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Local Norway
31-03-2025
- Business
- Local Norway
What are the tax rules when you rent out a holiday home in Norway?
Making the most of your holiday home in Norway means more than just visiting it regularly, it may also mean renting it out to try and generate a bit of extra income. This income can help offset some of the running costs. However, there are several tax rules you'll need to be aware of. For starters, whether you live in Norway or are considered a non-resident, you will be expected to pay some form of tax on the property - especially when it comes to rental income. READ ALSO: What taxes do foreign holiday homeowners in Norway pay? What are the tax rules for rental incomes? Firstly, if you are just thinking of renting out your property a few times a year, then it may fall under the rules for short-term lets. In Norway, rental income up to 10,000 kroner from short-term rentals is tax-free, provided each rental period is less than 30 days. Therefore, you could rent out your holiday home for up to 10,000 kroner per year without paying any tax. After this limit has been reached, 85 percent of income is taxable at a rate of 22 percent. Say if you made 15,000 kroner renting out your holiday home, 10,000 would be tax-free. After that, 4,250 kroner of the 5,000 kroner would be taxable. You would then pay an income tax of 22 percent of the figure of 4,250 kroner. Advertisement For the property to fall under the short-term rules, you'll need to meet several requirements. For starters, you will need to also use the property as a holiday home yourself. How often you'll need to visit the property yourself isn't clear, so your first port of call should be the Norwegian Tax Administration. Secondly, the home must have the characteristics of a holiday home, not a rental property. Theoretically, a home in a city centre surrounding residential properties wouldn't fall under the short-term rental rules. Should the property fail to meet these requirements, then it could fall under the tax rules for the renting out of holiday homes. Generally, the main thing you'll need to know is that this income is taxable from the first krone , typically at a rate of 22 percent – and that deductions are available. Finally, you should know that the property or even parts of it cannot be used as a permanent home by co-owners, leaseholders, or others. If it is, then it'll fall under the residential property rental rules . Advertisement Are there any ways to avoid being taxed twice? Those who are tax residents in another country will likely be put off by the potential prospect of being taxed twice, firstly by Norway and then by the country in which they live. The good news is that Norway has tax treaties with several countries to avoid double taxation. This means that when you are taxed on rental income in Norway, you can obtain tax credits that may exempt you from paying tax again in the country in which you live. However, for more detailed information, it is best to contact a tax advisor in the country where you live and a Norwegian expert .
Local Norway
21-03-2025
- Business
- Local Norway
Everything that changes in Norway in April 2025
ETA rules for travel between Norway and the UK From April 2nd, travellers will need an ETA to travel to the UK from Norway, unless they hold and will travel on a British or Irish passport. The ETA is a two-year visa waiver that must be applied for online before your trip, costing £10. It is important to use the official UK government website rather than unofficial third-party providers. READ ALSO: Do British-Norwegian dual nationals need an ETA to travel to the UK Tax return deadline April 30th is a date most people will already have etched into their calendars, the reason being that it's the tax return deadline. If you don't think you'll have time to hand in your tax return by this date, then you can apply for a postponed deadline. Tax returns in Norway come mostly filled out. However, it is up to residents to check that the information received is correct and add any missing information. Some information that isn't included is the commuter deduction for people who travel into work. Meanwhile, those with fixed-rate loans and mortgages may have incorrect deductions for interest paid. As the Norwegian Tax Administration explains on its website, tax returns not submitted by this year's deadline will be considered as having been submitted with the pre-completed information (sent to all taxpayers in Norway in March). Advertisement This means that you may be missing out on potential deductions, which could mean that the tax administration owes you money. It could also mean that you could end up owing the tax administration money as the information in the partially completed form wasn't correct. READ MORE: What happens if you don't file your Norwegian tax return on time? Wage talks head to the national mediator Negotiations on wages for the 'frontline industry' will head to the national mediator at the start of April, after initial talks broke down. If an agreement isn't reached, a general strike could be called from April 2nd. This year's talks are what's referred to as an 'interim settlement'. In short, this means only wage rises, and not general working conditions, are up for discussion. 'Frontline industry' wage talks act as a precursor to other wage negotiations. Unions are pushing for a real wage increase this year , while employer organisations want to ensure that a large chunk of the wage increase this year is negotiated on a business-by-business basis. Advertisement Dog leash rules All dogs will need to be kept on a lead from the start of April. The rules come into effect every year and will apply until August 20th. The rule is to protect both domestic and wild animals during the birthing, nesting and mating seasons. The most likely punishment for being caught breaking the leash law will be a reminder to keep your dog on a lead or a fine. Some parts of Norway may have tighter rules, such as dogs needing to be kept on leads all year round in certain areas. Therefore, it's always worth checking which rules apply to your specific area. Winter tyres will need changing As is the rule of thumb over Norway, winter tyres will need to be removed the first Monday after Easter Monday. We know that's not very helpful or easy to understand, as the rule is more of a brain teaser or riddle than a set date. This year, the key date is April 28th. There are no rules stopping you from using winter tyres past this point, but studded ones will be prohibited. Areas like Oslo may have additional fines or tolls for the use of studded tyres. Those in northern Norway will have until the start of May to change their tyres.
