Property abroad
When you are a tax resident in Norway, you will normally be liable to pay tax in Norway on gains made on the sale of real property and rental income from property abroad. You will be entitled to deductions for losses made on the sale of property and any deficits linked to the letting of property. You will also be liable for tax on the tax value and be entitled to deductions for debt relating to the property.
If you have a limited tax liability in Norway, you won't be liable for tax on property abroad, nor will you be entitled to deductions for losses or deficits.
Are you a tax resident in Norway? Do you have limited tax liability in Norway? These factors will affect the amount of tax you must pay in Norway. Read more about tax residence and limited tax liability
The tax value of a property is set to a maximum of 30 percent of the market value. The Norwegian Tax Administration calculates tax values in accordance with Norwegian rules. This amount is known as the tax value of real property in the tax return. You cannot use a tax value which has been assessed abroad. In order for the Norwegian Tax Administration to calculate a tax value, you must state the country in which the property is situated, the purchase amount or similar.
See more information about Tax value of residential/holiday property abroad
It may follow from a tax treaty with the country in which the property is situated that the tax value of the property is not liable for tax in Norway. Read more about this under “Exceptions from tax liability in Norway” further down.
You must enter the tax value of the real property in your tax return.
Rental income from real property abroad will generally be liable for tax in Norway. If rental income is liable for tax, you will also be entitled to deductions for any deficits.
It may follow from a tax treaty with the country in which the property is situated that the income is not liable for tax in Norway. Read more about this under “Exceptions from tax liability in Norway” further down.
If you have taxable rental income from real property abroad, you must enter this in your tax return. Special rules apply to forestry and agricultural properties.
In principle, any gain made on the sale of real property abroad will be liable for tax in Norway. You'll also be entitled to a deduction for any loss made on the sale.
Gains made on the sale of real property will not be liable for tax in Norway in the following cases:
- a) You have owned the property for more than 12 months and during your period of ownership you have used it as your own home for at least 12 of the 24 months leading up to the sale.
- b) You have used the property as your own holiday home for at least five of the past eight years and it was sold more than five years after it was purchased.
- c) It follows from the tax treaty with the country in which the property is situated that the gain is not liable for tax in Norway.
When a gain is not liable for tax in accordance with the above, you will also not be entitled to a deduction for any loss made on the sale of the property.
When a gain made on the sale of real property is liable for tax in Norway, the gain or loss must be calculated in accordance with Norwegian rules. You must provide information on the property and how you calculated the gain or loss.
If you have paid tax abroad on the same wealth/income that is liable for tax in Norway, you can claim a deduction from your Norwegian tax for this amount. You must enter this in your tax return, and document that you have paid tax abroad.
If your property is situated in a country with which Norway has a tax treaty, it may be that the wealth and income from the property abroad is not liable for tax in Norway. It must follow from the tax treaty that double taxation is to be avoided through what is known as the “distribution method".
As your wealth and income will not be taxed in Norway, you will also not be entitled to a full deduction for all your debt and interest on debt. The deduction will be calculated as follows:
total debt or interest on debt x taxable wealth in Norway (excluding property abroad)
total gross wealth in Norway and abroad
To enable us to calculate the deduction for debt and interest on debt, you must state the country in which the property is situated, the purchase amount or similar.
The situation applying to each country is presented in the list. If you cannot find the country concerned on the list, you will be taxed on the wealth and income from the property abroad and you will receive a full deduction for all debt and interest on debt.
If you live with your family in another country and commute to Norway for work, it's possible you may not be liable for tax on income from abroad.
You will then be a tax resident in Norway under Norwegian law, but you may be considered to be resident in the other country under a tax treaty that applies between Norway and your country of residence. The tax treaty concerned may then limit Norway’s right to tax your income from abroad.
You must ask to be considered as resident in the other treaty country. You must then present confirmation of your residence from the tax authorities in the other country.