Norway wants to stop the immigration of its wealthiest citizens. According to the news of the financial portal Bloomberg, the Norwegian parties have agreed to adjust the taxes. The wealthiest Norwegians should not be persuaded to stay with lower taxes, but there is some form of penalty tax for anyone who moves.
For example in Switzerland: More than a dozen Norwegian millionaires have moved to Switzerland since the beginning of the year to avoid high taxes in their homeland. The most prominent example is Norwegian industrial tycoon Kjell Inge Røkke (64), who recently moved to Lugano TI. A nice move for Ticino, “Bilanz” estimates Røkke’s fortune at 3.5 to 4 billion francs and now puts him in the list of the 300 richest people in Switzerland.
The other side of the coin: Norway lost the second most powerful taxpayer! The anger at Røkke’s departure was correspondingly great.
The statute of limitations of tax
In order to prevent similar cases in the future, the Norwegian parties have now agreed to tighten the so-called “exit tax”. The tax requires wealthy Norwegians to pay high taxes on unrealized gains from their wealth during their move. To date, taxes on these unrealized gains have been limited to five years. This limit should be removed.
Problem: Unrealized profits are often only found on paper. For example, they occur when the value of a property increases. But there is no such profit in the bank account unless the owner sells the property. Taxes are still paid.
In addition, as Bloomberg continues to write, Norway is looking to expand its exit tax on share transfers to close family members abroad.
Røkke justifies relocation with central Switzerland location
Norway is known for its relatively high taxes. Wealth tax is especially important for wealthy Norwegians. However: Switzerland is one of the few countries in Europe that has a wealth tax. In general, however, the tax burden is lower for wealthy Norwegians in this country.
Meanwhile, the foremost Norwegian immigrant Kjell Inge Røkke emphasizes that she did not move to Switzerland due to taxes: Instead, she praises Switzerland and especially Lugano for its quality of life: “During the pandemic, I learned to work from everywhere. . Switzerland is located in the center of Europe.»