The Rise Of The Super-Rich : A Growing Wealth Gap In France

The economic gap between the French is widening as wealth becomes concentrated in the hands of a tiny minority. As the debate over tax justice rages, a recent study by the Directorate General of Public Finances (DGFiP) paints a picture of the 0.1 % of the wealthiest French, revealing an increasingly marked fracture with the rest of the population. Who are these 74,500 households that make up this financial elite ? What are their incomes, the structure of their assets (real estate), and how has their situation evolved over the past decades ?

Colossal fortunes and atypical incomes

For two decades, the concentration of wealth at the top has intensified, which has given rise to a financial elite whose profile radically differs from that of the rest of the French. Entering this closed circle of high net worth (HNW) requires holding a minimum of 2.7 million euros in assets (real estate and financial investments combined). In 2016, the average wealth of these households reached 10.2 million euros, nearly double the 5.3 million recorded in 2003. Unlike the majority of the French, who favor real estate, 79 % of the wealth of the richest rests on movable assets, mainly financial investments and shares in companies. This strategic orientation has allowed them to capitalize on developments in financial markets and significantly increase their fortunes.

The high earners (HE), for their part, constitute the other half of this elite. To be part of the club, one must justify an annual income exceeding 463,000 euros. However, the average income of this group is 1.03 million euros per year, a figure more than 30 times higher than the average income of other French. Their uniqueness lies in the diversity of their income sources: high salaries, dividends, business profits, rental income, and pensions. Unlike the rest of the population, whose 90% of income comes exclusively from salaries and pensions, the HE optimize their financial flows by multiplying their income channels.

A concentration of wealth shaped by taxation and age

Fiscal and demographic choices play a crucial role in the structuring of this elite. Thus, far from being homogeneous, it divides into distinct categories, with varied implications for the evolution of wealth distribution. Since 2003, the incomes of the HE have increased by 119 %, while those of other households have grown by only 46 % over the same period. Several factors explain this gap. On one hand, the introduction of the flat tax in 2018 favored gains from financial investments by capping their taxation at 30 %, well below the progressive income tax scale. On the other hand, multiple adjustments to the Wealth Tax (ISF), replaced by the Property Wealth Tax (IFI) in 2017, have indirectly contributed to this accumulation through the exclusion of securities from the taxable base.

The typical profile of the HNW and HE diverges sharply from the rest of the French population. 76 % of high net worth individuals are over 61 years old, indicating that their wealth often comes from a decades-long accumulation process or inheritance. In contrast, only 32 % of high earners exceed this age, demonstrating that high incomes do not always guarantee substantial short-term wealth. Moreover, 69 % of very wealthy households are married, compared to only 42 % in the rest of the population. This rate even reaches 74 % for the HE, reflecting greater marital stability among the very wealthy.

The rapid evolution of the wealth of this ultra-wealthy minority raises major questions about fiscal equity and wealth distribution in France. While this financial elite has taken advantage of tax reforms and financial investments, their increased exposure to economic fluctuations can also be a factor of vulnerability. The crises of 2009 and 2012 led to declines of 8.5 % and 6.4 % in their incomes respectively, proving that their prosperity partially relies on cyclical dynamics.

As the question of a more progressive tax reform resurfaces, two opposing views arise. Should we impose more on these 75,000 ultra-rich households to reduce inequalities, or should we favor their investment dynamics to maintain economic competitiveness? The extreme concentration of wealth at the top fuels a debate that will undoubtedly continue to energize political and economic discussions in the years to come.