Taxable value for multi-unit buildings

If you own a multi-unit building at the end of the income year, it must be listed with a taxable value in your tax return. The taxable value is based on either a calculated or proven market value.

Find out how to calculate the taxable value for a multi-unit building here:

Taxable value

A multi-unit building is a residential property with five or more housing units that are not sub-divided into sections.

To calculate the taxable value of a multi-unit building, you must calculate a market value for each housing unit as if it was a separate residential property.

The taxable value of the housing units is assessed according to the rules for secondary dwellings. If you, as the owner of the multi-unit building, use one of the housing units for your own fixed home, this housing unit must be assessed according to the rules for primary dwellings.

The taxable value of the multi-unit building is the sum of the taxable values of all the individual housing units.

If any of the housing units are sub-divided into sections, each section must be given its own taxable value and excluded from the taxable value of the multi-unit building.

Does this apply to me?

This applies to you if you own a multi-unit building with five or more housing units that are not sub-divided into sections.

What is a multi-unit building?

A multi-unit building is a residential property with five or more housing units that are not sub-divided into sections.

If any of the housing units are sub-divided into sections, each section must be given its own taxable value and excluded from the taxable value of the multi-unit building.

Housing unit

A housing unit is a unit in a multi-unit building used for residential purposes that has its own individual property unit number. The housing unit must have a separate entrance and access to water and a toilet without having to pass through another residential property.

Commercial areas within a residential property may be counted as housing units if they can easily be converted into residential use. The condition for this is that the commercial unit is suitable for residential purposes, has a separate entrance and access to water and a toilet without having to pass through another residential property.

A building with five unsectioned units, three traditional housing units, and two commercial units that can be easily converted, must be assessed according to the rules for multi-unit buildings.

Buildings with residential and commercial areas

If the area used for residential purposes is more than half of the building’s usable floor space, then the property must be valued using the rules for residential properties.

If the commercial area takes up more than half of the building’s usable floor space, the property must be assessed as a commercial property.

The multi-unit building has a total usable floor space of 500 square metres. The residential area is 300 square metres and the commercial area 200 square metres. The multi-unit building must then be assessed according to the rules for residential properties.

The multi-unit building has a total usable floor space of 500 square metres. The commercial area is 300 square metres and the residential area 200 square metres. The multi-unit building must then be assessed according to the rules for commercial properties.

What you need to do

Check if your multi-unit building is listed in your tax return, and with the correct market value and taxable value.

The calculated market value for multi-unit buildings is based on the building type, year of construction, and the primary area of each housing unit. In most cases, the calculated market value and taxable value will be pre-filled in the tax return.

You must check if the following information is correct:

whether the housing units are listed as primary or secondary dwellings
the year of construction
the primary area - not sure how to measure the primary area?

You must also check that your ownership share is correct.

If the pre-filled information is incorrect regarding your ownership share or includes a property that you do not own, you must log in to the tax return and correct it.
If the multi-unit building is not listed in the tax return, or if information is missing or incorrect, you must log in to the tax return and correct it.
If your ownership share is not registered, you must prove the ownership.

It’s important that all owners state the same and correct information about the residential property in the tax return.

Check if the multi-unit building you own is listed in your tax deduction card.

The taxable value of your multi-unit building as listed in the tax deduction card is a provisional calculation to ensure that your deducted tax is as accurate as possible in the coming income year.

If you believe that the stated taxable value is incorrect and that the error will affect the deducted tax, you can change this and order a new tax deduction card.

Enter the taxable value you believe to be correct. Read more about taxable value in the tax deduction card.

Please note that the changes you make to your tax deduction card only apply to this year’s tax deduction card and will not be pre-filled in your tax return. This means that you must also make these changes in your tax return.

If the market value and taxable value are too high

We calculate the market value of your residential property using sales data from Statistics Norway (SSB). The residential property’s location, area, year of construction, and the type of housing are all taken into consideration when making the calculation.

You can request an appraisal or valuation of the multi-unit building if the calculated market value is too high.

If you provide supporting documents for the multi-unit building’s market value, all the housing units are assessed as secondary dwellings for the year you prove the market value. This applies even if the owner lives in one of the housing units.

Incorrect information about the multi-unit building will affect the calculated market value. You can change the information in your tax return yourself. The market value and taxable value will be recalculated based on the information you enter.

You must log in to the tax return and check if the housing units are listed with their correct property unit number, year of construction, and primary area.

You must also check that the housing units are correctly listed as primary or secondary dwellings.

The market value is still too high

If the information about the multi-unit building is correct but the market value is still too high, you can request that the multi-unit building is assessed at a proven market value. You must enter the proven market value and update your tax return yourself.

The proof must be dated after 1 July in the income year for which you are claiming a reduction. The person who valued or gave an estimated value on your residential property must have inspected the property both inside and outside.

Valid proof:

a valuation from a qualified valuer, or
a valuation by an estate agent who is familiar with the district in which the residential property is located, or
observable market value - the price for which the property or a similar property in the same area has been sold. Proof of the observed market value could be a purchase contract or a similar document stating the sales price. By a similar residential property, we mean a building with a similar floor plan, size, standard, view, and light and noise conditions. Referring to a general market value of residential properties in the area is not sufficient.

