How to enter in your tax return – letting of holiday homes in Norway
In the case of a holiday home that you also use for leisure purposes to a reasonable extent, rental income up to NOK 10,000 per year will be tax-free. (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 taxable income.
You're not entitled to a deduction for costs related to the letting.
By rental income, we mean the fee paid to you as rent. In addition, any other payments for additional services closely related to the rent, such as the final cleaning, electricity bills, firewood etc., are treated as part of the rent.
If you rent out the property through a rental agency/booking firm that charges a fee for their services, you must pay tax on the amount before deducting the fee.
Examples:
Peder Ås lets out his holiday property during the winter and Easter holidays for a total of NOK 15,000. The rent includes cleaning of the cabin.
| Total income | NOK 15,000 |
| - Tax-free income | NOK 10,000 |
| Sum | NOK 5,000 |
Taxable income:
85 percent of NOK 5,000 = NOK 4,250
Marte Kirkerud lets out her cabin in the South of Norway for four weeks during summer.
The agreed upon rental fee is NOK 20,000.
Here, the rental income equals what you're paid in rent. If the property is let out through a letting agency/booking agency that calculates their own commission, the taxable amount is the amount before the commission is deducted.
In addition, any other agreed upon payment for additional services that are closely related to the letting, such as final cleaning, electricity, firewood etc., should be considered part of the rental income.
|
the cabin surfboard and canoe final cleaning Total income |
NOK 20,000 NOK 2,000 NOK 1,000 NOK 23,000 |
| - Tax-free income | NOK 10,000 |
| Sum | NOK 13,000 |
Taxable income:
85 percent of NOK 13,000 = NOK 11,050
Lars Holm lets out his mountain cabin during the Easter holiday through a local letting agency.
The agreed upon rental fee is NOK 15,000.
The letting agency takes 20 percent of the agreed rent as payment for its services. This amounts to NOK 3,000. Lars is therefore left with NOK 12,000 after the letting agency has taken its share.
However, when calculating taxable income, the gross amount is used as the basis. The gross amount being the agreed upon rental fee before the letting agency's commission is deducted:
|
Total income |
NOK 15,000 |
|
- Tax-free income |
NOK 10,000 |
|
Sum |
NOK 5,000 |
Taxable income:
85 percent of NOK 5,000 = NOK 4,250
You must enter 85 percent of any rental income exceeding NOK 10,000.
Important information
You do not need to send us any documentation concerning this, but you must be able to present it upon request.