NORWAY: A record number of extremely rich Norwegians are leaving Norway for low-tax nations following a rise in wealth taxes to 1.1% by the centre-left government.
Over 30 Norwegian billionaires and multimillionaires fled Norway in 2022, says a survey by the Norwegian newspaper. This was higher than the total number of extremely wealthy people who had departed the nation in the previous 13 years, it added.
Due to the increase in the wealth tax in November, even more extremely wealthy people are anticipated to depart this year, costing the government tens of millions in lost tax revenue.
Many people have relocated to Switzerland since taxes are substantially lower there. They include Kjell Inge Rokke, a multibillionaire fisherman turned industrial magnate who relocated to the Italian-speaking canton of Lugano near his favourite hangout, Lake Como, and the fashion hub Milan.
With an estimated net worth of approximately NOK 19.6 billion (£1.5 billion), Rokke, 64, is the fourth richest Norwegian. In an open letter, he stated, “I’ve chosen Lugano as my new residence—it is neither the cheapest nor has the lowest taxes—but in return, it is a great place with a central location in Europe… For those close to the company and to me, I am just a click away.”
His relocation will result in a loss of tax revenue to Norway of roughly NOK 175 million per year. Rokke paid the most taxes in the nation last year. As calculated by the Norwegian newspaper, he has paid around NOK 1.5 billion in tax since 2008.
After a minor tax increase targeted at the country’s super-rich, who are liable to wealth taxes on both a local and state level, he moved to Switzerland. On assets valued at more above NOK 1.7 million (or NOK 3.4 million for couples), there is a municipal tax of 0.7%.
On assets worth more than NOK 1.7 million, a 0.3% state wealth tax is also applied. For assets worth more than NOK 20 million for individuals and NOK 40 million for couples, the government raised the state rate to 0.4% in November, bringing the top wealth tax rate to 1.1%.
Tord Ueland Kolstad, an investor in retail real estate and salmon farming with a fortune of around NOK 1.5 billion, has relocated from Bod in northern Norway to Lucerne in Switzerland.
Regarding his relocation, he told the Norwegian broadcaster TV 2 that this was “not what he wanted, but the increased tax and tough rules of the current administration mean that he, as the responsible owner and founder, has no choice.”
Kolstad said that the higher wealth tax meant he would pay somewhat more than NOK 6 million, which would require him to pay himself a dividend of NOK 10 million to account for the higher dividend tax.
State secretary for the ministry of finances, Erlend Grimstad, expressed optimism that wealthy Norwegians would return “in time.” He said, “We expect that if you have achieved success and wealth in Norway, you will continue contributing to Norwegian society.”
“The Norwegian approach is that everyone should contribute in accordance with their capacity, and as a result, those who can afford to pay taxes more should do so,” he concluded.
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