Hundreds of millionaires are leaving Norway for other countries to escape the government’s wealth tax. At the same time, tax revenue helps authorities maintain essential services and reduce inequality. A model that has inspired discussions about similar rates, from the United Kingdom to France, and even in New York.
Borger Borgenhaug, a carpenter turned real estate mogul who left the country in 2022, now lives in the Swiss city of Lucerne. In an interview with Reuters, Borgenhaug says the political climate in Norway has become increasingly hostile to business owners.
The country has more experience than most in tightening its grip on the rich, thanks to a wealth tax that dates back to 1892 and a culture of transparency that allows citizens to check other people’s income tax returns.
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According to the report, the tax was a decisive issue in Norway’s election in September, which brought the Labor Party back to power. The party had raised the fee and tightened exit rules during its previous term.
Data from conservative think tank Civita cited by Reuters shows that 261 residents with assets above 10 million crowns ($973,000) left the country in 2022 and 254 in 2023, more than double the typical rate before the increase.
With the increased rate and stricter rules, individuals pay 1% on net worth between 1.76 million and 20.7 million crowns (equivalent to US$174,000–$2 million, respectively) and, since 2022, 1.1% above that amount.
Exactly 671,639 people – around 12% of the population – paid the tax in 2023.
Additionally, leaving the country triggers a 37.8% exit tax on unrealized capital gains above 3 million crowns — such as theoretical gains on shares that have appreciated in value but not yet been sold. Loopholes that allowed emigrants to postpone payments indefinitely were closed in 2024.
Business magazine Kapital’s ranking of the 400 richest Norwegians shows that 105 now live abroad or have transferred their wealth to relatives living abroad.
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The report adds that supporters of the tax argue that it works as a kind of redistributive lock in a country that abolished the inheritance tax in 2014 and is among the richest in the world thanks to oil, maritime transport and fishing.
All profits from the oil and gas industry go into a sovereign wealth fund and limit annual withdrawals to 3% of the fund’s value, under a self-imposed tax rule. Therefore, Norway needs to find other sources of income.
Despite the exodus of millionaires, revenue from the wealth tax now stands at 0.6% of GDP. Research by Norway’s statistics body shows that entrepreneurs have enough liquidity to pay the tax and that the burden falls overwhelmingly on the richest. Another study suggests that the tax can stimulate investments in human capital.
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Speaking to Reuters, Robert Iacono, professor at the Norwegian University of Science and Technology (NTNU), points out that these results suggest that the wealth tax does not directly harm investment or employment at the company level.
Norway remains among the most egalitarian countries in the world and appears high in ease of doing business rankings.
A survey carried out by the Response agency for the newspaper Aftenposten, just before the September elections, showed that 39% of Norwegians wanted to maintain or increase the wealth tax, while 23% wanted to reduce it and 28% favored its abolition.
