Europe’s rich watch Norway’s election debate on wealth taxes

Norway’s wealth tax has become one of the most divisive issues in its upcoming election. The tax requires individuals with fortunes above a certain level to pay an annual levy, which the government argues is necessary to support the welfare state. However, many wealthy Norwegians have left the country for Switzerland in protest, with more than 500 entrepreneurs and business leaders relocating there. Their departure has fueled a heated political debate between the ruling centre-left government and the centre-right opposition, which promises to make Norway more attractive to wealth creators.

The controversy is being closely followed across Europe, where interest in wealth taxes is growing. Supporters argue that the tax ensures the rich contribute fairly, while critics say it discourages investment and drives away talent. Prominent figures such as Gustav Magnar Witzøe, one of Norway’s richest individuals, have highlighted how the tax forces entrepreneurs to pay dividends from their companies just to cover the levy. Start-up founders have also voiced frustration, noting that they are taxed on paper valuations even if their companies are losing money and generating no income.

The political fight has become central to Norway’s election, which remains tight. The centre-left has gained some momentum with the presence of Jens Stoltenberg, the former Nato chief and now finance minister, who has promised a full review of the tax system after the vote. Meanwhile, the centre-right insists that high taxes are driving away talent and damaging Norway’s business environment. The outcome will not only shape the country’s economic future but will also be closely watched across Europe as governments consider their own approaches to taxing wealth.

For more information see Richard Milne “Europe’s rich watch Norway’s election debate on wealth taxes,” The Financial Times, August 19, 2025. 

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.