Debt and interest on debt abroad

When you're a tax resident of Norway, you'll be entitled to a deduction for debt you have abroad.

If you have limited tax liability in Norway, you'll only be able to claim a deduction for debt that is linked to real property in Norway or commercial activity that is taxable in Norway.

Are you a tax resident of Norway? Do you have limited tax liability in Norway? These factors will affect the amount of tax you have to pay in Norway.

When you're a tax resident of Norway for tax purposes, you'll be entitled to a deduction for interest on debt you have abroad. The deduction will be limited if:

  • you carry out or participate in activity abroad, and income from this activity isn't liable for tax in Norway under a tax treaty between Norway and the country in which the activity takes place
  • you have real property abroad, and income from your property is not liable for tax in Norway under a tax treaty between Norway and the country in which the property is situated. Read more about property abroad

If you have claimed a deduction for interest on debt in the country in which the property is situated, you cannot claim a deduction for interest on debt in Norway at the same time.

If you're not a tax resident of Norway, you'll generally only be able to claim a deduction for interest on debt that is linked to real property in Norway or commercial activity that is taxable in Norway. If you reside in another EEA state, you can still claim a deduction for interest on debt if all or almost all (90 percent) of your total income is liable for tax in Norway. Read more about deductions

However, the deduction will be limited if you have income from real property or activity abroad which isn't liable for tax in Norway under a tax treaty. The deduction won't be limited if you own a residential property or holiday home in another EEA State, and the tax treaty between Norway and the country in which the property is situated stipulates that the income isn't taxable in Norway. 

If you've claimed a deduction for interest on debt in the country in which the property is situated, you won't be able to claim a deduction for interest on debt in Norway at the same time.

Interest on debt abroad

You cannot claim a deduction for interest on debt if you are already claiming the 10 percent standard deduction. Read more about the rules for the standard deduction.

You must enter the deduction for interest on debt under item 3.3.2 of your tax return.

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