You must do the following:
Delete the holiday home from your tax return
As you have sold the property, you must delete it from your tax return. You do this by setting the capital value of the property to 0 in item 4.6.1.
Register the profit from the sale in your tax return if it is taxable in Norway
The profit from the sale of a holiday home will normally be taxable in Norway, even if it is situated abroad. However, the profit may be tax-free in some cases.
If the profit is taxable in Norway, you must:
- Declare the profit from the sale under item 3.1.11 in the tax return.
- Tick "Yes" under item 1.5.6 for income abroad.
The profit must be declared in Norwegian kroner. If you have to convert the amount from a foreign currency, you must use the Norges Bank's bid rate as of the date of payment of the profit.
Look after your documentation
You do not need to attach documentation of the profit calculation to the tax return, but you must be able to present it to us it if we ask to see it later. You must be able to present the following documentation:
- Purchase contract
- Sales contract
- Any documentation for improvements to the holiday home
- Any documentation of other expenses linked to the holiday home (e.g. agent costs)
The Norwegian Tax Administration may require documentation in a non-Nordic language to be translated into Norwegian or English by an officially authorised translator.
Amend tax deduction card?
When you sell a holiday home, it can affect the basis for your tax deduction card (capital, debt and interest on debt). If you did not inform us about these changes when you applied for a tax deduction card, you should consider amending your tax deduction card.
Have you also rented out the property?