Tax rules - letting of holiday homes abroad
If you are considered to be a tax-resident of Norway, rental income from properties abroad will, in principle, also be tax liable in Norway under the same rules that apply to the letting of holiday homes in Norway.
In the case of a holiday home which you use for leisure purposes, rental income up to NOK 10,000 per year will be tax-free. Only 85 percent of the rental income that exceeds NOK 10,000 will be taxable.
If you own several holiday homes and you use them for leisure purposes to a reasonable extent, a tax-free amount of NOK 10,000 is granted for each of them. Of the excess amount, 85 percent will be considered tax liable income.
Rental income may however also be taxable in the country where the property is located.
You can use the wizard for holiday homes abroad – which provides information about the tax consequences of buying, selling, inheriting and letting holiday homes abroad.
Typical holiday properties abroad are houses in the country, apartments, bungalows and other holiday homes.
The holiday property is considered to be your own holiday home if, over time, you use the holiday home to a reasonable extent (for example for holidays) and the property doesn't have the character of a rental property. If you don't, any letting of the holiday home will be assessed under the rules applying to cabin rentals, and all rental income will be tax liable from the first krone.
The property will be characterised as your own holiday home even if it's let for leisure purposes for parts of the year, as long as you use the same holiday property to a reasonable extent.
Furthermore, other people's use of the property will also help determine whether it can be considered and taxed as a holiday home. For example, if the entire property or parts of the property are used as a permanent home by co-owners, leaseholders or others, this usually causes the property to be considered a residential property and not a holiday home.
You let your apartment in Spain to a family for three weeks. You receive NOK 9,000 per week. Total income will then be NOK 27,000 per year.
|
Total income |
NOK 27,000 |
|
Tax-free income |
NOK 10,000 |
|
TOTAL |
NOK 17,000 |
Tax liable income 85 percent of NOK 17,000 = NOK 14,450