Denmark's March 24, 2026 election has placed a wealth tax at the center of the campaign. PM Mette Frederiksen's Social Democrats have proposed a 0.5% annual levy on individual net wealth above DKK 25 million (~€3.35M), projected to raise ~DKK 6-7 billion/year and affect roughly 22,000 taxpayers. The far-left Enhedslisten (Red-Green Alliance) has proposed a more aggressive 1% tax on fortunes above DKK 35 million and has made passing a wealth tax a condition of coalition support.
The proposal is opposed by all right-of-centre parties as well as the centrist Moderates. Denmark previously had a wealth tax but abolished it in 1997. Whether it returns depends on coalition arithmetic — specifically whether the left-wing "red bloc" can secure 90+ seats without needing the Moderates.
Resolution criteria:
Resolves YES if the Danish Folketing passes legislation imposing a recurring annual net wealth tax on individuals, and the law is signed/enacted, by December 31, 2027.
Resolves NO if no such legislation has been enacted by December 31, 2027.
Key clarifications:
The tax must be a recurring annual wealth tax on net assets, not a one-off levy or capital gains tax.
The specific rate and threshold do not matter — any version (Social Democrat, Enhedslisten, or compromise) counts.
The tax does not need to have been collected yet, just enacted into law.
If legislation is passed but immediately repealed before the close date, resolves NO.
An "exit tax" on wealth leaving Denmark does NOT count unless it is paired with a recurring annual wealth tax on domestic residents.
1,000Denmark context, do they have:
Progressive income tax – Yes, tax on income from employment increases with your wage.
Wealth tax – No/(not yet), tax on money you already own, only applied to the extremely wealthy.
Chat GPT regarding what proposals say the wealth tax would apply to:
Bank accounts – cash, deposits – ✅ – explicitly part of liquid assets.
Listed investments – stocks, bonds, funds – ✅ – included as securities.
Unlisted shares / private businesses – ✅ – valued even if illiquid.
Real estate / property – ✅ – included at market value.
Pension savings – ✅ – in some proposals.
Commodities formally stored in vaults/banks (gold, silver, etc.) – ✅ – implicitly.
Counted as part of total wealth if owned
Commodities stored at home – ✅ – in principle, the location is irrelevant, ownership is what matters.
Business-owned assets (via personal ownership) – ✅ – if you own the company shares, value is taxed.
Assets held via organisations / holding companies – ✅ – look-through likely.
Personal valuables (art, jewellery, etc.) – 🤷♂️ – usually included in net wealth systems unless exempted.
Debt (mortgages, loans) – ❌
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Personally I'm struggling to see how this is enforceable against expensive items kept at home, but I don't live in Denmark. I do see that some amount of wealth tax, including only a small amount, would be a pressure towards stabilisation, and Denmark seems to value stability.
@AlanTennant Mette has walked back at least in some respects the claims on illiquid assets after a startup founder with a company worth 50m DKK on paper but taking home a tiny salary went viral on LinkedIn.