Tax rules – sale of property or holiday homes abroad
If you're a tax resident of Norway, any gain made on the sale of property abroad will usually also be tax liable in Norway under the same rules that apply to the sale of real property in Norway.
In any assessment of whether the sale of rural housing, cabins, apartments, etc. abroad entails a taxable gain or a deductible loss in Norway, consideration must be given to the Norwegian rules - as if the property were situated in Norway. Losses made on the sale of real property abroad will only be deductible in Norway in cases where any gain made on a sale would have been taxable in Norway.
Any gain made on the sale of real property may also be taxable in the country in which the property is situated, under the rules that apply in that country.
To avoid double taxation of the same income, Norway has entered into tax treaties with many other countries.
Period of ownership and occupancy/use
The sale of residential property abroad will be tax-free insofar as you have:
- owned the property for at least one year before the sale is agreed, and
- used the property as your own home for at least one of the last two years preceding the sale.
The sale of holiday homes abroad will be tax-free if you have
- owned the property for at least five years, and
- used the property as your own holiday home for at least five of the last eight years preceding the sale.