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The Dutch tax from cursory reading is not comparable - apparently, if you pay wealth tax, you are exempt from capital gains tax; also, if your wealth is real es
by beagle3 6y ago
The Dutch tax from cursory reading is not comparable - apparently, if you pay wealth tax, you are exempt from capital gains tax; also, if your wealth is real estate outside of the Netherlands, it is not taxed.
It may be more comparable to Norway’s wealth tax, which is 0.85% of everything above 200K€ (With some provisions for primary residence and illiquid shares IIUC, discounting these somewhat)
A Norwegian tax professional I had a chance to talk to a few months ago claimed that wealthy people were leaving Norway because of the wealth tax. Are there any Norwegians in the forum that can say more about this?
- throwaway2245 6y agoThat's a fair critique. I understand the Dutch tax replaces capital gains with a fixed amount based on your total wealth (not your gain). So a fair comparison with California should probably include an additional amount for California's CGT. They present it in the Netherlands as if you are paying 30% "capital gains" tax on an assumed-fixed gain of 5.28%, your actual gain becoming irrelevant under this system. You also pay this earlier - annually, not at the point of realising the profit. Overall, the Dutch total tax on wealth is still going to be considerably higher.
- Thlom 6y agoNorwegian here. Some filthy rich are moving their assets or even themselves to tax havens. F.ex. Norways richest man, the oil and shipping millionaire John Fredriksen made himself a Cypriot a few years ago. Some other are transferring their assets to their children who live in f.ex. Switzerland. But overall I don't think capital flight is a huge issue.