Lessee (the tenant) - rightsholder

Residential property on leased land

You’ll be liable for net wealth tax as if you were the owner of both the plot and the building. Because of this, you’ll be entitled to a deduction from your debt for the capitalised value of being obliged to pay ground rent.

• Taxable value: The value of the plot will be included in the calculation of the taxable value for residential property, based on the primary area/year of construction/geographic location/property type and use. The taxable value will be determined according to the regulations that apply to primary dwellings or secondary dwellings, depending on how you use the property.
  
  In the tax return, the taxable value of both the residential property and the leasehold plot must be listed. You must check that accurate and complete information concerning the residential property is given in the tax return.

• Deduction for debt: Your obligation to pay annual ground rent will be included in the tax return through you receiving a deduction for debt relating to the capitalised value of the annual ground rent. The deduction for debt is calculated by multiplying the annual ground rent by a capitalisation factor, which is 10 for the 2023 income year. The deduction for debt will be stated in the tax return. 
  
  Example:
  Anne’s home is situated on leased land. She pays an annual ground rent to the landowner of NOK 30,000. Based on information concerning the primary area, geographic location, property type, year of construction and Anne’s use, she has had a taxable value of NOK 600,000 calculated. (For more details on the calculation, see the housing calculator). In the tax return, the taxable value of NOK 600,000 must be stated. In addition, Anne must make sure that the deduction for debt of NOK 300,000 (30,000 x 10) is stated in the tax return. 

Holiday property on leased land

You’ll be liable for net wealth tax as if you were the owner of both the plot and the building. Because of this, you’ll be entitled to a deduction from your debt for the capitalised value of being obliged to pay ground rent.

• Taxable value: The value of the plot must be included in the taxable value of holiday properties in the tax return. If the value of the plot has not been included in the taxable value, you must add this. The surcharge for the plot is calculated by multiplying the annual ground rent with a capitalisation factor, which is 10 for the 2023 income year.
  
  If the surcharge for the plot results in the property’s taxable value significantly exceeding the valuation level for comparable properties elsewhere in the municipality, or 30 percent of its market value, you can ask for it to be reduced. Read more about the procedure for this.
  
  
• Deduction for debt: You’ll also be entitled to a deduction for debt in your tax return. The deduction for debt is calculated by multiplying the annual ground rent by a capitalisation factor, which is 10 for the 2023 income year.
  
  

Jointly owned properties that own holiday property on leased land

For owners of units in a jointly owned property with a holiday home in one or more buildings on leased land, the deduction for debt will have been pre-filled correctly if the jointly owned property has submitted third party information to the tax authorities. The individual owner must increase the taxable value in the tax return themselves if the surcharge for the building plot has not been entered in the pre-filled taxable value. 

Housing associations that own holiday property on leased land

For owners of units in housing associations with a holiday home in one or more buildings on leased land, the deduction for debt and the taxable value will have been pre-filled correctly as the housing association must perform the calculations referred to above. See the statement from the company and the tax return.

Lessor - landowner

• Capitalised taxable value: Lessors are not liable for net wealth tax on the value of the leased land. Instead, you’ll be liable for net wealth tax on the capitalised value of being entitled to charge annual ground rent. This will be shown in the tax return. The capitalised value is calculated by multiplying the annual ground rent by a capitalisation factor, which is 10 for the 2023 income year. If the ground rent changes during the year, use the rent that applies at the end of the year.
  
  Example:
  The owner of the plot on which Anne’s house stands (see the example above) must enter a taxable value in the tax return linked to the right to charge ground rent of NOK 300,000 (30,000 x 10). 
  
  
• Because the lessor will not be liable for net wealth tax on the value of the leased plot, you must check that the same plot is not listed with a taxable value in the tax return.
  
  If the entire property is leased, you must delete any taxable value that is listed for this property in the tax return.
  
  However, if only part of the property is leased, the taxable value must be reduced proportionately.
  The procedure for this is as follows:
• If a taxable value has previously been assessed for the leased plot, but in a way which means that the taxable value is included in the total taxable value of the property, you must deduct the taxable value of the leased plot. The value you deduct must be proportionate in order to take into account any percentage-based adjustments to the taxable values during the years since the taxable value was assessed. If the value of the leased plot amounted to 20 percent of the taxable value of the entire property at the time the taxable value was determined, the reduction must be 20 percent of the taxable value of the property for the income year.
• If the taxable value of the leased plot has not previously been assessed, you must reduce the total taxable value of the property by the capitalised value of the ground rent for the leased plot. If the reduction in accordance with this point results in the taxable value of the remaining (unleased) part of the property being lower than that of other comparable properties, you must enter a new taxable value which corresponds to that of similar properties and which does not exceed 80 percent of the verifiable market value. Provide information on the change in a separate attachment to the tax return. The tax office can set a new taxable value.