INDIVIDUAL TAXATION

Non-residents are taxed on their income from Norwegian sources, particularly income from real estate property, income from participating in or conducting a business carried out or managed in Norway, and income in any form received as a director or member of a board of directors or the like of a Norwegian company or entity. Married persons are taxed jointly.

INCOME TAX

Non-residents in Norway are considered class 0 taxpayers and taxed at a rate of 28%. Expenses incurred in the generation of income are deductible. The 28% rate is the total rate of the liability, which is composed of a 15.8% county and municipal income tax and a 12.2% state income tax.

Rental Income

Rental income earned by a non-resident is taxed at the general rate, which is at 28%. Expenses incurred in acquiring rental income are deductible.

Capital Gains

Gains from the sale of real estate property are taxed as ordinary income at 28%. Taxable capital gains are computed as the difference between the selling price and acquisition costs, less related expenses.

Holiday houses are also exempt from capital gains tax if the taxpayer has owned them for more than 5 years and has used the property for at least 5 years in the 8-year period prior to selling the property.

PROPERTY TAXATION

Wealth Tax

A wealth tax is imposed on real estate property, at the national and municipal level. The tax is levied on the estimated market value of the property. For the municipal wealth tax, the rate is 0.7% of the estimated market value of the property over NOK 200,000 (€25,376). The national wealth tax, however, is imposed on a progressive scale. The taxpayer’s debts may be deducted before the tax is levied.

Property Tax

Municipalities in Norway are entitled to impose a tax on real estate property located in their jurisdiction. The tax is levied on the gross assessment value of the property at rates ranging from 0.2% up to 0.7%.

CORPORATE TAXATION

INCOME TAX

Corporate income in Norway is taxed at a flat rate of 28%. Expenses incurred in generating income are deductible. For companies that are resident in Svalbard, income is taxed at 10%.

Capital Gains

Corporate capital gains are taxed as ordinary income at a flat rate of 28%. Capital gains are generally computed as selling price less acquisition cost and depreciation.