Income and wealth abroad

You must declare all income and wealth you have abroad in your Norwegian tax return. This applies even if you've paid tax abroad or in the event the income/wealth is exempt from tax in the source country.

You can avoid double taxation by declaring a deduction in or reduction of the Norwegian tax. 

Does this apply to me?

Information in this article applies to you if you've had income or wealth abroad in the last income year.

If your income or wealth is from 2017, 2018 or 2019, you can change your tax return for that income year.

If your income or wealth is from 2016 or earlier, you can avoid additional tax by applying for voluntary correction (so-called tax amnesty).

How to report this on your tax return

You must declare your income and wealth abroad in the last income year by changing your tax return.

You must always enter all amounts in Norwegian kroner. In the event you've received the amounts in a foreign currency, you must convert them into Norwegian kroner.

In the points below, you can find out what you need to do for various types of income and wealth abroad.

What do you have abroad?

If you own, have sold, inherited, taken over or rented out a holiday home abroad, our guide to holiday homes abroad will show you what to do.

This is what you must do:

Enter the amounts in your tax return

You must report bank balances pr. 31 December and interest income for the whole year. You can ask the bank to send you a separate statement containing this information.

I've paid tax abroad and want to claim a deduction in my Norwegian tax

Your right to a deduction for tax paid abroad depends upon the tax treaty between Norway and the country in question.

If you think you have the right to a deduction in Norway, you must enter this in your tax return. 

Documentation

You don't have to send documentation for this when you submit the tax return, but you must be able to submit documentation upon our request.

If you think that you have the right to a tax deduction in Norway, you must be able to document that you've paid tax abroad.

Documentation must be from the tax authorities in the source country and must show:

  • which income year the tax applies to
  • that the tax is a final assessment, not a preliminary assessment
  • that the tax is paid
  • which type of tax you've paid (wealth or income tax)

The tax office may require that documentation in a language other than a Nordic language be translated into Norwegian or English by a publically authorized translator.

Enter your salary in your tax return

State the amount you’ve earned while working abroad in your tax return.

Special rules apply to cross-border commuters and certain other groups of employees, e.g. seafarers, airline personnel, offshore workers and public sector employees.

I've paid tax abroad and want to claim a deduction from Norwegian tax

Whether you’re entitled to a deduction for tax paid abroad, depends on the tax treaty between Norway and the country in question.

There are three ways to avoid double taxation:

  1. The credit methodmeans you’ll receive a deduction from your Norwegian tax for the tax that you've paid abroad. The deduction is limited to the Norwegian tax on the same income. 
  2. Alternative allocation(the allocation method with progression reservations) means that your Norwegian tax is proportionally reduced. This ensures that no Norwegian tax will be payable on the salary income that is taxed abroad. The alternative allocation must also be used when you claim a tax reduction according to the one-year rule.
  3. The allocation method (exemption method) means that salary income earned abroad is exempt for taxation in Norway. This method is only used in the tax treaty between Norway and Malaysia. We recommend that you clarify the national insurance contribution rate for your voluntary membership directly with NAV if you want to claim this exemption.

Documentation requirements

You do not have to attach any documents or other proof to your tax return, but you must be able to provide them if we ask you to.

If you believe you're entitled to a deduction from your tax in Norway, you must be able to provide evidence of the tax you’ve paid abroad.

This evidence must originate from the tax authorities concerned, and it must contain the following information:

  • The relevant income year
  • That the tax has been finally settled, not just provisionally calculated
  • That the tax has actually been paid
  • The type of tax you’ve paid (tax on wealth or income)

Do you claim a reduction of income tax according to the one-year rule? You must be able to prove that you’ve had a continuous work-related stay abroad lasting for at least 12 months. Nor can you have stayed for more than an average of 6 days per month in Norway during the entire work-related stay.

The Norwegian Tax Administration may require documents in a non-Nordic language to be translated into Norwegian or English by an officially authorised translator.

