Super-rich abandoning Norway at record rate as wealth tax rises

A record number of super-rich Norwegians are abandoning Norway for low-tax countries after the centre-left government increased wealth taxes to 1.1 per cent.

More than 30 Norwegian billionaires and multimillionaires left Norway in 2022, according to research by the newspaper Dagens Naeringsliv, The Guardian reports.

This was more than the total number of super-rich people who left the country during the previous 13 years, it added.

Even more super-rich individuals are expected to leave this year because of the increase in wealth tax in November, costing the government tens of millions of lost tax receipts.

Many have moved to Switzerland, where taxes are much lower. They include billionaire fisher turned industrial tycoon Kjell Inge Røkke who moved to the Italian-speaking canton of Lugano, close to his favoured hangout Lake Como and fashion capital Milan.

Røkke, 64, is the fourth-richest Norwegian, with an estimated fortune of about NOK 19.6bn (£1.5bn). In an open letter, he said: “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 cost Norway about NOK 175m in lost tax revenue a year. Last year, Røkke was the country’s highest taxed individual. Dagens Næringsliv calculated that he has paid about NOK 1.5bn in tax since 2008.

His move to Switzerland follows a relatively small increase in tax aimed at the country’s super-rich, who face wealth taxes at both the local and state level. That includes a municipal tax of 0.7 per cent on assets in excess of NOK 1.7m for individuals, or NOK 3.4m for couples. There is also a state wealth tax rate of 0.3 per cent on assets above NOK 1.7m. In November, the government raised the state rate to 0.4 per cent for assets above NOK 20m for individuals, and NOK 40m couples, taking the maximum wealth tax rate to 1.1 per cent.