Denmark is taking steps to support family businesses and keep them in the country, with a focus on companies like Lego. In an effort to ease the burden on family businesses, the Danish government is planning to reduce inheritance and gift taxes from 15 to 10 percent, and provide higher rebates for research and development.
The importance of family businesses cannot be overstated in Denmark. With around 60,000 family businesses employing over 800,000 people, Deputy Prime Minister Troels Lund Poulsen emphasized the need to prevent these businesses from being acquired by foreign investors due to high taxes and regulations. Lego, the iconic toy maker, was specifically mentioned as a prime example of a successful family business in Denmark.
Unlike neighboring Norway, where the government faced criticism for increasing taxes on wealthy families and resulting in many billionaires leaving the country, Denmark intends to create a more favorable environment for family businesses to thrive. By reducing taxes and providing incentives for research and development, the Danish government hopes to ensure the continued success of family businesses within their borders.