– I chose Lugano as my new place of residence – it is neither the cheapest nor has the lowest taxes, but in return it is a great place located in the center of Europe. This is how Kjell Inge Røkke explains the change of address to Lugano in Switzerland. But several experts point to the very favorable tax benefits in the country as a more likely reason. Switzerland is ranked number 5 on the organization Tax Justice Network’s list of the world’s largest tax havens. In total, the network estimates that Switzerland alone causes other countries an annual loss of $2 billion by offering billionaires favorable tax rules. But what are these rules – and which Norwegians have made use of them? Norway loses many hundreds of millions The decisive factor is that Røkke now avoids both wealth tax and tax on dividends from shares, explains tax expert Eivind Furuseth. Associate professor at the Department of Jurisprudence and Governance, Eivind Furuseth. Photo: WILLIAM JOBLING / news – By moving to Switzerland, Røkke now avoids paying wealth tax to Norway, which is one of the highest wealth taxes in the whole world. In addition, if he lives in Switzerland for more than five years, he does not have to pay tax on dividends from his shares, he says. For Norway, the move entails a loss of hundreds of millions of kroner a year. In 2020, according to the tax list, Røkke paid NOK 175 million in taxes, which made him Norway’s second largest taxpayer. And since 2012, Røkke has paid a total of 1.2 billion in tax. Can negotiate own tax rate Exactly how much Røkke will save is difficult to calculate. The Swiss tax system is complicated. That’s because the country is divided into 26 cantons, small regions with a high degree of autonomy. And each canton can determine its own tax rules. In addition, some of the taxes are collected at federal, municipal and church level. A bit of a patchwork. Switzerland’s 26 cantons. Kjell Inge Røkke will move to the Italian-speaking canton of Ticino in the south. Photo: Arno-nl / Wikimedis Commons According to Eivind Furuseth, you can also individually negotiate how much you pay in wealth tax with the various authorities: – As I understand it, it is common to have a meeting with the tax authorities when you move to Switzerland, and then an agreement is reached. Kjell Inge Røkke says he will gradually step down from the boards of his portfolio companies, and devote himself more to philanthropic activities. Photo: Lise Åserud / NTB Saves around NOK 120 million a year According to an overview from the consulting company Transforma, the wealth tax in Røkke’s new home in Ticino is 0.48 per cent for assets over NOK 52 million. In Norway, it compares to a total of 1.1 per cent on assets over NOK 10 million. In 2020, Kjell Inge Røkke had a net worth of NOK 19.6 billion. If he had the same wealth today, he would save around NOK 120 million just on the lower wealth tax in Lugano.
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That’s why the rich are moving to Switzerland – news Norway – Overview of news from various parts of the country
