May 31, 2023

The super rich are leaving Norway in droves after tax increases

record of Norwegians are very rich make a change Norway by low-tax countries, in reaction to the center-left government’s decision to raise wealth taxes to 1.1%.

According to a report in a British newspaper Watchmanmore than 30 Norwegian billionaires and billionaires left the country in 2022. The survey was conducted by Albilad newspaper Dagens Nearingslevwho explained that this figure is greater than the total number of the super-rich who have left the country in the past 13 years.

The scenario tends to get worse, and more super-rich are expected to leave the country this year due to the wealth tax increase in November 2022. The Norwegian newspaper estimates that the government will incur losses of tens of millions in lost revenue.

It continues after the announcement

British guardian Explains that many have moved to Switzerland, where the taxes are much lower. Among them is the billionaire fisherman Kjell Engi Rock. The billionaire moved to the Italian-speaking city of Lugano.

Rokke, 64, is the fourth richest Norwegian, with an estimated net worth of NOK 19.6 billion. He justified his decision in an open letter: “I chose Lugano as my new residence – it’s not the cheapest, it doesn’t have the lowest taxes – but it’s a wonderful place in the middle of Europe. For those close to the company and me, I’m only a click away.”

according to guardianThe move would cost Norway about R$84 million in lost tax revenue annually. The newspaper notes that Rokke was the most taxed in the country and has paid, since 2008, about R$700 million in taxes.

The British newspaper explains that his change and the change of other billionaires comes after a relatively small increase in the tax allocated to the rich in the country, on wealth, at the local and state levels.

Like Britain’s exit from the European Union.

Among other changes, in November, the government raised the state rate to 0.4% for assets over R$9.6 million for individuals and R$19.2 million for married couples, raising the maximum wealth tax rate to 1.1%.

quoted guardianOle Gjems-Onstad, professor emeritus at Norwegian Business School, estimates that those who left the country had a combined wealth of at least R$290 billion.

“In my opinion, it’s a bit like Brexit (the United Kingdom’s exit from the European Union). Norway doesn’t have a great tradition of self-harm, and the influx of entrepreneurs moving abroad came as a shock,” James Onstad told guardian. “Some politicians blame the rich leaving, but I think a lot of ordinary people don’t like our best investors leaving.”