From Norway to France: How countries tax wealth and property

The government said on October 29⁠ that a higher tax rate for holders of large fortunes was under consideration, with international experience being examined to develop a suitable approach for Kazakhstan. The announcement did not specify a rate or a threshold for who would qualify.

Other countries offer very different answers. Norway taxes accumulated net wealth each year. France focuses on real estate. Several countries have abandoned broad wealth taxes after struggling with their cost and complexity.

For Kazakhstan, the choice involves more than deciding on a percentage. It means deciding what counts as wealth in the first place.

A large fortune does not always mean a large income

Consider two hypothetical people: one earns a high salary but has few savings, while another owns valuable property but receives little income. A tax on earnings and a tax on assets would affect them differently.

The same question arises for a business owner whose fortune consists mainly of shares in a company. Those shares may be valuable, but their value is not the same as money available in a bank account.

An International Monetary Fund paper published in 2024⁠ distinguishes three ways to tax wealth: taxing the income it generates, taxing the assets themselves, or taxing their transfer through inheritance.

In everyday terms, governments can tax the return on an investment, the value of the investment, or the wealth passed to the next generation.

What taxpayers pay in Norway and France

Norway’s system looks beyond salaries. Its net wealth tax covers assets including property, bank deposits, shares and business capital, after deductions for debt and applicable valuation discounts.

According to the Norwegian Tax Administration’s 2026 schedule⁠, the first 1.9 million Norwegian kroner of an individual’s taxable net wealth is exempt.

The combined national and municipal rate is 1% on the portion above 1.9 million kroner up to 21.5 million kroner. The rate rises to 1,1% on the portion above 21.5 million kroner. The thresholds double for couples assessed jointly.

These percentages apply to taxable net wealth, which can differ from an asset’s market price because of deductions and valuation rules.

France takes a more targeted approach. Its real estate wealth tax, known as IFI, applies when net taxable property wealth exceeds 1.3 million euros.

The French government’s public service portal⁠ lists progressive rates ranging from 0,5% to 1,5%. Once the entry threshold is crossed, the calculation begins with the portion of taxable property wealth above 800,000 euros.

That does not mean someone with property worth 1.35 million euros pays 1,5% of the entire amount. In the government’s example, a person with net taxable property wealth of 1.35 million euros owes 2,225 euros after a reduction available near the threshold.

The example shows why the headline rate alone tells only part of the story. Thresholds, deductions and the way assets are valued determine the actual bill.

Why some countries stopped taxing wealth

Asking wealthier citizens to contribute more may sound straightforward. Collecting the money can be harder.

A 2018 study by the Organization for Economic Cooperation and Development⁠ found that 12 member countries imposed recurrent individual net wealth taxes in 1990. By 2017, that number had fallen to four.

The study identified administrative costs, avoidance, risks of capital flight and limited revenue among the reasons cited for removing the taxes. Exemptions also reduced the amount of wealth subject to tax, weakening their ability to redistribute resources.

This raises a practical dilemma: broad rules can be difficult to administer, while generous exemptions can leave much of the intended tax base untouched.

The authors of the IMF’s 2024 paper favor strengthening taxes on the income wealth produces, particularly capital gains, and closing loopholes. They argue that taxing actual returns is generally fairer and causes fewer economic distortions than taxing asset values themselves. They also identify inheritance taxes as a way to address the concentration of wealth across generations.

For Kazakhstan, these examples bring several decisions into focus. Would a future measure cover property, financial investments and business ownership? Would debts reduce the bill? How would assets be valued, and what would happen when someone owns valuable assets but has little cash income?

The government’s proposals will need to answer those questions before taxpayers can assess the impact. Until then, the central issue is not simply how much the wealthy should pay, but how their wealth would be defined and measured.

Earlier, Qazinform News Agency reported that France's National Assembly approved a proposed tax of €0.055 per gigabyte of data delivered to internet users as part of discussions on the country's 2027 budget. The measure would apply to companies distributing digital content, including streaming services, social media platforms and video game distributors, rather than internet subscribers or telecommunications operators.