What about buildings with both residential and commercial sections?

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Residential property - special rules on the capital valuation of multi-unit buildings in Norway 

This article explains how you calculate the tax value for a multi-unit building. You enter this tax value as a residential property asset in your tax return or business return.

Which residential properties can be valued in accordance with the regulations for multi-unit buildings?

Multi-unit buildings are not valued in the same way as other residential properties. A multi-unit building is a residential property with 5 or more housing units that are not sub-divided into sections.

If some of the units have been sub-divided into sections, then the value of these should not be included in the basis for valuing the multi-unit building. Each section is treated as a separate residential property. A tax value should be determined for each unit which has been sub-divided into a section.

What about buildings with both residential and commercial sections?

It must be determined whether buildings with areas that are used for both housing and commercial purposes should be valued as a residential property or commercial property. If the area used for residential purposes is more than half of the building’s usable floor space, then the property is to be valued using the rules for residential properties.

If the commercial area is largest, then the property is to be valued as a commercial property and form RF­1098 Formue av næringseiendom (Commercial property assets) must be submitted.

How are multi-unit buildings valued?

The tax value of this type of residential property is calculated by determining the value of each housing unit as if it was a separate residential property. The tax value of the residential property is therefore the total of the calculated values of all the housing units included. If the owner uses one of the housing units as the owner’s permanent residence, then the square metre rate for primary dwellings is used. The square metre rate for secondary dwellings is used for the other housing units.

Commercial sections of a multi-unit building are not included in the basis used for valuing the building. A separate tax value for commercial sections is not set unless the commercial section has been separated into a separate section (land register unit).

How to calculate the tax value of a multi-unit building?

You can use the ‘boligkalkulatoren’ to calculate the value of each housing unit.  Tick the box for primary dwelling for the housing unit which is used by the owner as permanent residence at the end of the income year. Other housing units are specified as being secondary dwellings in the ‘boligkalkulatoren’. Add together the values of housing units to find the tax value for the residential property.

How do I report?

Residential information, including the tax value, is to be reported either in: 

Fill in these asset items as follows:

  • Specify apartments in the field for ‘Type of housing’  
  • Specify the multi-unit building’s total area in the field for ‘P­ROOM/living area’ 
  • Specify the year the building was completed in the field for ‘Construction year’ 
  • Specify the owner proportion as a percent at the end of the income year in the field for ‘Owner proportion’  
  • Specify the total of the calculated values for all the housing units in the multi-unit building in the field for ‘Tax value’

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