Running away from super-rich family: So Norway lost 52 billion

The world’s fifth country in per capita income and the recent energy crisis in Europe brought record revenues to its companies in the sector and to the state coffers. But when the centre-left government decided to increase the wealth tax, dozens of billionaires fled Norway and moved their tax offices to Switzerland or other countries where there was more favorable taxation for the super-rich.

An investigation by the Dagens Naeringsliv newspaper revealed that in 2022, more than 30 billionaires and multi-millionaires left Norway, causing the government to lose tens of millions of tax revenue. The escape was triggered by an increase in the capital base taken last November: a relatively small increase that raised the maximum tax rate on assets to 1.1 percent. But that was enough for the super-rich Norwegians to pack up their guns and luggage and move to where the tax collector was more generous with their wealth.

Big magnates like Inge Rokke, with an estimated wealth of 1.6 billion euros, welcomed by Switzerland with open arms: “I have chosen Lugano as my new residence – he wrote in an open letter – It has neither the cheapest nor the best taxes. But in return, this is Europe” It’s a great place with a central location.” Its relocation will cost the Oslo coffers a little less than the annual tax revenue of 15m euros. He would have to pay taxes of around 130 million euros.

Ole Gjems-Onstad, professor emeritus at the Norwegian business school, estimates that the flight of the super-rich last year took assets worth 600 billion Norwegian crowns, about 52 billion euros, from the country. “I think it’s a bit like Brexit. Gjems-Onstad told the Guardian: “Norway has no great tradition of self-harm and the wave of entrepreneurs moving abroad was a kind of shock.” “But I think a lot of ordinary people don’t like our best investors to go,” he said.

But the government is going straight ahead. Finance Minister Erlend Grimstad stated that he is confident that the escape is only temporary and that the billionaires who have moved abroad will soon return to their homes. “We encourage Norwegians to create value and become rich. We believe that the Norwegian model with a strong public welfare will be successful.” system and high level of education are important factors that made this success possible,” he said, noting that the “model in Norway” is that those with more resources pay “a little bit more” in taxes.

Source: Today IT

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