Eight of the twelve European countries with a wealth tax in 1990 had abandoned them by 2019. The primary reasons for repeal included:

Insufficient revenue generation: The taxes often raised little revenue, partly because the wealthy found ways to avoid them and partly due to capital flight. High administrative costs: The process of valuing assets for the tax was complex and costly.

Outflow of capital and individuals: This was a major factor, with prominent business people moving abroad, taking their businesses and investments with them.

Sweden

The country repealed its wealth tax in 2007 because it was clearly driving business people and their capital out of the country. A notable example is Ingvar Kamprad, the founder of IKEA, who moved to Switzerland partly due to the tax climate.

France

The French wealth tax was a factor in the exodus of an estimated 42,000 millionaires between 2000 and 2012, which led to the tax's eventual repeal in 2017. The loss of this tax base meant the revenues generated were consistently disappointing.

Norway

A recent, modest increase (1%) in Norway's wealth tax led to a record number of super-rich individuals leaving the country in 2022 and 2023. Research associated with the event found that when an entrepreneur subject to the wealth tax out-migrates, there are significant local negative effects on their businesses, including drops in employment (33%) and investment (21%), suggesting a broader negative impact beyond just the lost tax receipt of the individual.