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Comment by bwb | Hacker News Reader

Whats funny is this exempts business assets lol.

Just increase the tax on dividends and capital gains in a progressive manner. And be prepared if the economy slows as a result (not up to date on what economists report there). Spain has a wealth tax and their economy is not doing so well. Everyone in Spain shields it by putting it in real estate and putting a business around it. And nobody can sell their business as that opens them to the wealth tax, so you get wage stagnation, and a general economic malaise as zombie companies limp along.

Nice flashy website though.

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I am from Spain, the system is just a joke. It is not taxing the wealthy people, just those wealthy enough to live well but not worth creating a holding company, which is in most cases working people with well-paid jobs and not the so hated businessman.

The worst is for angel investors in Spain...

You invest in 10 companies; each has another round and you pay wealth taxes on the valuation of that investment every single year, even as 9 of them crash you get no deduction, you just pay taxes on the valuation. It is such a broken system which is a pity as the Spanish people are amazing!

Wow. I didn't know that. It's crazy.

I am aware of the legal and tax burdens that many entrepreneurs suffer because of the exit tax. That's the reason why many of them (me included) decide to open their companies directly in the U.S., which makes Spain to continue becoming more poor.

I really don't understand how we passed from being the biggest world empire to where we are right now in barely 500 years.

Ya, I run into a lot of EU citizens who open companies in the USA for similar reasons...

Check this out as group trying to change this -> https://eu-acc.com/

I love Spain; I want to live there and start a business there (and hire there). But I can't because my tax rate in some years will be 110% (or more) of my personal income. I was going to owe more than I made every year which blows my mind...

Part of that is because I am stuck between the Spanish and American tax systems, and the American tax system seems to not recognize wealth taxes, so I can't get a tax credit for what I pay in Spain (Spain caps total taxes at 60% when combining the wealth tax with income to try to stop the problem I sketch out).

I still have hope that one day I can move to Spain and this will get sorted.

Norway has a wealth tax too, and the wealth tax applies to your shares as well, so wrapping a business around your holdings at best gives you a discount.

Does Norway have capital gains?

Switzerland also has a wealth tax. It can work in small countries with unique resources or focuses. But they are the few, and Switzerland treats it more like a club with negotiating on the top end.

Yes, up to 38% (above a threshold, and with heavy deductions for holding an asset long-term)

Switzerland is the favored destination for rich Norwegians seeking to avoid Norwegian wealth tax, as it typically ends up far lower - not sure of the specifics.

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