French Parliament Targets Expatriates’ Hard Currency Transfers

A proposed amendment to the French Finance Law 2026 reveals a clear parliamentary ambush against Algerian expatriates’ foreign currency transfers to their homeland.

This includes imposing a new 1% tax on every transaction from France to countries outside the European Union, primarily Algeria and North African countries, as well as other African countries.

In this context, proposed Amendment No. 3258 to the French budget for the new year, submitted on October 22 and reviewed by Echorouk, stipulates the creation of a tax on every financial transfer made by a natural person for personal reasons, not within the framework of a professional, commercial, or humanitarian activity. Only transfers made within the European Union or by accredited humanitarian organisations are exempt, except for transfers made specifically to some countries, most notably Algeria.

The authors of the proposal, who belong to the Union of the Right for the Republic bloc “UDR”, led by Eric Ciotti, known for his hate speech against Algerians, said that remittances to non-European countries represent approximately 10 billion euros annually, the majority of which is directed to countries in North Africa, the Sahel, and West Africa. They consider this a “net loss of wealth produced on French soil,” overlooking the significant and vital contribution of immigrants to the French economy in all its sectors.

The initiators justified the imposition of this tax by the absence of any tax contribution on these financial transactions, asserting that it is inspired by the “financial transaction tax” model in force in France, and that it will be collected monthly by financial institutions and transferred to the public treasury.

The text explained that the goal of this step is to secure additional resources for the state treasury in light of the financial difficulties. This tax is expected to provide approximately 100 million euros annually, not including professional transfers or those directed within the European Union.

The amendment also exhibited a clear tendency towards extortion, not uncommon among French right-wing parties, by attempting to condition the exemption of certain countries from this tax on their satisfactory cooperation in combating illegal immigration.

The proponents of the amendment indicated that “the government will retain the possibility of exempting certain countries from this tax through a decree,” provided they demonstrate “satisfactory cooperation” in controlling irregular migration, providing consular cooperation, and repatriating illegal immigrants to their countries.

The amendment went so far as to link this contribution to what its proponents called the “cost of immigration to public finances,” which the French Observatory for Migration and Demography estimated at approximately €75 billion annually, with a net cost of nearly €41 billion after taking into account taxes and social contributions paid to migrants.

In an attempt to justify the proposal, the proponents of the amendment cited that €10 billion is transferred annually to Algeria, Morocco, Tunisia, Senegal, Mali, Comoros, and the Ivory Coast. They claim that this sum represents wealth generated on French soil and smuggled abroad.

This amendment, if approved, is currently being considered by the French National Assembly and would deduct the remittances of hundreds of thousands of Algerian expatriates residing in France. The larger the amount, the greater the deduction, especially since they constitute the largest foreign community in this European country.

The amendment clearly demonstrates that, rather than acknowledging the significant economic and humanitarian role played by communities residing in France, particularly the Algerian community, which is the largest and most influential, the proponents of the proposal chose to portray immigrants as a burden on public finances. They argue that expatriates pump billions of euros into the French economy annually through taxes, social contributions, and consumption. The proposed amendment turns them into defendants, bearing responsibility for financial and structural crises that have nothing to do with them.