Local Norway
19-03-2025
- Business
- Local Norway
The questions you need to ask yourself before buying a Norwegian holiday home
More and more foreign buyers are snapping up Norwegian cabins , and there are plenty of choices given that there are around 480,000 holiday homes and leisure properties in Norway. These holiday homes aren't just for the wealthy either, and plenty of people find themselves able to afford a small place out in nature – although properties at the higher end of the market do fetch tens of millions of kroner. However, you need to ask yourself several questions to ensure that your dream doesn't become a nightmare. Will you be able to visit it regularly to make the most of it? If you have legal residence in Norway, how often you can visit your cabin depends on your schedule. However, those who don't have residence in Norway will need to be aware that they will be restricted to how often they are able to spend time at their holiday home. Most non-EEA residents will be restricted to the 90/180 day Schengen rules. This allows foreign nationals to stay in the Schengen zone for up to 90 days within any 180 days. Those caught overstaying face being expelled from Norway, difficulties entering the Schengen, and bans on entering Norway. EEA citizens are allowed to stay in Norway for up to three months . However, once they leave, they can return immediately and start a new three-month stay. Are you aware of the taxes and costs involved? Whether you live in Norway or are a non-resident, you will be expected to pay some taxes on your holiday home. Among the taxes you may be required to pay are property taxes, wealth tax, stamp duty and income tax on money made renting the property out. All of these taxes can add up and should be factored into the cost. The Local has put together a guide on the taxes that foreign holiday homeowners must pay, but for more in-depth advice, it'd be best to contact the Norwegian Tax Administration. Advertisement READ ALSO: What taxes do foreign holiday homeowners in Norway pay? Another thing to consider is energy bills. Older cabins will need a lot of energy to stay warm during Norway's notoriously cold winters, and bills have increased significantly in recent years. You also can't get around the bills by disconnecting the water and electricity whilst you aren't at the cabin either, as this could cause serious damage to the property. Have you read the small print? Property in rural parts of Norway is really cheap, especially outside of some of the most popular holiday home destinations. But knock-down prices normally have a lot to do with what's in the small print. Should a charming farmhouse catch your eye, you'll need to be aware that there are rules on the ownership of agricultural properties dating back more than 1,000 years. You'll need to live on the property full-time and use it for its intended purpose, ruling out just using it for weekends. Furthermore, non-agricultural properties may also come with rules that mean you must reside at the property a certain number of days per year, which non-residents will struggle with. Advertisement Finally, a lot of these rural properties will be fixer-uppers. The catch is that you are unlikely to see a return on the money you've invested in getting the property up to scratch. The issues with the home will be included in the condition report . Is it practically viable? Those with a cabin in rural Norway will need a car as public transport can't be relied on, and your property could be tens of kilometres from the nearest bus or train stop. Rentals can be expensive, and buying and running a car as a non-resident could be tricky. On the topic of transport, you'll need to feel comfortable driving in snowy conditions and will need to outfit your car appropriately to deal with the Norwegian winters. Once you arrive, you'll need to consider whether you'll be fit and mobile enough to dig out your driveway in the event of a snowstorm and maintain the property and the garden. Advertisement Homeowners with serious health conditions will need to consider whether they are comfortable being a few hours from the nearest hospital (although every local authority in Norway does something that sits somewhere between an out-of-hours doctor and an emergency room). Navigating Norwegian bureaucracy also isn't for the faint heart. Setting up utility agreements will be a hassle as a non-resident – but it isn't impossible.
Local Norway
27-02-2025
- Business
- Local Norway
What taxes do foreign holiday homeowners in Norway pay?
