Norway’s Wealth Tax Pushes Millionaires Abroad but Strengthens Equality

Norway’s long-standing wealth tax is reshaping the lives of its richest citizens and sparking global debate. Sitting in his lakeside villa in Lucerne, former Norwegian businessman Borger Borgenhaug says leaving his home country—and the Nordic sea he misses—was the price of escaping what he views as an increasingly hostile tax environment. He is one of many high-net-worth individuals relocating as Norway tightens its wealth-tax rules.

The current tax imposes 1% on net wealth between 1.76 million and 20.7 million crowns and 1.1% above that, with 12% of the population paying in 2023. While main homes receive major valuation discounts, assets abroad count and debt remains deductible. Norway also enforces a steep 37.8% exit tax on unrealised capital gains, and recent reforms closed previous loopholes. As a result, more than 250 wealthy residents left in both 2022 and 2023—double historic levels—according to think-tank Civita. Over a hundred of the country’s richest now live abroad, with some featured on a “wall of shame” displayed by the Socialist Left party.

Supporters argue the tax is crucial for fairness, helping maintain one of the world’s most equal societies while boosting government revenue to 0.6% of GDP. Research suggests the burden falls mainly on the wealthiest and does not directly hinder business investment or employment. Many Norwegians agree: a recent poll shows 39% support maintaining or raising the tax.

Critics counter that the levy drains capital, discourages entrepreneurship and pushes founders and heirs overseas before their companies mature. Norway’s low venture-capital levels and high labour costs reinforce these concerns.

Other countries have been hesitant to replicate Norway’s model. France scaled back its wealth-tax plan, Britain refuses to introduce one, and Italy is making only modest changes. Meanwhile, millionaire migration is rising worldwide, with Norway projected to lose another 150 this year.

Norway’s experience shows that wealth taxes can boost equality and revenue—but at the cost of losing some of the very entrepreneurs who drive economic growth.