Last Updated on October 1, 2025
The debate over a wealth tax in Europe has reignited as governments search for ways to reduce inequality and raise revenue. While only a handful of countries still impose taxes on net wealth, discussions continue across the continent.
How Wealth Is Concentrated in the Eurozone
According to the European Central Bank, as of 2025:
- The wealthiest 5% of households in the eurozone control 45% of net wealth.
- The top 10% own 57.4%.
This concentration of wealth fuels ongoing political and economic debates about fairness and redistribution.
Recently, French billionaire Bernard Arnault criticized a proposed 2% wealth tax on citizens with assets above €100 million, calling it “deadly for our economy.”
Which Countries Still Have a Wealth Tax?
As of 2025, only Spain, Norway, and Switzerland levy a direct tax on individual net wealth. Other countries, such as France, Italy, Belgium, and the Netherlands, only tax specific assets (like real estate or financial holdings).
Spain
- Progressive wealth tax ranging from 0.16% to 3.5% on assets above €700,000.
- Residents taxed on global assets; non-residents taxed only on Spanish assets.
- An additional “solidarity wealth tax” applies above €3 million, introduced during the cost-of-living crisis and now permanent.
Norway
- Wealth tax of 1% on net assets between NOK 1.7 million (€145,000) and NOK 20 million (€1.7 million).
- Above that threshold, the rate rises to 1.1%.
- Revenues are split between municipalities (0.7%) and the central government (0.3%).
Switzerland
- Varies by canton; relatively low thresholds mean it impacts more than just the ultra-rich.
- In Zurich, for example, single taxpayers start paying above CHF 80,000 (€85,500), while families have a higher exemption.
- Rates begin at 0.05% and rise to 0.3% for multimillionaires.
The table compares Spain, Norway, and Switzerland’s wealth taxes in 2025:
| Country | Taxable Assets / Threshold | Tax Rate Range | Key Features |
|---|---|---|---|
| Spain | Above €700,000 (worldwide assets for residents, Spanish assets for non-residents) | 0.16% – 3.5% + “Solidarity Tax” (1.7% – 3.5% above €3m) | Progressive, global taxation; solidarity tax made permanent |
| Norway | Above NOK 1.7m (€145k) | 1% up to NOK 20m, 1.1% above NOK 20m | Split between municipalities (0.7%) and central gov. (0.3%) |
| Switzerland | Above CHF 80k (€85.5k) for singles; CHF 159k (€170k) for families | 0.05% – 0.3% (varies by canton) | Applies broadly, including to parts of the middle class |
Countries with Asset-Specific Wealth Taxes
- France – Wealth tax applies only to real estate over €1.3 million. Top rate: 1.5%.
- Italy, Belgium, Netherlands – Impose taxes on certain financial or property assets, but not on overall wealth.
How Much Revenue Do Wealth Taxes Generate?
Despite strong political rhetoric, wealth taxes remain a small contributor to overall government revenue:
- Switzerland: €9.5 billion (4.3% of total tax revenue).
- Spain: €3.1 billion (0.6%).
- Norway: €2.7 billion (1.5%).
- France (real estate tax only): €2.3 billion (0.2%).
As a share of GDP, the impact ranges from 0.21% in Spain to 1.16% in Switzerland.
Why Did So Many Countries Abolish Their Wealth Tax?
Over the last 30 years, many European countries eliminated wealth taxes, including Germany, Sweden, Denmark, Austria, Finland, Luxembourg, and Iceland.
The main reasons:
- Capital flight – wealthy individuals moving assets or residency abroad.
- Inefficiency – high administrative costs relative to low revenues.
- Failure to meet redistribution goals – many wealthy households use tax planning or offshore havens to avoid liability.
As economist Cristina Enache of the Tax Foundation notes:
“When a tax is highly concentrated on a few wealthy but mobile individuals, even small increases can trigger capital flight. Countries risk losing not just wealth tax revenue, but also income and consumption taxes.”
What Does This Mean for Personal Finance?
- Investors & High-Net-Worth Individuals: Residency and asset location matter. Moving wealth abroad or shifting into untaxed asset classes can dramatically change tax exposure.
- Middle Class in Switzerland: Lower thresholds mean some households outside the ultra-wealthy still face wealth tax bills.
- Future Homeowners: Property-focused taxes (like in France) could affect the affordability of real estate investments.
- Policy Uncertainty: Even if wealth taxes generate little revenue, political debates may intensify during times of inequality or fiscal stress.
Bottom Line
The wealth tax in Europe is far from uniform. Spain, Norway, and Switzerland continue to levy it, while most countries have abandoned the approach due to inefficiency and capital flight.
For individuals, whether you’re wealthy enough to be directly affected or simply concerned about how these policies ripple through housing markets and investments, staying informed is essential.
FAQs
Which countries still have a wealth tax in Europe?
A: Only Spain, Norway, and Switzerland impose a direct wealth tax on individuals, while countries like France and Italy tax only specific assets.
How much is the wealth tax in Spain?
A: Spain’s progressive wealth tax ranges from 0.16% to 3.5% above €700,000, with an additional solidarity tax starting at €3 million.
Why did many countries abolish the wealth tax?
A: Most ended it due to inefficiency, low revenue collection, and the risk of capital flight, as wealthy individuals often move assets abroad.
How much revenue do wealth taxes bring in?
A: Revenues are relatively small: Switzerland collects 4.3% of its tax income from wealth taxes, Spain 0.6%, and Norway 1.5%.
Does the wealth tax in Europe affect the middle class?
A: In Switzerland, yes. Because thresholds are lower, some middle-class households also pay the wealth tax, unlike in Spain or Norway where it mainly targets the rich.
Featured Image by Leonhard Niederwimmer from Pixabay