Many dream of a cabin out in nature where they can unwind and focus on the things that matter to them, whether that's being with friends or family or enjoying the great outdoors. Cabins and holiday homes have long been popular with Norwegians. However, a growing number of foreign buyers are falling in love with the dream of a holiday home in Norway. Tone Cecilie Krange, from the holiday cabin division at DNB Eiendom, has told The Local that while it has long been typical for Danes and Swedes to purchase places in Norway, a growing number of foreigners from other European countries were purchasing holiday homes in the Nordic country. So, with a holiday home already representing a fairly substantial outlay – what additional costs should foreign holiday homeowners expect to pay? Whether you live in Norway already and fancy a place in the country or are a non-resident, you will be expected to pay some taxes on your leisure property. 'Wealth in the form of real property in Norway is subject to tax, regardless of whether you reside in Norway or abroad. This also includes any income the property, such as rental income and gain when selling the property,' Cecilie Weydahl Berg, an acting department head at the Norwegian Tax Administration, told The Local. Property tax Local authorities in Norway can levy a property tax on both primary residences and holiday homes. Around 90 percent of local authorities in Norway have chosen to collect property tax. The tax is calculated on your property's estimated value, and there are a couple of ways this value can be determined. Once the property value has been determined, the taxable value is calculated. The taxable value is the percentage of the property's value used to determine how much property tax should be paid. The Norwegian Tax Administration has an online tool where you can . Furthermore, local authorities may have a reduction or deduction on residential properties to ensure the tax isn't too high. Sometimes, if the property is below a specific value, no tax is owed. How much you will pay will depend on how the local authority where the property is located calculates and collects the tax. The average annual property tax was 3,713 kroner in 2023, according to figures from the national data agency Statistics Norway. Wealth tax Wealth tax is levied on someone's net wealth, and property counts towards this figure for tax purposes. Individuals whose net wealth is more than 1,760,000 kroner (with that limit being doubled for spouses, registered partners or spouse-equivalent cohabiting partners who are assessed jointly on their joint wealth). The wealth tax rate is between 1 and 1.1 percent of your net wealth. The taxable value of a holiday home is 30 percent of its market value or the cost price for newbuilds. Therefore, if you buy a holiday home for 10,000,000 kroner, only 3,000,000 kroner will be considered taxable. The Norwegian Tax Administration told The Local that those with a limited tax liability in Norway, such as non-residents, can claim a deduction for property-related debt and that this would reduce the basis for wealth tax. Gains and income Financial gains made on holiday homes can be taxed by the Norwegian Tax Administration. Gains on property sales are taxed at 22 percent. However, gains on holiday homes are not taxable if certain conditions are met. One example is if the property was used as a holiday home in five out of the last eight years before it was sold or if the property's sale was agreed upon more than five years after it was purchased and more than five years after it was first used or constructed according to the certificate of completion. If you plan on renting it out, then the income from this could also be considered taxable. The tax administration has an overview of when rental income is taxed on its website. Stamp duty Stamp duty, the tax you pay to the land registry when you buy or take over a property, is referred to as dokumentantavgift in Norway. A rate of 2.5 percent of the property's value will need to pay upon the registration of the deed or declaration of title that transfers ownership to you. This applies to holiday homes, as well as regular homes that don't belong to a housing association.
Local Norway
13-02-2025
- General
- Local Norway
Six names you can't give your baby in Norway
When a baby is born, the parents have six months to register the child's name on the website of the Norwegian Tax Administration. Standard names (like "Olof Dahl", "Siri Nilsen", but also, say, "Peter Jones", or "Mohammed Saifuddin") normally get registered automatically. But anything unusual gets vetted by a case worker to make sure the name complies with Norway's 2003 Naming Law, which can take up to three weeks. Here are some names that absolutely wouldn't pass muster: Fitte. The Norwegian slang word for a woman's vagina, meaning roughly "pussy", is absolutely certain to get rejected as a first name. But that doesn't stop people trying. Ivar Utne, a name researcher, told the Nettavisen newspaper that "every conceivable name for male and female genitalia has been applied for.' The general rule for first names is that they must not cause "significant inconvenience" to the person given them. This is up to the discretion of the case officer, but words deemed "offensive" will not get approved. X Æ A-12. This was the name Elon Musk and the Canadian musician Grimes famously tried to give a son born in 2018. It would certainly be rejected in Norway as all submissions must have the "character of a name". The proposed names "B" and "2" have both been rejected in the past by the Norwegian tax agency for this reason. Prinsesse. Proposed names that are also titles are generally rejected, so "Prinsesse" or "Kong" would be out. Prince and Princess are, however, quite normal names in certain African countries, so it might be possible for some foreigners to overturn a rejection if they receive one. Diaree. There is a famous (perhaps apocryphal) case of a foreign couple who wanted to name their child "Diaree", which can apparently mean "gift of God". This was an accepted name in their home country, but The Norwegian Tax Administration then got back to them to inform them that it means "diarrhea" in Norwegian. "It may be that the name has a negative meaning in Norway but is a completely normal name abroad," Roar Sellevoll, Director of the Population Register, told The Local. "In such cases, we try to inform the parents so they can reconsider, or the request is rejected." Pepsi. Names of well-known trademarks or companies are also generally banned as first names, although if the parents can show it is a common name in their country, like "Nike" for the Yoruba people of Nigeria, for instance, the agency might allow it. Olsen. The naming law does not allow the use of a common surname as a first name (or, indeed, a common first name as a surname). The exception is for names are already commonly used as both, like, for instance, the French surname Richard, the English surname Christian, or the name Mohammed.
