Global Property Guide

Financial Information for Residential Property Buyers


Tax Example: Rent

November 02, 2017

Non-resident couple's joint monthly rental income1 €1,500 €6,000 €12,000
Annual Rental Income 18,000 72,000 144,000
Less Costs3 (2,400)` (12,000) (21,000)
= Taxable Income 15,600 60,000 123,000
Income Tax Rates3
Flat Rate 24% 4,368 16,800 34,440
Income Tax Due €4,368 €16,800 €34,440
Capital Tax Rates4
Up to NOK400,000 0 - - -
NOK400,000 - NOK1,080,000 0.90% - 612 612
Over NOK1,080,000 1.10% - - 165
= Capital Tax Due   - 612 777
Annual Income Tax Due €3,744 €15,012 €30,297
Tax Due as % of Gross Income 20.80% 20.85% 21.04%
Source:
GPG


Notes



1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 EUR = 10.00 NOK

  • New properties = €24 per sq. m.
  • Buildings 15 years or more = €30 per sq. m.
  • Older buildings = €36 - €40 per sq. m.

3 Estimated values only. The calculations are based on the computation that costs are around €30 per sq. m. On average, the costs vary depening on the property:

  • ( New properties = €24 per sq. m.
  • Buildings 15 years or more = €30 per sq. m.
  • Older buildings = €36 - €40 per sq. m.

4 Individual taxpayers earning rental income from less than five rental units / propertis (flats, houss, etc.) are taxed at 24%. Individual taxpayers owning five rental units or more are considered to be running a business and additional tax will be levied on the income at progressive rates, where the maimum rate is 22.7%. Consequently, the total maximum applicable rate in this instance is 46.7%.

5 Capital tax is levied at progressive rates on the assessment value of the property. For flats and buildings used for housing purposes, the maximum assessment value will be set at 30% of the market value of the property. For flats and buildings used for housing purposes, the maximum assessment value will be set at 30% of the market value of the property. In these calculations, the values are set a bit lowr than the maximum rate, which is usually the case with assessment values. The assessed values are as follows:

  • €100,000
  • €500,000
  • 1,000,000

The tax bands in the table are for married taxpayers filing jointly. A different set of tax bands apply to individual taxpayers.

CAPITAL TAX FOR MARRIED TAXPAYERS FILLING JOINTLY

Assesed Value, NOK (€) Tax Rate
Up to 400,000 (€ 40,000 ) 0.00%
400,000 - 1,080,000 (€ 108,000 ) 0.90%
Over 1,080,000 (€ 108,000 ) 1.10%
Source: Global Property Guide

CAPITAL TAX FOR INDIVIDUAL TAXPAYERS

Assesed Value, NOK (€) Tax Rate
Up to 200,000 (€ 20,000 ) 0.00%
400,000 - 540,000 (€ 54,000 ) 0.90%
Over 540,000 (€ 54,000 ) 1.10%
Source: Global Property Guide

Comments

Be the first to comment on this article!

Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.