Tax value of residential properties

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The tax value of your residential property will be pre-completed in your tax return based on the housing information you have reported to the Tax Administration. If the tax value is not stated in your tax return, you can state the housing information directly in the tax return which you will receive in March/April 2016.

At other times of the year, you can register housing information here. You do not need to register housing information every year. 

If you need to document the registered tax assessment value of a property you can order certificate of tax assessment value of property. It shows total assessed value for the property. 

What information does the Tax Administration need?

All home owners must report information concerning the following:

  • Living area (primary rooms or gross living area) 
  • Year of construction 
  • Type of housing

This information will form the basis for the tax assessment. Information concerning area and year of construction can for example be found in sales statements and valuation documents.

If you own the dwelling together with one or more other people and only the area has to be declared, the information from one of the owners will be sufficient.

How is the tax value of primary and secondary homes calculated?

The tax value will be determined based on a rate per square metre which is calculated by Statistics Norway (SSB). The rate per square metre is intended to indicate an estimated market value per square metre and is based on statistical information concerning houses that have been sold (type of housing, area, geographic location and age).

Consideration is also given to whether the dwelling is situated in a densely or sparsely populated area.

Based on SSB's square metre rates, the Tax Administration determines square metre rates annually.

When determining the value of the dwelling, a distingtion will be made between the dwelling where the owner lives (primary dwelling) and other dwellings that are not defined as holiday homes or industry property (secondary dwelling).

For primary dwellings the house value will make up 25 percent of the estimated square metre rate multiplied with the area. For secondary dwellings, the house value will make up 80 percent (2016) of the estimated square metre rate multiplied with the area of the dwelling. For the 2017 income year, the tax value is 90 percent of the calculated square metre rate multiplied by area.

Note that you can demand a deduction in house value if you can document that the house value is higher than the given rates.

What happens if I do not provide the information?

If the information is not provided by the deadline for submitting the tax return, the Tax Administration may determine the tax value on a discretionary basis and also imposing surtax.

Which dwellings must be valued in accordance with the rules concerning the value of housing?

The rules apply to all residential properties with the exception of farmhouses, holiday homes and dwellings abroad and on Svalbard. The tax value will only have consequences for your wealth tax, not your income tax.

How is the tax value of holiday homes calculated?

When the property is initially valued, the tax value of holiday homes (not secondary homes) is set to a maximum of 30 percent of the market value, or to 30 percent of the construction costs, including the land, for a newly constructed home.

For subsequent years, the tax value is the same, but with a possible increase. In the tax return for 2016, the tax value of holiday homes in Norway is not increasing.

The tax value of holiday homes substantially above the level of fares for comparable holiday homes elsewhere in the municipality, shall be reduced if the taxpayer so requires.

If you bought the holiday home during the year, you use the tax value which the previous owner used for the last tax assessment, and add any increase determined for the year. If the tax value used by the previous owner appears to be obviously wrong, you must set the tax value to a maximum of 30 percent of the market value, unless you can prove with a lower fare level for comparable properies elsewhere in the municipality.

How is the tax value of homes and holiday homes abroad calculated?

The tax value of real property abroad is determined according to Norwegian rules.

The capital value of housing and holiday properties abroad is set according to the rules that apply to holiday properties in Norway, see above.

If the property has not previously received a tax value according to Norwegian rules, the tax value is set to a maximum of 30 percent of the market value abroad. Any capital value determined by a foreign tax administration shall not be used.

Read more about property abroad and tax value here.

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