Guide to Property Taxes in Norway

Non-resident individuals are generally subject to Norwegian tax on specified Norwegian-source income, including income and taxable gains arising from real estate situated in Norway.

Spouses are generally taxed as separate individuals, although special allocation rules can apply to certain income and deductions. The former description of non-residents as “class 0 taxpayers” should no longer be used.

Income Tax

Norway applies a 22% tax rate to ordinary income.

Ordinary income broadly includes taxable capital and rental income after allowable deductions. Norway also imposes progressive bracket tax on certain categories of personal income, particularly employment and business income, but ordinary passive rental income is generally subject to the 22% ordinary-income tax.

Rental Income Tax

Taxable rental profit from Norwegian real estate is generally subject to income tax at 22%.

The tax is calculated on net rental income, meaning qualifying expenses incurred in generating the rental income can generally be deducted.

Deductible expenses can include qualifying property-management costs, insurance, municipal charges, maintenance and repairs, and other costs directly associated with earning taxable rent. The deductibility of financing costs and other expenses depends on the applicable Norwegian rules and the taxpayer's circumstances.

For comparison purposes, annual gross rental income of €18,000, €72,000 and €144,000 is assumed to incur deductible expenses equal to 30% of gross rent, leaving net taxable rental income of €12,600, €50,400 and €100,800, respectively.

Applying Norway's 22% tax rate on ordinary rental profit results in estimated annual income tax of €2,772, €11,088 and €22,176, respectively. This represents an effective income-tax burden of 15.4% of gross rental income at each income level.

If the scale and nature of the rental activities are sufficient to constitute a business, different rules can apply and the overall tax burden can be substantially higher.

Capital Gains Tax

Taxable gains realized by individuals from the disposal of Norwegian real estate are generally treated as ordinary income and taxed at 22%.

The taxable gain is broadly calculated as the property's disposal proceeds less its qualifying acquisition cost and eligible acquisition, improvement and disposal expenses.

An exemption can apply to a qualifying principal residence where the taxpayer has:

• Owned the property for more than one year; and

• Used it as their own home for at least one of the two years preceding the sale.

A qualifying holiday property can generally be sold tax-free where the taxpayer has:

• Owned it for more than five years; and

• Used it as their own holiday property for at least five of the eight years preceding the sale.

Where a gain is exempt, a corresponding loss is generally not deductible.

Corporate Taxation

Companies are generally subject to Norwegian Corporate Income Tax at 22%.

Rental income from real estate is included in taxable corporate income, while qualifying business expenses incurred in generating the income are generally deductible.

Capital gains realized by a company from the disposal of Norwegian real estate are generally included in ordinary taxable corporate income and subject to the 22% corporate income tax rate.

Wealth Tax

Individuals with taxable net wealth above the applicable threshold can be subject to Norwegian net wealth tax at both state and municipal level.

For 2026, the combined rates are generally:

• 1.0% on taxable net wealth above NOK 1.9 million; and

• 1.1% on taxable net wealth above NOK 21.5 million.

Importantly, these percentages apply to the taxpayer's net taxable wealth, rather than simply being a property tax charged directly against the market value of a particular property.

For 2026, a secondary dwelling, including an ordinary investment property, is generally included at 100% of its calculated housing value for wealth-tax purposes. Primary residences receive substantially more favorable valuation treatment.

Non-residents with Norwegian real estate can be subject to Norwegian wealth tax on their taxable Norwegian property interests, subject to applicable domestic rules and tax-treaty provisions.

Buying and Selling Costs/Taxes

Property Holding Tax

Municipal Property Tax (Eiendomsskatt)

Norwegian municipalities may choose to impose an annual municipal property tax (eiendomsskatt) on real estate situated within their jurisdiction. Consequently, the tax does not apply uniformly throughout Norway.

For residential and holiday properties, the municipal property-tax rate may generally range from 0.1% to a maximum of 0.4% of the applicable property-tax base.

The taxable value should not be assumed to equal a fixed 20%–50% of market value. Municipalities can determine the property-tax base under the applicable valuation rules, and some municipalities use values derived from the Norwegian Tax Administration's housing valuation system.

Where the Tax Administration's calculated housing value is used for municipal property-tax purposes, a statutory reduction is applied when determining the property-tax base.

Municipalities can also establish exemptions and basic deductions that reduce the effective annual tax burden on residential property.

Property tax attributable to a taxable rental or business activity may generally be deductible when calculating taxable income, subject to the ordinary deduction rules.