How much tax will you have to pay? - Sale of holiday homes in Norway

If the conditions for tax-free sales are met, gains will never be liable for tax. You will also not be able to claim a deduction for any loss.

If the conditions for tax-free sales aren't met, any taxable gain will usually be taxed as capital income at the rate of 22 percent. Losses will be deducted correspondingly.

If a holiday home is used as a rental cabin, any gain made on the sale of the cabin may in some cases be taxed as business income at the rate of up to 50.6 percent.

Whether or not the sale is considered to constitute commercial activity will depend on an overall assessment which takes into account the scope and duration of the activity.