The national wealth tax has become the central issue in Norway’s general election, sparking intense debate over whether to keep, reduce, or eliminate it. As the country heads to the polls on Monday, this fierce national argument shows no sign of ending, regardless of which party wins.
In an economy less than a seventh the size of Britain’s, the wealth tax—known as formuesskatt—raises about 32 billion kroner (£2.4 billion). If the same rules were applied in the UK, adjusted for the difference in GDP, it could generate over £17 billion—a significant amount in tax revenue. Supporters argue that the tax is a cornerstone of Norway’s progressive tax system, which has helped create one of Europe’s most equal societies.
However, entrepreneurs are pushing back, funding lobbying efforts and pouring money into political campaigns and online advertising. A protest song even captures the sentiment: “Don’t come to Norway, we will tax you till you’re poor, and when you have nothing left, we will tax you a little more,” laments a business consultant in a LinkedIn video. On the other side, the leader of the Socialist Left party keeps a “wall of shame” in her office, displaying the names of those who oppose or avoid the tax.
More troublingly, experts are facing attacks. Economists and statisticians have reported a surge in disinformation, hate mail, and targeted criticism in the press. Annette Alstadsæter, director of the Skatterforsk Centre for Tax Research, has spoken in favor of the tax and published studies on tax avoidance and offshore wealth. She now carefully weighs her public statements and has left social media due to the risk of online abuse. “People are so angry. Either you are very against or very for,” she says.
“I’ve been working on this for 15 years, and it’s always an issue, but this time it has exploded,” says economist Mathilde Fasting, a member of the right-leaning think tank Civita and an advocate for abolishing the tax. “Each time you talk about economic issues, this tax comes up. It’s like a symbol of everything else happening.”
In a country where politics usually stays close to the center, the wealth tax has drawn a sharp line between left and right. The dispute has turned into a full-blown culture war, with appeals reminiscent of Trump’s rhetoric aimed at ambitious young men who may not yet be wealthy enough to pay the tax but oppose it on principle. On the YouTube show Gutta (Guys), four muscular hosts filmed themselves pouring champagne over their watches while discussing “tax refugees.”
Jens Stoltenberg, the former NATO secretary-general and ex-Norwegian prime minister who returned to politics as finance minister in February, has promised to establish a cross-party commission to review all taxes if his Labour party returns to power. Thanks to his broad appeal, Labour has risen in the polls and now leads the populist Progress Party, which has pledged to scrap the wealth tax. The more moderate center-right Høyre party, which wants to sharply reduce the tax, is in third place.
During his decade leading NATO, Stoltenberg was called “the Trump whisperer” for persuading the former U.S. president not to withdraw from the alliance. Resolving the wealth tax dispute may require all the diplomatic skill he used in that role. The challenge will be to keep the tax without driving billionaires to leave the country.
“If a ton of people leave Norway, that would be a problem,” says entrepreneur Karl Munthe-Kaas, who supports the tax. “But if we let these wealthy groups hold the rest of the country hostage, I have an issue with that.”
Beneath the noise, the underlying conversation remains nuanced. Norwegians are engaging in a thoughtful debate.Tax with confidence, because they have access to all the right data. In Norway, tax returns for named individuals are public and accessible to all citizens—a practice almost unique among democratic nations. Company information is also detailed and reliable.
Norway has taxed wealth above a certain threshold since 1892, even before gaining full independence from Sweden. Along with Spain and Switzerland, it is one of only three European countries that still impose a wealth tax. The current rate is 1% for assets over 1.7 million kroner (£125,000) and 1.1% for those exceeding 20.7 million kroner. This tax is calculated annually by adding up the value of properties, savings, investments, and shares, then subtracting any debt. Private companies are considered part of their owners’ wealth. There are discounts, such as only 25% of the value of a primary residence being taxable.
Although 720,000 Norwegians pay the wealth tax, for most the amount is small. According to Fasting, about 3,000 have taxable wealth exceeding 100 million kroner. One of the largest contributors is Gustav Magnar Witzøe, heir to the SalMar fish farming business. In 2023, he paid 330 million kroner in wealth tax—his only personal tax, as he reportedly had no income. Under proposals by the Høyre party, his tax bill could drop to zero, as the party aims to exclude “working capital,” meaning assets tied to trading businesses.
Changes introduced by the Labour party have increased total wealth tax revenue from 18 billion kroner in 2021 to 32 billion last year, with even higher estimates for 2025. In 2022, these changes led some wealthy individuals to leave the country. Over 30 billionaires and multimillionaires relocated, including industrial tycoon Kjell Inge Røkke, Norway’s fourth-richest person, who moved to Switzerland. Despite warnings of lost tax revenue and economic harm, the impact has been limited.
Even so, the wealthiest Norwegians continue to grow richer. In 2024, the top 400 had a combined wealth of 2.139 trillion kroner, up 14% from the previous year. However, half of this wealth is reportedly controlled by families living abroad.
