The EU Wants to Tax Large Fortunes More Heavily
The European Commission’s 2026 wealth-taxation study examines net wealth, capital gains, inheritances, gifts, and exit taxes. Here is what the policy direction could mean for internationally mobile families.
The European Commission has just released a major three-volume study in March 2026 titled “Wealth Taxation, Including Net Wealth, Capital and Exit Taxes”. The message from Brussels is clear: those with substantial wealth will be expected to contribute more. According to the report, the top 10% of the EU population now hold around 60% of total household wealth, while the top 1% continue to increase their share faster than the global average. In response to this rising wealth concentration, policymakers are focusing directly on high-net-worth assets. The study thoroughly examines five key tax instruments:
- Recurrent net wealth taxes
- Taxes on unrealised capital gains (accrual taxation)
- Taxes on realised capital gains
- Inheritance and gift taxes
- Exit taxes
The core conclusion of the report is straightforward: current wealth-related taxes are too weak, full of exemptions, loopholes, and inconsistent valuations. The goal is to make them more effective - meaning broader, harder to avoid, and more revenue-generating. Key directions highlighted in the report include:
- Broader tax bases with fewer exemptions and reliefs
- Digital asset registers and improved third-party reporting
- Stronger international cooperation and automatic exchange of information
- Specialised units focused on monitoring High Net Worth Individuals (HNWIs)
- Reinforced exit taxes to address international mobility
While the report acknowledges past failures - such as the repeal of net wealth taxes in Germany and Austria due to low revenue and high administrative burdens - it focuses on learning from those mistakes to design more robust systems.