How do I enter this in my tax return – renting out a holiday home abroad
If you own a holiday home that you, to a reasonable extent, use for holiday purposes yourself, you can earn rental income up to NOK 10,000 per year tax free. (If you own several holiday homes and you use these to a reasonable extent for holiday purposes, a tax-free amount of NOK 10,000 is allowed for each property).
Of the excess amount, 85 percent will be considered taxable income. You cannot claim a deduction for expenses linked to owning or renting out the property.
In order to rent out a holiday home completely or partially tax-free, you must have used the property for holiday purposes over some time. If you don’t use the holiday home yourself, the rental of your holiday home will be assessed according to the same rules as rental cabins. That means all rental income will be taxable from the first Norwegian krone (NOK).
Example:
You rent out your apartment in Spain to a family for three weeks. You receive a rental income of NOK 9,000 per week. The 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
Taxable income: 85 percent of NOK 17,000 = NOK 14,450
Most wage earners and pensioners who are electronic users will receive the new version of the tax return. Other taxpayers will receive their tax return in the same format as before.
When you log in to view your tax return, you’ll automatically see the tax return you must use.
If you’re not sure which tax return you’ve received, you can see the tax return in different formats.
The detailed procedure for filling in a Norwegian tax return depends on whether you have paid tax on rental income abroad, where the property is located, and which method the tax agreement with the host country gives for avoiding double taxation.
Norway has entered into tax treaties with a number of countries that determine where any income should be taxed. If the property is located in one of the countries Norway has established a tax treaty with, the income will not be taxed in Norway. If the country where your holiday home is located is not a country Norway has a tax agreement with, you can claim a deduction from your Norwegian tax for the tax you have paid abroad.
How to do this:
You enter the total rental income under the topic “Housing and property”. When all the fields are complete, the taxable income will be calculated automatically.
You must enter 85 percent of any rental income exceeding NOK 10,000.
All income must be stated in Norwegian kroner (NOK).
You enter the total rental income under the topic “Housing and property”. When all the fields are complete, the taxable income will be calculated automatically.
You must enter 85 percent of any rental income exceeding NOK 10,000.
If you have paid tax on the rental income (and/or wealth tax) to the country where the property is located, you must include in the tax return that you claim a credit deduction.
All income must be stated in Norwegian kroner (NOK).
Profit / loss (income reduced for deductions) when renting out property in countries that use the distribution method, you must not state in the tax return.
Double taxation can also be avoided by using Norwegian domestic law, through the use of the credit method.
For detailed instructions on how to enter rental income in the tax return and how to use the credit method, see the topic The rental income is taxed abroad, and the tax agreement states that the credit method will be used.