- Vestas CEO Henrik Andersen threatened to relocate investments if Denmark passes a proposed wealth tax law.
- The Social Democrats propose a 0.5% annual tax on net fortunes exceeding 25 million kroner.
- Business leaders warn of a potential entrepreneur exodus similar to recent capital flight seen in Norway.
(DENMARK) — Vestas CEO Henrik Andersen threatened to leave Denmark and relocate the company’s investments if Prime Minister Mette Frederiksen’s proposed wealth tax becomes law.
Andersen’s warning put the wind turbine maker at the center of a fast-moving election debate, as business leaders sharpen criticism of a plan the Social Democrats unveiled ahead of March 24, 2026 snap parliamentary election.
Erling Daell, owner of Harald Nyborg retailer, threatened to move his billion-kroner operations abroad and called the tax “deeply unintelligent and short-sighted.”
Martin Thorborg, CEO of Dinero accounting firm, called it “deeply unfair,” and said it could trigger an entrepreneur exodus like Norway’s, where 105 wealthy individuals with fortunes over 100 million Norwegian kroner left between 2022-2024 after tax hikes.
Frederiksen announced the proposal on February 26, 2026, seeking to reinstate a wealth tax abolished in 1997 and pitching it as a response to inequality.
The Social Democrats’ plan would impose a 0.5% annual tax on net fortunes exceeding 25 million kroner ($2.6 million) for individuals and 50 million for couples.
Officials project it would affect about 22,000 Danes, less than 1% of the 6 million population, and raise 6-7 billion kroner ($1 billion) a year.
The average payment would be 300,000 kroner per affected person.
The tax base would cover all assets, including bank deposits, home equity, business holdings and pension savings, minus debts.
Business opposition has focused on the risk that a levy on accumulated assets could drive investment elsewhere, even if taxpayers remain in Denmark.
Dansk Industri Political Director Morten Høyer forecast a 0.5% annual GDP drop, which he put at 16 billion kroner in lost output.
Høyer warned the losses would harm jobs, schools and healthcare more than the revenue gained.
Frederiksen has justified the plan by pointing to widening inequality, saying the top 1% hold a quarter of net wealth.
She has also cited a rise in Denmark’s Gini coefficient of 6 points over two decades.
Supporters of the proposal have pointed to voter sentiment as the election approaches.
An early February 2026 Oxfam Danmark poll found nearly half of voters support the tax.
The proposal has also exposed tension on the left, where Frederiksen may need support to govern after the vote.
Enhedslisten, the far-left party, has pushed for a stricter 1% tax on fortunes over 35 million kroner.
Enhedslisten’s model would target 14,000 people and raise 10 billion kroner, and the party has framed it as a coalition condition.
Right-leaning parties have seized on the warnings from executives and investors, arguing Denmark risks becoming less competitive if it adds a new levy on wealth.
Foreign Minister Lars Løkke Rasmussen, from the Moderate party, has cited Norway’s experience and warned about capital flight.
He has also pointed to competitiveness concerns versus Sweden.
The wealth tax dispute has unfolded as Denmark adjusts other parts of its tax system in 2026.
Denmark’s 2026 income tax reforms added layers, with a bottom at 12.01%.
The reforms also set middle/top at 7.5% from 696,956/845,543 DKK.
A top-top layer of 5% applies above 2,818,152 DKK.
Those layers sit atop Europe’s highest 60.5% top marginal rate, adding fuel to business arguments that a wealth tax would stack a charge on assets on top of high income taxation.
The proposed wealth levy would apply to some of the country’s best-known fortunes, and the debate has elevated the list of who might pay.
Billionaires potentially affected include Lego heir Kjeld Kirk Kristiansen ($11.3 billion).
Others include Coloplast’s Niels Louis-Hansen ($6 billion) and Bestseller’s Anders Holch Povlsen ($6.8 billion).
For Frederiksen and the Social Democrats, the fight now runs through two tracks at once: persuading voters the tax will narrow inequality while convincing employers the levy will not drain investment.
For opponents, the business threats and the Norway comparison have become central talking points, with executives and party leaders arguing Denmark should avoid policies they say weaken competitiveness.
The election outcome will decide the wealth tax plan’s fate.
