In 2022, Norway witnessed a significant exodus of its super-rich citizens More than 30 Norwegian billionaires and multimillionaires decided to relocate to low-tax countries, particularly Switzerland. This departure exceeded the total number of super-rich individuals who left the country during the previous 13 years combined. The primary reason behind this trend was the increase in wealth taxes implemented by the center-left government.
Norway is one of the few OECD countries that still taxes net wealth, and the Labor Party followed through on its promise to soak the rich after its 2021 electoral victory. They raised the country’s wealth tax rate to 1.1 percent, despite warnings that such a move could lead to capital flight and jeopardize job creation. Unfortunately, capital flight did occur, resulting in a substantial loss of revenue for the Norwegian government.
Kjell Inge Røkke, Norway’s third richest man, exemplified this trend by announcing his move to Lugano, Switzerland. His departure alone is estimated to cost the Norwegian government roughly 175 million kroner annually (approximately $16 million). Overall, the wealthy Norwegians who left took with them a total fortune of approximately $54 billion. Consequently, the wealth tax, initially projected to increase revenue by nearly $150 million annually, will now generate about 40 percent less revenue due to the exodus of the super-rich.
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