Spotify Technology co-founder Martin Lorentzon said he would leave Sweden immediately if the country introduces new wealth taxes, escalating concerns that proposals being debated ahead of this month’s election could drive entrepreneurs and capital abroad. Both are part of the center-left opposition led by the Social Democrats, which is ahead of the governing right-wing bloc in recent polls, and could wield influence over tax policy after the Sept. 13 vote. A wealth tax is opposed by the current center-right government, as well as by Social Democratic leader Magdalena Andersson, who has ruled out restoring Sweden’s former wealth, inheritance and gift taxes.
Even so, investors are trying to assess what compromises might emerge after the election. Lorentzon, who has an estimated net worth of more than $11 billion according to the Bloomberg Billionaire’s Index, urged politicians to consider higher taxes on capital or dividends instead. The tax is directly counterproductive.” Lorentzon’s comments are one of the most dramatic indications yet of how some wealthy Swedes would react to the introduction of new wealth taxes.
Nordic Capital executive Klas Tikkanen previously told Bloomberg that the proposals could produce “a real exodus,” while entrepreneurs and advisers have said some are already examining the option of relocating abroad. Lorentzon said the discussions about new taxes have already done some damage by creating uncertainty. Such fortunes often consist of illiquid company stakes rather than cash, he argued, meaning founders could be forced to sell shares to meet their tax bills.
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