As Norway approaches a pivotal election, one issue dominates the political debate — wealth taxation. Once considered a uniquely Scandinavian model of redistribution, Norway’s approach has triggered an exodus of wealthy citizens and sparked wider discussions across Europe.
The Wealth Exodus to Switzerland
Over the past several years, more than 500 of Norway’s richest entrepreneurs and business leaders have relocated to Switzerland, according to estimates by DNB, the country’s largest bank. The departures are widely seen as a protest against recent adjustments to Norway’s long-standing wealth tax under the current centre-left government.
Switzerland, with its more favourable tax environment, has become a preferred destination for these individuals, though even there uncertainty looms — voters will decide in November whether to impose a higher inheritance tax on the country’s wealthiest residents.
Political Fault Lines in Oslo
The controversy has become a central dividing line between Norway’s political blocs. Conservative leader and former prime minister Erna Solberg has made scrapping or reducing the wealth tax a campaign priority, arguing it hampers business growth. Sylvi Listhaug, head of the populist Progress Party, has gone further, claiming Norway risks losing talent and capital: “We should be a country like Switzerland that attracts people, resources, competences. Instead, we are sending people away.”
On the other side, the Labour-led government insists the levy ensures the wealthiest contribute fairly to sustaining Norway’s generous welfare system. Officials warn that abolishing it would mean some billionaires could pay no tax at all.
How the Tax Works
Norway’s wealth tax is levied at 1 to 1.1 per cent on fortunes exceeding NKr1.76mn ($170,000). While discounts apply to property and debts can be offset, the tax still bites deeply for wealthy individuals with large “on-paper” holdings but little cash income.
The case of Gustav Magnar Witzøe illustrates the point. As heir to salmon farming giant SalMar, his NKr30bn ($3bn) fortune made him Norway’s largest taxpayer in 2023, with NKr330mn paid in wealth tax — despite having no declared income. Critics argue that entrepreneurs like Witzøe are forced to extract dividends from their businesses just to cover the levy.
Start-ups are among the hardest hit. Fredrik Haga, founder of a billion-dollar cryptocurrency data company, relocated to Switzerland after being taxed on his company’s valuation despite it being loss-making and paying no dividends. “I hope at least Norway can be a cautionary tale for other countries for how much of a self-inflicted wound taxing unrealised gains can cause,” he warned.
A European Debate
The implications of Norway’s wealth tax extend beyond its borders. Sweden abolished its own version in 2007, a move credited with helping foster its vibrant start-up culture. In the UK, however, voices within the Labour Party are pressing for the introduction of a similar system, closely observing Norway’s experience.
Meanwhile, high-profile figures such as Ikea founder Ingvar Kamprad and shipping billionaire John Fredriksen have long illustrated how entrepreneurs migrate in response to taxation. Fredriksen, once a Cypriot citizen living in London, has now moved to the United Arab Emirates, complaining that “Britain has gone to hell, like Norway.”
What Comes Next
With the election too close to call, the outcome may hinge on the wealth tax issue. The presence of Jens Stoltenberg — the former NATO chief now serving as finance minister — has given the centre-left an edge. He has pledged a review of the tax system after the September 8 vote, signalling possible reforms.
For now, Europe’s wealthy and policymakers alike are watching Norway carefully. The debate highlights both the appeal and risks of taxing fortunes — and its capacity to shape not just politics but the movement of people and capital across borders.
