Billionaire Threatens to Flee Denmark Over Wealth Tax

Steven Højlund

Writer

February 28, 2026
7:54 am

A prominent Danish business owner has threatened to relocate his billion-kroner company out of Denmark following the Social Democrats’ proposal to introduce a wealth tax on the country’s richest citizens. The proposal has ignited fierce debate ahead of the March 2026 election, with business leaders warning of economic damage while supporters defend it as essential for funding welfare services.

Wealth Tax Proposal Sparks Fierce Opposition

The Social Democrats have made a wealth tax a centerpiece of their election campaign. Prime Minister Mette Frederiksen announced the proposal during Thursday’s election announcement speech in Parliament. She argued that wealth inequality has grown too severe in Denmark, pointing out that the wealthiest one percent now control roughly a quarter of the nation’s total net wealth.

Details of the Proposed Tax

The proposed wealth tax would apply to fortunes exceeding 25 million kroner for individuals and 50 million kroner for couples. The tax rate would be set at 0.5 percent annually. According to Socialdemokratiet, the measure would affect approximately 22,000 Danes and generate between six and seven billion kroner in annual revenue for the state.

The tax would cover all forms of wealth. This includes bank deposits, home equity, business holdings, and pension savings. For those affected, the average annual payment would amount to roughly 300,000 kroner.

Major Business Owner Issues Stark Warning

Harald Nyborg owner Erling Daell has emerged as one of the most vocal critics of the proposal. He told financial media outlet Finans that he considers the wealth tax deeply unintelligent and short sighted. Daell went further, threatening to relocate his entire business operation out of Denmark if the tax becomes reality.

The Harald Nyborg retail chain represents significant economic weight in Denmark. The company generated nearly nine billion kroner in revenue during 2024 and paid 159 million kroner in corporate tax. According to the Tax Ministry’s rankings, this makes Harald Nyborg the 55th largest corporate taxpayer in the country.

Economic Impact Warnings From Multiple Quarters

Business organizations and wealthy entrepreneurs have lined up to criticize the proposed wealth tax. Their warnings focus on potential damage to Denmark’s economic competitiveness and the risk of capital flight to neighboring countries.

Industry Association Predicts GDP Reduction

Dansk Industri has released analysis suggesting serious economic consequences. The organization estimates that the wealth tax could shrink Denmark’s GDP by 0.5 percent annually. This translates to roughly 16 billion kroner per year in lost economic output, significantly more than the projected tax revenue.

Political Director Morten Høyer from Dansk Industri emphasized that a smaller economy means less money available for public services. He argued that reduced GDP would ultimately hurt funding for schools and healthcare. The organization also warns that family owned businesses would face particular difficulties, potentially leading to job losses.

Wealthy Entrepreneurs Voice Concerns

Other prominent business figures have joined the criticism. Martin Thorborg, CEO of accounting firm Dinero and a wealthy entrepreneur himself, called the proposal deeply unfair. He argues that it allows the majority to vote themselves access to the minority’s money.

Thorborg stated he pays substantial taxes already and believes the wealth tax would make Denmark poorer overall. While he does not plan to leave Denmark personally, he predicts other entrepreneurs and business leaders might choose to relocate. He specifically pointed to Norway as a cautionary example, where wealthy individuals have emigrated following the introduction of a similar wealth tax.

Political Battle Lines Clearly Drawn

The wealth tax debate has become a defining issue in the election campaign, with parties taking sharply opposing positions during televised debates and public statements.

Liberal Alliance Leads Right Wing Opposition

Liberal Alliance political leader Alex Vanopslagh has emerged as one of the most outspoken opponents. During Thursday’s televised party leader debate, he labeled the proposal a jealousy tax. He argues it punishes success rather than encouraging entrepreneurship and business growth.

Vanopslagh responded to Daell’s relocation threat by calling it entirely predictable. On social media platform X, he wrote that Norway’s wealth tax has already triggered an exodus of business owners. He contends that the proposal reflects left wing desire to punish success, regardless of the cost to Denmark’s future prosperity.

According to Vanopslagh, Denmark already faces disadvantages compared to Sweden in attracting entrepreneurs. He argues the wealth tax would make this situation worse. The Liberal Alliance leader insists that ordinary Danes, not just the wealthy, will ultimately pay the price through reduced economic growth and fewer job opportunities.

Social Democrats Defend Inequality Reduction

The Social Democrats have stood firm in defending their proposal. Political spokesperson Christian Rabjerg Madsen told Finans that the tax aims to safeguard Denmark’s welfare state. He emphasized that inequality has grown consistently over the past 40 years.

Madsen argues that addressing wealth concentration is necessary for maintaining social cohesion. The party positions the wealth tax as a fairness measure that ensures those with the greatest ability to contribute do so. They contend the revenue will fund essential public services that benefit all Danes.

During the election announcement, Mette Frederiksen framed the issue as a question of values. She suggested that extreme wealth concentration undermines the Danish model of society. The Social Democrats argue their proposal represents moderate redistribution rather than radical change.

International Comparisons and Economic Debate

The discussion around Denmark’s proposed wealth tax has drawn attention to similar policies in other countries, particularly within Scandinavia.

Norwegian Experience Central to Arguments

Critics of the wealth tax repeatedly cite Norway’s experience as evidence of potential problems. Norway implemented a wealth tax that has reportedly led to emigration of wealthy individuals and business owners. Opponents argue this demonstrates the risk of capital flight if Denmark proceeds.

Business leaders suggest that wealthy Danes would face similar incentives to relocate to countries without wealth taxes. Sweden, which does not have a wealth tax, is frequently mentioned as a likely destination. The proximity and cultural similarities make it an attractive alternative for Scandinavian entrepreneurs.

However, supporters counter that each country’s situation differs. They note that Norway’s oil wealth creates unique economic dynamics. Denmark’s smaller size and different industrial structure might produce different outcomes, though this remains contested.

Broader Questions About Business Climate

The wealth tax debate connects to larger concerns about Denmark’s competitiveness. Some business leaders argue that regulatory burdens and high taxation already create challenges. They contend that adding a wealth tax would push Denmark past a tipping point.

Defenders of the proposal argue that Denmark’s strong welfare state and educated workforce justify higher taxation. They suggest that business owners benefit from public infrastructure and social stability. The Social Democrats maintain that modest wealth taxation preserves rather than threatens this model.

The outcome of this debate will likely influence Denmark’s economic policy for years to come. As voters prepare for the March 24 election, the wealth tax stands as a clear dividing line between competing visions for the country’s future.