Publication of the study on Wealth Taxation, Including Net Wealth, Capital and Exit Taxes

Against the backdrop of global discussions in international fora such as the OECD, the G20 and the UN, this study was commissioned in 2024 to support an informed debate. It consists of two volumes. The first volume provides a comprehensive overview across five categories of taxes, surveying academic literature in both EU and non-EU countries and mapping the existing wealth-related tax regimes in EU Member States.

This helped to identify areas of consensus in the research as well as areas which require additional analysis to better understand the consequences of certain taxes. For example, while there is some evidence of the effects of net wealth taxes and inheritance and gift taxes on intranational mobility of individuals, there is limited evidence with regards to international mobility of ultra-high-net-worth individuals.

The second volume is structured around case studies from countries which currently have or have had a wealth tax, to better understand the overall implications of these. The study includes an in-depth analysis of 4 Member States (Austria, France, Germany, Spain) and 3 non- EU countries (Norway, Switzerland, Colombia).

The analysis shows how the outcome of these taxes, both in terms of revenue and in promoting both horizontal and vertical equity, is strongly influenced by tax design and taxpayers' responses. In practice, the wealth taxes examined have not been a major source of revenue and the study points to tax gaps - due to tax reliefs, exemptions or inadequate compliance - as an explanatory factor. Periodical publication of tax gaps may incentivise voluntary compliances.

The study helps advance the technical understanding of the complexities of wealth-related taxes. Furthermore, and consistent with previous Commission analysis, the study highlights the importance of an effective exchange of information on beneficial owners, on real estate and asset registration. The study also highlights the importance of institutional factors, such as third-party reporting or the digitalisation of tax administrations.