Fasting predicts more departures, noting that people are not investing locally, not listing their companies, and eventually moving away. She believes if Labour remains in power after the elections, more will leave. Her main argument for abolishing the tax is that it disadvantages Norwegian business owners compared to foreign ones, forcing them to withdraw dividends to pay taxes instead of reinvesting in growth or new ventures.
One of the most vocal lobby groups is Aksjon for Norsk Eierskap (Action for Norwegian Ownership), backed by figures like salmon exporter Roger Hofseth.“This time, a lot of people will flee to Switzerland,” Hofseth said at a gathering last month.
“There’s a mentality among self-made people where they forget they are products of the system,” says Alstadsæter from the Centre for Tax Research. “For me, it’s about fairness. Everyone should contribute a little. The wealthy benefit from many public goods—a stable political system, social security, and a highly educated population with access to free healthcare.”
She believes some reforms are necessary, arguing that the current threshold of 1.7 million kroner is too low.
Given that Norway’s sovereign wealth fund, funded by profits from its oil and gas reserves, covers 25% of public spending each year, some argue the wealth tax isn’t needed.
“To me, it’s more about fairness,” says Simen Markussen, director of the Ragnar Frisch Centre for Economic Research in Oslo. “It ensures that capital owners who don’t earn labor income pay a reasonable amount of tax. It redistributes from the richest to everyone.”
The tax is especially effective for the very wealthy, as it makes up the bulk of their personal tax contributions.
While the amounts collected aren’t enormous, they are meaningful. “Compared to all personal income taxes, it’s about 4.5%,” Markussen notes. “It’s significant enough that if a politician proposes abolishing it, they should be asked how they plan to make up for the revenue. Do they intend to maintain that income, or what will they cut?”
Karl Munthe-Kaas, who founded the grocery delivery service Oda—Norway’s first “unicorn” startup valued at over $1 billion—exited the company last year and no longer pays the wealth tax, though he did in the past. He believes the tax works well and would prefer a reduction in corporation tax instead.
“The wealth tax isn’t a choice between value creation and distribution—it supports both,” he says. “Any tax reduces the ability to invest or consume, no matter who pays it. Taxing the rich isn’t fundamentally different from taxing the middle class in that sense. So when wealthy people complain about having less to invest, the same could be said for anyone.”
André Nilsen, a neuroscientist and millionaire through family wealth and investments, pays a small amount in wealth tax each year. He supports keeping the tax because it helps fund social security. “It’s easier to get rich in Norway compared to other countries. You’re free to pursue bold ideas because there’s a safety net to catch you if things don’t work out,” he explains.
Although the wealthy often donate generously to charity, he believes that cannot replace taxation. “There has to be a system that ensures everyone contributes at least a minimum.”
Other countries, like the UK, tax dividends, capital gains, and inheritance instead of a wealth tax. However, these rates are often lower than taxes on wages, and there are many loopholes and discounts available.
Alstadsæter points out that the wealth tax is harder to avoid: “It’s the only tax that can’t be dodged through restructuring while living in Norway, which is why there’s opposition to it.”
Frequently Asked Questions
Of course Here is a list of FAQs about the wealth tax and its role in Norways election designed to be clear and conversational
BeginnerLevel Questions
1 What is a wealth tax
A wealth tax is a yearly tax paid on the total value of what you own like property savings and investments after subtracting any debts
2 Why are people in Norway so angry about it right now
Many business owners and farmers feel the current tax unfairly targets them They argue it taxes them on the estimated value of their business or land not the actual cash they make which can force them to sell assets just to pay the tax bill
3 How did this become a big election issue
The centerleft government wanted to keep or even increase the wealth tax to fund public services The centerright opposition parties promised to reduce or scrap it arguing it hurts investment and job creation This clear divide made it a central topic for voters
4 Who has to pay the wealth tax in Norway
Individuals not companies pay it You only pay if your net wealth is above a certain threshold which is currently 17 million NOK for single individuals
Intermediate Advanced Questions
5 Whats the main argument FOR keeping the wealth tax
Supporters say it promotes fairness and reduces inequality by ensuring the wealthiest contribute their share The revenue funds Norways strong welfare state including healthcare education and pensions which benefits everyone
6 Whats the main argument AGAINST it
Opponents say it discourages investment hurts entrepreneurs and can cause a brain drain where wealthy individuals move their money or themselves to countries with lower taxes They also argue its complex and expensive to administer
7 Can you give a simple example of how it works
If you own a house worth 5 million NOK and have a mortgage of 2 million NOK your net wealth is 3 million NOK After subtracting the taxfree threshold you would be taxed on 13 million NOK
8 Is this a new tax in Norway
No Norway has had a form of wealth tax for over a century The current debate is about its rate structure and whether its still fit for purpose in the
