Norway’s tax levy on wealth
INTERNATIONAL – EUROPE
25 NOVEMBER 2025
- Norway operates a beefed-up annual wealth tax, which has pushed hundreds of millionaires to move abroad, yet continues to support one of the world’s most equal societies.
- The country has taxed wealth since 1892, and maintains a culture of transparency where citizens can view each other’s tax returns.
Tax Structure
- 1% on net wealth between NOK 1.76 million and NOK 20.7 million.
- 1.1% on wealth above NOK 20.7 million (rate introduced in 2022).
- Assets abroad are included in the wealth calculation.
- Debt is deductible, lowering taxable net wealth.
Exit Tax (Strengthened in 2024)
- Leaving Norway triggers an exit tax of 37.8% on unrealised capital gains above NOK 3 million.
- This applies to shares and other assets that have increased in value but have not been sold.
- Loopholes permitting indefinite deferral of this tax were closed in 2024.
Who Pays
- In 2023, 671,639 people (≈ 12% of the population) paid wealth tax, a significant increase compared with previous years.
Wealth Exodus
- Conservative think-tank Civita reported that 261 high-net-worth residents (wealth > NOK 10 million) emigrated in 2022 and 254 left in 2023.
- These numbers are more than double the typical pre-hike level.
- According to Kapital magazine, 105 of Norway’s 400 richest individuals now live abroad or have shifted assets to relatives abroad.
Political Context
- The wealth tax was a major issue in the September 2025 election, which brought the Labour Party back to power.
- During its earlier term, Labour raised wealth tax rates and tightened exit-tax rules.
Supporters’ Arguments
- Acts as a redistributive safety net in a country that abolished inheritance tax in 2014.
- Important for revenue generation because Norway puts oil and gas revenues into a sovereign wealth fund and limits annual withdrawals from the fund to 3% under a self-imposed fiscal rule.
- Wealth-tax collections have increased despite the millionaire exodus.
- Revenues now equal 0.6% of GDP — a non-trivial contribution.
Economic Criticism
- Particularly burdensome for startup founders, who are taxed on paper value of companies long before they earn profits or liquidity.
- May discourage entrepreneurship and push high-net-worth individuals to relocate.
Global Relevance
- Norway’s model is closely watched by Britain, France, Italy, and even cities like New York debating similar wealth-tax proposals.
- Core lesson: A wealth tax may push out some millionaires, but broad coverage can still generate significant, stable revenue.
