According to an Entrepreneurng report, after the center-left administration raised wealth taxes to 1.1%, a record number of extremely wealthy Norwegians are emigrating to low-tax nations.
According to data from the daily Dagens Naeringsliv, around 30 billionaires and multimillionaires from Norway left the country in 2022. It went on to say that this was higher than the total number of extremely wealthy people who had left the nation over the previous 13 years. Due to the increase in wealth tax in November, even more extremely wealthy people are anticipated to leave this year, costing the government tens of millions in lost tax revenue.
Since Switzerland has substantially lower taxes, many people have migrated there. They include Kjell Inge Rkke, a multibillionaire industrial entrepreneur who was formerly a fisherman and relocated to the Italian-speaking canton of Lugano to be near his favorite hangout Lake Como and the fashion hub Milan.
With an estimated net worth of roughly NOK 19.6 billion (£1.5 billion), Rkke, 64, is the fourth richest Norwegian. “I’ve picked Lugano as my new residence,” he wrote in an open letter. “It is not the cheapest nor has the lowest taxes, but in exchange, it is a fantastic destination with a central location in Europe. I am easily accessible to individuals who are close to the business and me.
The lost tax revenue from his relocation will cost Norway roughly NOK 175 million annually. Ikke had the highest tax burden in the nation the previous year. He has paid around NOK 1.5 billion in taxes since 2008, according to Dagens Naeringsliv’s calculation.
He relocated to Switzerland when the country’s super-rich, who are subject to wealth taxes at both the local and state levels, saw a comparatively modest increase in taxation. On assets above NOK 1.7 million for individuals and NOK 3.4 million for couples, a municipal tax of 0.7% is also included. There is additionally a state wealth tax of 0.3% on assets worth more than NOK 1.7 million. For assets worth more than NOK 20 million for individuals and NOK 40 million for couples, the government increased the state rate in November to 0.4%, bringing the maximum wealth tax rate to 1.1%.
We hope you’ll stay and keep contributing to Norwegian society if you’ve found success and wealth in Norway, he said. “We do support Norwegians’ efforts to succeed in adding value and achieving wealth. And we think that one key element in achieving that success is the Norwegian model, which combines a robust public welfare system with excellent educational standards.
In conclusion, the Norwegian model is that everyone should contribute to their capacity; as a result, those who are better able to pay taxes should contribute a little more.
Source: The Guardian
