The government and SV have agreed to narrow two tax loopholes for wealthy Norwegians who take their wealth abroad. They will also investigate the exit tax for riches.
– There are clear restrictions because values created in Norway should also be taxed in Norway, says Aps Frode Jacobsen in the finance committee of the Storting.
This was announced by APS Hadja Tajik already in September that it would be relevant to try to tighten up the so-called five-year rule.
There was an agreement that meant Norwegians who took their wealth abroad did not have to pay taxes to Norway, for example, on stock sales after five years. Under current rules, they could go home after five years without paying capital gains tax.
- The so-called five-year rule is repealed with effect from today
- Shares transferred to all close relatives residing abroad will trigger expatriation tax. Previously, this only applied to spouses
The debate was adjourned again this autumn after Kjell Inge Røkke announced that he had moved to Switzerland.
It was the start of a dwindling stream of super-rich Norwegians who, over the past couple of months, have reportedly moved into the low-tax Alpine country.
– Unreasonable
Jacobsen tells VG that the new tax rules will be more effective at discouraging tax-motivated relocations.
Today capital gains taxes are paid when values are realised, i.e. when dividends are paid or shares are sold. This made the so-called five-year rule controversial.
– A number of wealthy Norwegians have taken their wealth abroad with them in the past year. Why are you doing this now?
– Because it is unreasonable for people who made their fortunes in Norway not to pay taxes on the values that were created here. Quite often, a large part of the wealth is also due to having had tax-deferred payments, Jacobsen says and adds:
– Under current rules, they can move abroad with assets that contain a lot of deferred taxation, then move home after five years without having to pay taxes. Fortunately, it will end today, he says.
Investigations on the exit tax
He says the government has also agreed to investigate a so-called exit tax.
This means that people moving abroad have to pay the deferred tax when they leave the country.
– It will be important to introduce a so-called exit tax as quickly as possible. The five-year rule will prevent people from being able to move houses after five years and avoid the taxes they would have had to pay, Jacobsen says and adds:
– The exit tax will ensure that those who move pay the tax that has been deferred. But this needs to be studied to create effective regulations, she says.
