Calculating gains and losses in the tax return – sale of housing or holiday home abroad
When gains are tax-free and losses aren't deductible
If the conditions linked to period of occupancy/use and ownership are met, any gain made on the sale of your own home/holiday home will be tax-free in Norway. Similarly, any loss won't be deductible.
You must make sure that the tax value of the property isn't entered in your Norwegian tax return for the year in which the property is sold.
When gains are taxable and losses are deductible
If you sell a property or holiday home abroad where the requirements concerning period of ownership and occupancy/use aren't met, any gain will usually be liable for tax in Norway.
The calculated tax liable gain/deductible loss must be entered in your Norwegian tax return.
Gains or losses made on the sale of properties/holiday homes must be entered in the tax return for the income year in which the property was taken over by the purchaser. This applies even if the purchase price is paid in full or in part in a different year.
The subsequent procedure for completing the Norwegian tax return will depend on whether you have paid tax on the gain abroad, the location of the property and the method that the tax treaty stipulates is to be used in order to avoid double taxation.
More information about tax treaties between Norway and other countries.
You can use form RF-1318 as a help for calculating tax liable gain/deductible losses.
What to do when:
- The calculated gain must be entered in your Norwegian tax return. It's important that you state the country where the property is situated
- The calculated gain must be entered in the tax return.
- If you've paid tax on the gain (and/or wealth tax) in the country where the property is situated, you must include this in your tax return order to claim a credit deduction.
- You must be able to document tax paid abroad if the tax office asks you to.
- Even if you do not have to pay tax in Norway for a gain, you must still list the gain or loss in your tax return. You must mark the gain or loss as "not taxable" in your tax return.
- Double taxation can also be avoided by applying Norwegian tax rules, using the credit method. For a more detailed description of how to enter gains in your tax return and apply the credit method, see above: ‘Gains will be taxed abroad, and the tax treaty states that the credit method must be used’
Important information
You do not need to send us any documentation concerning this, but you must be able to present it upon request.