The proven market value must include any share of joint debt the property may have at the time of the sale.

If you request that the multi-unit building be assessed according to the proven market value

The proven market value applies to the year in which you request the reduction of the taxable value in the tax return. For this first year, all the housing units are assessed as secondary dwellings. This applies even if the owner lives in one of the housing units.

For the following five years, you’ll be automatically granted a reduction in taxable value with the same percentage-based reduction as was calculated the year in which you proved the market value. The percentage reduction is calculated based on the difference between the calculated market value and the proven market value.

After this five-year period, the multi-unit building’s market value will be recalculated based on information about its location, property type, year of construction, and primary area.

If you believe that the calculated market value for the multi-unit building is too high, you must again prove the market value and request that the residential property is valued at a proven market value.

For the current income year:

The calculated market value of your multi-unit building is NOK 40,000,000. You can prove that the market value is NOK 32,000,000.

If you provide supporting documents as proof of the multi-unit building’s market value, all the housing units will be assessed as secondary dwellings for the year you prove the market value. This applies even if the owner lives in one of the housing units.

The market value of NOK 32,000,000 is used as the basis for the income year. For secondary dwellings, the taxable value is 100 percent of the market value.
The taxable value for the first year is NOK 32,000,000.

For the next five years:

To find next year’s reduction of the calculated market value, and thereby the taxable value, you must find the proportional reduction to the calculated market value. This calculation happens automatically in your tax return. You do not have to do anything.

The calculated market value was reduced by NOK 8,000,000.
(40,000,000 – 32,000,000 = 8,000,000). This means that the calculated market value was reduced by 20 percent.
(8,000,000/4,000,000 x 100 = 20 percent).

The calculated market value must then be reduced by 20 percent (proportional reduction) in your assessment for the next five years.

If the calculated market value for the next income year is NOK 42,000,000, this value will then be reduced by 20 percent. This means a reduction of NOK 8,400,000.

The calculated market value to be used as the basis will then be:

NOK 33,600,000 NOK (42,000,000 – 8,400,000 = 33,600,000).

If all housing units are secondary dwellings, the taxable value is NOK 33,600,000.

If the owner lives in one of the housing units, this unit must be assessed as a primary dwelling. The other housing units must be assessed as secondary dwellings.

Calculate the market value of your residential property yourself with our housing calculator.

Remember! You must enter information for each individual housing unit and add them together to calculate the market value of the multi-unit building.

Special information if you have

Change of ownership

The judicial registration ensures your legal protection as the owner. This means that no one can place an attachment on your property or sell it without a legal basis. You’re not obliged to register the property.

If you register a change of ownership with the Norwegian Mapping Authority, the Tax Administration will automatically receive information about the registered ownership and can pre-fill the property in the correct owner’s tax return.

If you do not register the change of ownership

If you do not register the change of ownership, you must send us proof of the ownership.

The proof must include the following information:

which property it applies to
from which date the ownership applies
the price that was paid for the property, if any
the date and signature(s) of all parties

You may submit the supporting documents as soon as the sale or transfer of ownership has taken place. You can also log in to the tax return, change the ownership information, and add supporting documents.

If the multi-unit building has one housing unit that has been equipped for commercial purposes, such as a hair salon, shop, or similar, this must be assessed according to the rules for residential properties.

The taxable value must be included in the total taxable value of the multi-unit building.

If the multi-unit building has a commercial area that can be considered a housing unit, this must be assessed according to the rules for residential properties.

The commercial unit must be considered a housing unit if it’s suitable for residential purposes, has a separate entrance, and access to water and a toilet without having to pass through another residential property.

Any commercial unit that cannot be considered a housing unit must not be included in the total taxable value of the multi-unit building.

In most cases, the calculated market value and taxable value will be pre-filled in the tax return.

If the value has not been pre-filled or if you wish to make changes for previous years, you can use the housing calculator to calculate the value of each housing unit:

The housing calculator

You must select the calculator for the relevant year and enter the necessary information for each housing unit. The taxable value of the multi-unit building is the sum of the taxable values of all the individual housing units.

How to report for previous years

Housing information and the tax value must either be specified in:

the tax return for wage earners and pensioners

The tax return for sole proprietorships (self-employed persons)

Log in to the tax return for the year in question. Add “multi-unit building in Norway” and enter the information.
If the tax return was submitted using an accounting or annual accounts system, you must follow the help advice provided by the system. Contact the system provider if you have any questions.

Tax return for limited liability companies

If the tax return was submitted via Altinn, the taxable value must be entered in item 401G “Owner-occupied housing in Norway”, and the information must be entered.
If the tax return was submitted using an accounting or annual accounts system, you must follow the help advice provided by the system. Contact the system provider if you have any questions.

The company tax return for businesses assessed as a partnership

If the company tax return was submitted via Altinn, the taxable value must be entered in item 510G “Owner-occupied housing in Norway”, and the information must be entered.
If the company tax return was submitted using an accounting or annual accounts system, you must follow the help advice provided by the system. Contact the system provider if you have any questions.