BSU - Young people's housing savings
Young people’s housing savings (BSU) is a savings scheme for people under 34 years of age. You can save up to NOK 27,500 per year and you can also claim deductions from your tax. The maximum savings amount is NOK 300,000.
You can only receive a tax deduction for saving in the BSU scheme if you do not already own a residential property.
You can save in the scheme until you are 33 years of age
Up to and including the income year during which you turn 33, you can use your BSU account to save and claim tax deductions. There is no lower age limit for setting up a BSU account, but you can only claim tax deductions after you start receiving an income. You’re advised not to open a BSU account if you’re under 17 and do not receive a taxable employment income.
What is the maximum savings amount?
The annual savings amount cannot exceed NOK 27,500.
The total deposited savings amount cannot exceed NOK 300,000.
Any surplus exceeding the maximum savings amount will be returned to you.
Interest on the savings amount cannot be added to the annual savings amount. Nor is the interest included in the calculation of the maximum savings amount.
Interest cannot be withdrawn before the savings are used to purchase a residential property. However, you can withdraw interest accruing from and including the income year you turn 34.
The rates and amount limits have been changed several times during the last years. See earlier years’ rates.
For the 2022 income year, you can deduct 20 percent of the deposited amount.
For the 2023 income year, you can deduct 10 percent of the deposited amount.
If you’ve deposited savings in your BSU account, you’re entitled to a tax deduction.
For you to be able to claim this deduction, your bank must have notified the Tax Administration that you in fact have deposited money into your savings account before the end of the year. Also, your income must be sufficiently high as to be taxable.
If your income is not high enough, you do not qualify for a deduction. If your income is low and you pay low taxes, you cannot claim a deduction that exceeds your taxes, even if the rates for the maximum BSU deduction amount is higher.
If you save NOK 27,500 per year, you’re entitled to up to NOK 5,500 per year in deductions from your tax. This is automatically included in your tax return.
This is how long you can save in the BSU scheme
There is no requirement for annual deposits. Nor is there a limit on the number of years for saving, but you cannot continue saving once you have reached the age of 34.
You cannot make additional deposits once you have started to use the savings in the BSU account or if the contract has been breached.
This is what you can use the money for
The savings can be used for
- the purchase a new permanent home for your personal use.
- For example, to purchase a freehold, condominium, share or leasehold apartment. This need not be your very first purchase of residential property.
- expenses related to the purchase of your own home.
- For example, document tax, registration fees and other expenses connected with the purchase.
- the purchase sum for a necessary plot of land for the construction of your own home.
- the payment of interest and instalments on the mortgage for your own home, necessary share, condominium or leasehold apartment.
- expenses in connection with renovating and upgrading your own home (improvements and maintenance).
- expenses connected with extensions/additions to your home.
- For example, an annex and a garage attached to your home.
- expenses related to renovations and upgrades of the outdoor area of your home.
- For example, resurfacing, tarmac, stone pavement, veranda and fence.
- an EV charging station, heat pump and solar panels.
The savings cannot be used for
- the purchase of, or payment of the mortgage on, properties other than your permanent home.
- the purchase of a holiday home.
- renovations and upgrades of properties other than your permanent home.
- the purchase of furniture, freestanding household appliances and tools and equipment.
- the purchase of an additional plot of land.
- a houseboat and other mobile units, for example, a caravan, camper and microhome on wheels.
You can only have one BSU account
BSU accounts can only be set up once for each person. You enter into the contract with your bank or another savings institution. You cannot have two BSU accounts or set up a new BSU account once a previous account has been settled.
You can transfer your BSU account from one approved savings institution (such as a bank) to another if the balance is transferred directly between the savings institutions.
In the event of a breach of the rules for BSU savings accounts, you’ll be imposed with additional tax for the income year in which the rules were breached. This additional tax will correspond to the amount for previous years’ tax deductions. If part of the savings was used according to the terms of the contract, the additional tax will only be imposed for the part of the savings that was not used to purchase a new permanent home. In the case of a partial withdrawal for use in connection with a residential property, the terms will be assessed at the time of the first withdrawal.
If your bank has notified the Tax Administration of the deduction, you’ll find it in your tax return. This assumes that you in fact fulfil the requirements for the BSU deduction.
If the deduction is not shown in your tax return despite your having made deposits during the income year into a BSU account, you must ask the bank to notify the Tax Administration of the amount.