 

This is what you must do:

  1. Enter the taxable value of the shares and securities in the tax return

Use the value pr. 31 December of the income year.

  1. Enter the dividend from shares and mutual funds (share component)

If you've received dividends from shares or mutual funds, enter the combined total dividend in your tax return.

If you claim the risk-free return, you must also enter this in your tax return. 

  1. Enter gains or losses from the sale of shares and other securities

It's not common for the bank/funds manager abroad to provide a statement of gains/losses from the sale of shares. You must therefore calculate this yourself according to the Norwegian rules. You can claim a risk-free return in the calculation.

How to calculate a gain/loss:

  1. Find the value of the share/security at the time you purchased it (input value). If you have multiple shares/securities of the same type, you should use the "first in, first out" principle.
  2. Convert the input value into Norwegian kroner. Use the currency rate at the time of purchase.
  3. Find the sale value of the share/security and convert the value into Norwegian kroner. Use the currency rate at the time of sale.
  4. Convert any costs in a foreign currency into Norwegian kroner. Use the currency rate at the time you paid the costs.
  5. Gain or loss = Sales value in Norwegian kroner – input value in Norwegian kroner – costs in Norwegian kroner – any risk-free return.

You enter the sales gain or loss in your tax return. 

  1. Enter interest income from funds, securities etc.

If you've received interest distributions from mutual funds, securities or other interest-bearing instruments, enter this in your tax return. 

I've paid tax abroad and will claim a deduction in Norwegian tax

Your right to a deduction for tax paid abroad depends upon the tax treaty between Norway and the source country.

If you're claiming a credit deduction, you must enter this in your tax return. 

Documentation

You do not have to send documentation for this when you submit the tax return, but you must be able to submit documentation upon our request.

If you think that you've the right to a tax deduction in Norway, you must be able to document that you've paid tax abroad.

Documentation must be from the tax authorities in the source country and must show:

  • which income year the tax applies to
  • that the tax is a final assessment, not a preliminary assessment
  • that the tax is paid
  • which type of tax you've paid (wealth or income tax)

The tax office may require that documentation in a language other than a Nordic language be translated into Norwegian or English by a publically authorized translator.

Enter your pension or disability benefit in your tax return

State the amount, the type of pension, and the country where it was paid in your tax return.

I've paid tax abroad and want to claim a deduction from Norwegian tax

Whether you’re entitled to a deduction for tax paid abroad depends on the tax treaty between Norway and the country in question.

There are two ways to avoid double taxation:

  1. The credit methodmeans you’ll receive a deduction from your Norwegian tax for the tax that you have paid abroad. The deduction is limited to the Norwegian tax on the same income. If you’re claiming a credit deduction, you must enter this in your tax return. 
  2. In some rare cases, double taxation is prevented by using the alternative allocationmethod (the allocation method with progression reservations), which means that your Norwegian tax is proportionally reduced. You must then enter this in your tax return. 

Documentation requirements

If you believe you're entitled to a deduction on your tax in Norway, you must be able to provide evidence of the tax you’ve paid abroad.

This evidence must originate from the tax authorities concerned, and it must contain the following information:

  • The relevant income year
  • That the tax has been finally settled, not just provisionally calculated
  • That the tax has actually been paid
  • The type of tax you’ve paid (tax on wealth or income)

You do not have to attach any documents or other proof to your tax return, but you must be able to provide them if we ask you to.

The Norwegian Tax Administration may require documents in a non-Nordic language to be translated into Norwegian or English by an officially authorised translator.

Tax treaties allow you to avoid double taxation

You can find out how to avoid double taxation by clicking on the relevant income or wealth sources in the points above. Norway has treaties with several countries for the avoidance of double taxation. Which of these methods should be used depends upon what is stated in the tax treaty between Norway and the country in question.

Do you have any questions?

Important information

You do not need to send us any documentation concerning this, but you must be able to present it upon request.