Sweden without inheritance tax: economy is flourishing, billionaires are booming!

Sweden without inheritance tax: economy is flourishing, billionaires are booming!

Sweden has established itself as a notable financial market in Europe, particularly through the abolition of inheritance and wealth taxes. Loud Focus The country is now considered a model financial market. This reduction in tax burdens is seen by many as the reason for the high number of billionaires in the country, which has a positive impact on the economy.

According to recent reports, 32 dollar billionaires live in Sweden, while 13 more reside outside the country. This number is notable because Sweden has a higher proportion of billionaires compared to the United States. However, in an interview, political scientist Martyna Linartas expresses concerns about wealth inequality in Germany, which is reinforced by inheritance.

Tax reforms and their effects

In 2004, Sweden abolished inheritance and gift taxes. As a result, the wealth tax was also abolished. These reforms were aimed at making business successions easier and encouraging entrepreneurs to return to Sweden. The positive effects of these measures are clearly visible; Sweden has recorded more company IPOs in the last decade than France, Germany, the Netherlands and Spain combined.

Since the tax reforms, 501 companies have gone public in Sweden. Stockholm also ranks second in the world in the number of unicorns per capita, just behind the famous Silicon Valley. The positive attitude towards wealth and the market economy is strong in Sweden compared to other European countries. Only 32% of Swedes support very high taxes for the rich; among low-income earners it is 37%.

Critical voices and social perception

While the economic indicators are encouraging, Ruchir Sharma writes in the Financial Times that the rise of billionaires in Sweden could also be seen as a potential problem. A global study by the Pew Research Center shows that Sweden and Poland have the lowest proportion of people who perceive inequality as a problem, indicating a different societal perception of social justice.

Despite Sweden's long tradition of social justice and great redistribution, even the Swedish Social Democrats today reject inheritance and wealth taxes. This highlights a significant change in the country's political mentality.

Overall, Sweden shows that tax relief can be seen as an effective instrument for promoting economic development, even in the context of growing wealth disparities. These findings could also be important for other countries.

For further information on the economic and political environment in Sweden, visit Bundestag.