https://sputnikglobe.com/20230410/super-rich-fleeing-norway-for-low-tax-havens--1109324561.html
Super-Rich Fleeing Norway For Low-Tax Havens
Super-Rich Fleeing Norway For Low-Tax Havens
Sputnik International
A record number of Norway's super rich have been moving abroad to escape wealth tax hike, a research showed.
2023-04-10T16:25+0000
2023-04-10T16:25+0000
2023-04-10T16:25+0000
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Norway is witnessing an exodus of the super wealthy at a record rate, a study has revealed.As more and more affluent people opt to move abroad to dodge the wealth levy rise, Switzerland is believed to be one of the top choice destinations for them. Meanwhile, this outflow is costing state coffers millions in lost tax receipts, according to the study, commissioned by the Norwegian newspaper Dagens Naeringsliv.Lucerne, Switzerland, is where Tord Ueland Kolstad, a commercial real estate investor and salmon farming tycoon, moved his fortune from Norway. Another billionaire, 64-year-old Kjell Inge Rokke, who boasts a worldwide fisheries business, relocated to Italian-speaking Lugano. He is the fourth richest Norwegian, with an estimated net worth of around NOK 19.6 billion (£1.5 billion, $1.8 billion). After his departure, Norway lost an estimated NOK 175 million in annual tax revenue.Kjell Inge Rokke posted an open letter, saying:While over 30 Norwegian billionaires and multimillionaires left the country last year - more than the total number of wealthy residents who quit the country in the preceding 13 years - more are expected to follow suit.Assets in excess of NOK 1.7 million for individuals face a municipal tax of 0.7%, with the figure standing at NOK 3.4 million for couples. Assets above NOK 1.7 million are slapped with a state wealth tax rate of 0.3%. But in November, the government raised the maximum wealth tax rate to 1.1%. Specifically, the rate was elevated to 0.4% for assets above NOK 20 million for individuals, and NOK 40 million for couples.Last year, the governing center-left coalition, led by the Labor Party, also opted to abolish a five-year time limit on exit tax on unrealized gains on shares and other assets. Furthermore, the rules were extended last year to apply to the transfer of shares to close family members living abroad, with immediate effect. The government was tasked with exploring changes to ensure that “unrealized gains accrued in Norway up to the time of expatriation” are actually taxed in the country.Prime Minister Jonas Gahr Store earlier slammed the exodus as a “violation of the Norwegian social contract that makes it possible to build large fortunes in Norway.”
https://sputnikglobe.com/20221117/norway-sees-exodus-of-wealthy-tax-refugees-headed-for-switzerland-1104312396.html
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record exodus, record number of norway's super rich, moving abroad, to escape wealth tax hike, new research, high taxes
record exodus, record number of norway's super rich, moving abroad, to escape wealth tax hike, new research, high taxes
Super-Rich Fleeing Norway For Low-Tax Havens
The governing Labor and Center parties back in 2021 agreed on the need to raise taxes on Norway’s richest, with local media reporting the following year that the move prompted a number of wealthy Norwegians, such as Bjorn Daehlie, a multiple Olympic and world champion in cross-country skiing, to relocate abroad from the oil-rich Nordic nation.
Norway is witnessing an exodus of
the super wealthy at a record rate, a study has revealed.
As more and more affluent people opt to move abroad to dodge the wealth levy rise, Switzerland is believed to be one of the top choice destinations for them. Meanwhile, this outflow is costing state coffers millions in lost tax receipts, according to the study, commissioned by the Norwegian newspaper Dagens Naeringsliv.
Lucerne, Switzerland, is where Tord Ueland Kolstad, a commercial real estate investor and salmon farming tycoon, moved his fortune from Norway. Another billionaire, 64-year-old Kjell Inge Rokke, who boasts a worldwide fisheries business, relocated to Italian-speaking Lugano. He is the fourth richest Norwegian, with an estimated net worth of around NOK 19.6 billion (£1.5 billion, $1.8 billion). After his departure, Norway lost an estimated NOK 175 million in annual tax revenue.
Kjell Inge Rokke posted an open
letter, saying:
"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.”
While over 30 Norwegian billionaires and multimillionaires left the country last year - more than the total number of wealthy residents who quit the country in the preceding 13 years - more are expected to follow suit.
Assets in excess of NOK 1.7 million for individuals face a municipal tax of 0.7%, with the figure standing at NOK 3.4 million for couples. Assets above NOK 1.7 million are slapped with a state wealth tax rate of 0.3%. But in November, the government raised the maximum wealth tax rate to 1.1%. Specifically, the rate was elevated to 0.4% for assets above NOK 20 million for individuals, and NOK 40 million for couples.
Last year, the governing center-left coalition, led by the Labor Party, also opted to abolish a five-year time limit on exit tax on unrealized gains on shares and other assets. Furthermore, the rules were extended last year to apply to the transfer of shares to close family members living abroad, with immediate effect. The government was tasked with exploring changes to ensure that “unrealized gains accrued in Norway up to the time of expatriation” are actually taxed in the country.
17 November 2022, 10:34 GMT
Prime Minister Jonas Gahr Store earlier slammed the exodus as a “violation of the Norwegian social contract that makes it possible to build large fortunes in Norway.”
