Guide to Property Taxes in Norway
Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 22% | 22% | 22% |
Nonresidents 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 couples are generally taxed jointly.
Income Tax
Nonresidents in Norway are considered class 0 taxpayers and taxed at a rate of 22%. Expenses incurred in the generation of income are deductible.
Rental Income
Rental income earned by a nonresident is taxed at the general rate, which is 22%. Expenses incurred in acquiring rental income are deductible.
Capital Gains Tax
Gains from the sale of real estate property are taxed as ordinary income at 22%. 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.
Corporate Taxation
Income Tax
Income and capital gains earned by companies in Norway are taxed at a flat rate of 22%. Expenses incurred in generating income are deductible. Taxable capital gains are generally computed as selling price less acquisition cost and depreciation.
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.
State Net Wealth Tax 2024
| Tax Base, NOK | Tax Rate |
| Up to 1,700,000 (€148,397) | 0% |
| 1,700,000 – 20,000,000 (€1,745,843) | 0.30% |
| Over 20,000,000 (€1,745,843) | 0.40% |
| Source: Global Property Guide, PWC | |
Municipal Net Wealth Tax 2024
| Tax Base, NOK | Tax Rate |
| Up to 1,700,000 (€148,397) | 0% |
| Over 1,700,000 (€148,397) | 0.70% |
| Source: Global Property Guide, PWC | |
Buying and Selling Costs/Taxes
| Transaction Costs | Rate | Who Pays |
| Property Transfer Tax | 2.50% | buyer |
| Notary Fees | 0.10% | buyer |
| Legal Fees | 1.00% | buyer |
| Real Estate Agent Fee | 1.00% - 3.00% | seller |
| Costs Paid by Buyer | 3.60% | |
| Costs Paid by Seller | 1.00% - 3.00% | |
| Total Roundtrip Cost | 4.60% - 6.60% | |
| Source: Global Property Guide, PWC, Deloitte | ||
Property Holding Tax
Municipalities in Norway are entitled to impose a tax on real estate property located in their jurisdiction. The tax is levied at the assessed value of the property, which is about 20% to 50% of the property’s market value. Property tax rates range from 0.01% to 1.50%, depending on the municipality.
The real estate tax is deductible for income tax purposes if the property is used for business.