You must do the following:
Declare the holiday home in your tax return
- Find out how to calculate the capital value of a holiday home. The capital value of real property abroad is determined in accordance with Norwegian rules..
For properties that have not previously had a capital value determined under Norwegian rules, the capital value is set to a maximum of 30 percent of the market value abroad. Any capital value stipulated by foreign tax authorities must not be used.
- Register information on the holiday home under item 4.6.1 of the tax return. You will find the information that you must register under "Real property abroad".
It is generally possible to claim a deduction for Norwegian and foreign debt and interest on debt in Norway.
Separate rules apply if you own a holiday home with time-share.
Find out whether you are paying wealth tax to two countries
Wealth tax in Norway: You must pay wealth tax in Norway if your net wealth exceeds a certain value. The capital value of a holiday home abroad must be included when determining your net wealth.
Different rates for wealth tax apply depending on your tax class and net wealth.
Wealth tax abroad: Most countries, such as Sweden, Denmark and Italy, do not have a wealth tax. Spain and France have a wealth tax, but they use different threshold amounts compared with Norway.
If you have paid wealth tax to another country in addition to Norway, you may be entitled to a deduction from your Norwegian wealth tax.
I pay wealth tax to two countries and wish to claim a deduction
If you believe you are entitled to a deduction from your wealth tax in Norway, you must:
- Tick "Yes" under item 1.5.6 for credit deduction in the tax return.
- Submit form RF-1147E Deduction for tax paid abroad by a person – credit deduction together with your tax return.
- Document tax paid abroad. The documentation must originate from the tax authorities concerned, and show:
- The income year that the tax concerns
- That the tax has been assessed with final effect, not just calculated provisionally
- That the tax has actually been paid
- That it is wealth tax (and not, for example, tax on income) that you have paid
The Norwegian Tax Administration may require documentation in a non-Nordic language to be translated into Norwegian or English by an officially authorised translator.
You must upload the documentation as an attachment to the tax return.
You cannot claim a deduction from your Norwegian tax for foreign property tax
Examples of foreign taxes which do not give entitlement to a deduction
(The list is not exhaustive)
- Kommunal fastighetsavgift (Sweden)
- Ejendomsværdiskat (Denmark)
- Council Tax (United Kingdom)
- Taxe Foncière (France)
- Taxe d’habitation (France)
- Taxe Professionelle (France)
- Impuesto Bienes Inmuebles (IBI) (Spain)
- Renta de no Residentes (Spain)
- Internal tax paid to the EU under the EU’s Protocol on the Privileges and Immunities of the European Communities, Article 12 (formerly Article 13) by an employee of the European Commission.
Amend tax deduction card?
When you purchase a holiday home, it can affect the basis for your tax deduction card, e.g. a change in capital, debt and interest on debt. If you have not previously updated your tax deduction card with these changes, you should consider amending your tax deduction card.
Have you also rented out the property?