Several European countries have repealed wealth taxes in recent decades. As of 2025, only three still impose a tax on individual net wealth, while a few others levy taxes only on selected assets.
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Wealth inequality is evident worldwide, including in Europe. As of early 2025, the wealthiest 5% of the population in the eurozone controlled 45% of net household wealth, while the top 10% held 57.4%, according to the European Central Bank (ECB).
This concentration of wealth keeps the debate over wealth taxes at the centre of discussions in many countries. Most recently, French billionaire Bernard Arnault strongly opposed a proposed 2% levy on citizens with assets over €100 million, calling it “an offensive that is deadly for our economy”.
So, in which European countries does a wealth tax exist? How much revenue do these countries collect from individual wealth taxes? And what share of total tax revenue comes from wealth taxes across Europe?
According to the Tax Foundation, as of 2025, taxes on individuals’ net wealth exist only in Spain, Norway, and Switzerland. The tax rates and the thresholds for taxable wealth vary across these countries.
In addition, France, Italy, the Netherlands, and Belgium impose wealth taxes on specific asset classes, but not on individuals’ overall net wealth.
Spain: Spain’s net wealth tax is progressive, ranging from 0.16% to 3.5% on wealth exceeding €700,000. Residents are taxed on their worldwide assets, while non-residents are taxed only on assets located in Spain.
In 2022, the Spanish central government introduced an additional “solidarity wealth tax”, with rates ranging from 1.7% to 3.5% on individuals holding net assets above €3mn. Initially designed as a temporary measure to address the cost-of-living crisis, it has since become permanent. This is complementary to wealth tax.
Norway: Norway levies a net wealth tax of 1% on individual wealth exceeding NOK 1.7mn (€145,425) and up to NOK 20mn (€1.71mn). For wealth above NOK 20mn, the rate increases to 1.1%. Of the total, 0.7% goes to municipalities and 0.3% to the central government.
Switzerland’s middle class is largely affected
Switzerland: According to the OECD’s ‘The Role and Design of Net Wealth Taxes’ report, Switzerland’s net wealth tax features relatively low exemption thresholds, which vary across cantons. As a result, it does not target only the wealthiest households but also affects a significant share of the middle class.
In 2025, according to PwC, in Zurich the tax begins at CHF 80,000 (€85,560) for single taxpayers, with a starting rate of 0.05%. For married taxpayers and single parents with minor children, the threshold rises to CHF 159,000 (€170,090). The rate gradually increases and reaches 0.3% on wealth exceeding CHF 3,262,000 (€3.49mn) for singles, and CHF 3,342,000 (€3.58mn) for married taxpayers and parents with minor children.
Wealth taxes on only selected assets
France: Tax residents in France are subject to a real estate wealth tax if their net worldwide real estate assets are valued at €1.3mn or more. Non-residents are also liable if the value of their French real estate assets meets or exceeds the same threshold. Depending on the net value of the assets, the tax rate can be as high as 1.5%.
Italy, Belgium and the Netherlands also levy some taxes on wealth such as financial assets.
Wealth tax revenues in Europe: How much do countries collect?
The amount of revenue generated from wealth taxes, and their share of total tax revenues, reflects their significance and effectiveness.
According to the OECD, Switzerland raised €9.5 billion from individual wealth in 2023, representing 4.3% of overall tax revenues. In Spain, the figure was €3.1bn, equal to 0.6% of the total. Norway generated €2.7bn, or 1.5% of its tax revenues, while France collected €2.3bn, corresponding to just 0.2%.
Their share of GDP is relatively small. In 2023, revenues from individual net wealth taxes ranged from 0.21% of GDP in Spain to 1.16% in Switzerland.
Which countries repealed wealth tax in recent decades?
“Although discussions about imposing wealth taxes are increasing, especially as governments seek to target the wealthy and generate revenue, the overall trend is to repeal them,” Cristina Enache, economist at Tax Foundation, told Euronews Business.
Over the past three decades, several countries have repealed individual wealth taxes. The number of OECD members levying such taxes fell from 12 in 1990 to just 4 in 2017. They are European countries: Austria (1994), Denmark (1997), Germany (1997), the Netherlands (2001), Finland, Iceland, and Luxembourg (all in 2006), and Sweden (2007).
Why were wealth taxes abolished?
Several reasons have been cited to justify the repeal of net wealth taxes. The key arguments focus on efficiency costs and the risk of capital flight according to the OECD report. It found that given increased capital mobility and wealthy taxpayers’ access to tax havens, “net wealth taxes often failed to achieve their redistributive objectives”.
Risk of capital flight
Cristina Enache noted that the high expectations often collide with the practical realities of how taxpayers respond as more countries are discussing wealth taxes to target the rich and generate substantial revenue.
“When a tax is heavily concentrated on a few wealthy, highly mobile individuals, even a small increase in the tax rate can lead to capital flight and wealthy individuals relocating to neighbouring jurisdictions,” she said.
Enache also pointed out taxpayers fleeing the country are not only taking the wealth tax revenue with them but also the income and consumption tax revenue, which are the most important sources of revenue for European countries.
