges until they are able to apply for the S1. However, there are several exemptions to social charges, so even if you expect a bill, you may not end up being charged. More information in our guide.

Australian pensions

The situation for Australians can be particularly confusing, largely due to the fact that Australia and France do not have a bilateral social security agreement (though there is an income tax treaty).

Let’s start off with the simple answer – if you receive a civil service pension from the government of Australia – meaning you were a federal or state public worker, then that pension is only taxed in Australia and it will not be taxable in France, though you will have to declare it along with all global income.

As for all other pensions – these are considered taxable in France.

There is another catch for Australians – the lack of a social security agreement means that Australians living in France may not be able to claim their Age Pension (assuming they qualify based on income constraints).

While you can be an Australian living in Austria, Belgium, Chile, Croatia, the Czech Republic, Spain or Estonia, among others, and still claim your Age Pension, this is not the case in France.

What’s crucial here is when you move – if you start receiving your old-age pension and then you move to France, then you may be able to continue claiming the pension. If, however, you move to France before you reach pension age, then you will not be able to claim it unless you move back.

A spokesperson for the Australian government told The Local in a previous interview: “To be eligible for Age Pension, a person must generally be an Australian resident and be in Australia at the time the claim is lodged, or in a country with which there is an International Social Security Agreement in place.”

There is no such agreement with France. And, despite the efforts of some of the thousands of Australians living in France to get politicians in both countries to act, there appears to be little urgency to change the situation, which means it could be some time yet before we are able to give you any good news on the pension front.

There are groups pushing for a social security agreement, such as the Facebook group ‘Australian Pensions in France’, which can also be a helpful place to connect with other Australians navigating tax complexities between the two countries.

What about superannuation plans?

The next complex area is the ‘superannuation’. While withdrawals from a ‘super’ can be accessed after becoming a resident in France, there are tax implications to be aware of.

The Local spoke with Martine Joly, chartered accountant and tax agent from Bilateral Solutions, who has experience working in both the Australian and French tax systems.

Joly explained that the challenge is that “the two systems are totally opposite. In Australia, pensions are done by capitalisation, with your employer paying into the superannuation.”

In Australia, the contributions were taxed when being deposited, so they are meant to be tax-free upon distribution.

However, France does not recognise this, so ‘super’ withdrawals are subject to tax here, even though in theory they have already been taxed in Australia.

To make matters more complicated, there are several different ways superannuation plans can be organised, but for the most part French fiscal authorities treat them as trusts.

This means that you may have additional reporting requirements each year, in addition to your annual French tax declaration, such as the “FORMULAIRE N°2181-TRUST2” which asks for the market value, as well as any accrued income, of the trust as of January 1st of that year.

If you are required to do this, then you will also have to name other people listed in the trust – whether they are ‘moral’ or ‘physical’ people. You will be required to give extensive information, including their dates of birth and addresses.

On top of that, you would also have to fill out an additional “event” declaration if a trust is created, modified or terminated. This must be done within one month of the event. This tax form is also available on the government tax site: FORMULAIRE N°2181-TRUST1.

How much can I expect to pay?

You will begin to be taxed when you start withdrawing from your super, and the way you are taxed will depend on whether you take payments in the form of an ‘income stream’ (periodic payments) or as a lump-sum.

If you take your super as an income stream, even though it is meant to be tax-free in Australia, you will still owe tax in France once it begins to be distributed. You would be charged at the progressive marginal (barème) rate for income tax, going all the way up to 45 percent (for the highest earners only).

If you try to avoid paying, be aware that “Australia will inform France”, as Joly explained.

“They communicate well and it will not be lost. So the French will realise if you have not paid any tax, because it is fully taxable in France. You have to declare this pension income,” she said.

As for lump-sum payments, whether or not you will owe tax in France depends on when you placed the super into your bank account.

“If you convert the super into a bank account prior to leaving Australia and becoming a tax resident in France, then this is not an income, it is a saving,” Joly said.

As such, you would not owe income tax on it, but you would still need to declare the foreign bank account to French tax authorities.

If you take your lump-sum super after moving to France and becoming a tax resident, then you would owe tax here upon distribution. As with UK pensions, lump sums are complex and you should get financial advice before making this decision.

Technically, French tax authorities may allow a return of once off pension capital to be taxed at a flat rate of 7.5 percent.

But in reality, anyone seeking to do this would need the express, written confirmation from French tax authorities that this rate will be applied. Similarly, you should be aware that this likely will not be possible if you have already begun drawing from your ‘super’, as the flat rate is often only available if the full amount is taken at once. Again, individual professional advice is highly recommended.

You can also find more information at the French tax website Impots.Gouv.Fr.

Joly pointed out a few other things Australians in France should be aware of – including the possibility you may owe the IFI (Impôt sur la fortune, or wealth tax) which considers whether you have property valued at €1.3 million or above.

“Due to high real estate prices in Australia, people just owning a small apartment in Sydney may not realise they would owe tax on this in France later on,” she said.

You should also keep in mind that Australia’s tax year runs on a different calendar year. France considers the period from January 1st to December 31st, while Australia looks at July 1st to June 30th.

This may make a difference when considering your tax residency.

What about social charges?

Australians have reported receiving social charges, in addition to taxes, for their superannuation income. That being said, there are several exemptions to social charges.

For example, if you are not working and your spouse is a recipient of an EU/EEA/UK pension (with an S1 form), then both of you would be exempt from paying the CSM health charge.

As the situation for Australians can be more complicated than nationals of other countries, it is highly recommended to seek expert assistance, particularly from someone who has qualifications in both countries and understands the tax treaty.

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