Changing the tax value - tax value of residential/holiday property abroad
If you're able to document that the tax value of your residential/holiday property abroad exceeds 30 percent of the property’s true market value, you can have the tax value reduced. The Norwegian Tax Administration will not correct this value on its own initiative.
The valuation must be based on the market value abroad.
The basis for the reduction (valuation, etc.) must date from the period after 1 July of the income year the tax value is related to.
A tax value for holiday property that is significantly above comparable properties elsewhere in the same district may be reduced based on an individual assessment. The tax value must then be set in accordance with the tax values of comparable properties in the district, rather than as a specific proportion of the sales value.
- valuation from a qualified valuer,
- valuation by an estate agent who is familiar with the district,
- observable market value - the price for which the property/plot or a very similar property/plot in the same area has been sold. Documentation of observable market value could be a purchase agreement or similar document stating the sale price.
- By amending your tax deduction card: If you believe that the estimated tax value is incorrect and that this will affect the tax deduction for the 2021 income year, you can amend and order a new tax deduction card. Enter the tax value you believe to be correct. The tax value of residential/holiday property abroad must not amount to more than 30 percent of the property's market value. You must be able to document the market value if the Norwegian Tax Administration asks you to do so. Note that the amended tax value will not be transferred and pre-completed in your tax return. You must also change the tax value in your tax return yourself.
- By amending your tax return: You can change the tax value when you submit your tax return. You can change your tax return if you believe that the tax value exceeds 30 per cent of the property’s documented market value. In the case of residential/holiday property abroad, claims for a new tax value abroad must amount to 30 percent of the documented market value. You must be able to document the market value if the Norwegian Tax Administration asks you to do so. You can also change your tax return if the tax value is significantly above that of comparable properties elsewhere in the municipality.
- Changes after you have submitted your tax return or received a tax settlement notice: If you wish to change the tax value after you've submitted your tax return or received your tax settlement notice, you must do so by submitting an appeal. You can make the change by submitting a new tax return (in order to make a change for the 2020 income year) or by submitting a correction (in order to make a change for the 2018 or 2019 income year). You can make changes to the tax return yourself for up to three years after the deadline for submitting (normally 30 April). However, you cannot make changes yourself if the tax authorities have notified you of an audit of the tax value information or you've been informed that the tax authorities have assessed the tax value. In such cases, you can only change the tax value by submitting an appeal to the tax authorities.
Assessments of the tax value of residential/holiday property abroad are based on the tax value during the previous year. If you've had the tax value reduced in one year, the new reduced tax value will also be used as a basis for the following years, adjusted by the appropriate annual adjustments where applicable.
The tax value should not be adjusted upwards for the 2020 income year. The tax value stated in the 2019 tax assessment notice will be used as a basis for the 2020 income year.
You do not need to send us any documentation concerning this, but you must be able to present it upon request.