Norway’s decision to increase wealth taxes in 2022 has led to a significant exodus of some of the country’s wealthiest individuals to Switzerland, renowned for its tax-friendly environment. In November, the Norwegian government raised the wealth tax rate from 0.85% to 1.1%, prompting approximately 65 of its wealthiest citizens to seek greener tax pastures.
This affluent group, collectively valued at over 47 billion kroner ($4.4 billion), made the strategic move to Switzerland over the course of a year, as reported by Norwegian newspaper Dagens Naeringsliv. Individuals with a net wealth exceeding 1.7 million kroner ($158,000) or married couples with a combined net wealth surpassing 3.4 million kroner ($317,000) are subject to the 1.1% wealth tax, according to data from PwC.
Among those who chose to relocate to Switzerland is billionaire Kjell Inge Rokke, the primary shareholder and chairman of industrial investment company Aker ASA. Rokke, whose estimated net worth stands at $4.9 billion according to Forbes, had reportedly been one of Norway’s largest taxpayers. In an open letter to the board in September, he explained his “difficult choice” to move from Norway to Switzerland, as reported by The Telegraph.
Switzerland has long been recognized as an attractive tax haven for affluent individuals seeking to leverage its favorable tax regime. PwC notes that wealth taxes in Switzerland vary among its 26 cantons, resulting in an “overall personal net wealth tax rate between 0.02% and 1.03%.”
Notably, Switzerland earned the top spot in the U.S. News & World Report’s ranking of the best countries for a comfortable retirement. The ranking, derived from a global survey and responses from individuals aged in their mid-40s or older, takes into account factors such as affordability, taxes, and property rights when assessing the desirability of a retirement destination.
