Loans abroad

If you are resident in Norway for tax purposes, you are entitled to a deduction for interest on debt. The deduction for interest on debt is limited if:

• you run/participate in a business abroad and income from the business is exempt from taxation in Norway under a tax treaty,
• you have real property abroad and income from the property is exempt from taxation in Norway under a tax treaty.

However, the deduction will not be limited if you own a residential property or holiday home in another EEA state and the applicable tax treaty states that the income is not taxable in Norway.

The same applies to you if you’re an EEA citizen and resident in this country according to the tax treaty between Norway and the country in question. Your entire income or at least most of your combined income (90 percent or more) must be or have been located in Norway.  

If you’ve claimed a deduction for interest on debt in the country in which the residential property or holiday home is situated, you can also claim a deduction for this amount in Norway. 

If you have claimed a deduction for interest on debt in the country in which the house/apartment or holiday home is situated, you can not also claim a deduction for this amount in Norway.

If you are not resident in Norway for tax purposes, you will generally only be able to claim a deduction for interest on debt that is linked to real property in Norway or business activity which is taxable in Norway.

If you are resident in another EEA state, you can still receive a deduction for interest on debt if all or almost all (90 percent) of your total income is taxable in Norway.

However, if you have received income from real property or commercial activity abroad which is exempt from taxation in Norway under a tax treaty, the deduction for interest on debt is limited.

However, the deduction will not be limited if you own a residential property or holiday home in another EEA state and the applicable tax treaty states that the income is not taxable in Norway.

If you have claimed a deduction for interest on debt in the country in which the house/apartment or holiday home is situated, you will not be entitled to deduct this amount in Norway.

If you are claiming the standard deduction you cannot claim a deduction for interest on debt. As of 01.01.2019 (the tax return for 2019), the right to a standard deduction is limited to foreign seafarers and shelf workers only.

 

You add the information in your tax return yourself. The Tax Administration will automatically make the conversion between foreign and Norwegian currency if you select a foreign currency for the amount. You have to select the appropriate currency from the drop-down list.

You'll have to make the currency conversion yourself if you, for example, submit attachment forms without the functionality for automatic currency conversion.

Conversion of foreign currencies into Norwegian kroner

If we ask you to, you must be able to document the following:

• debt and interest on debt with confirmation from the lending institution,
• if you own a dwelling/holiday home in another EEA state, you must be able to document that you have not claimed a deduction for the interest on debt in the country in which the dwelling is situated,
• if you are not resident in Norway for tax purposes and are claiming a deduction for interest on debt, you must be able to document that all or almost all of your income is taxable in Norway. The basis for comparison is your total income before deductions in the various countries.