How to calculate the tax value of residential/holiday property abroad

The tax value of real property abroad must be determined in accordance with Norwegian rules. Any tax value stipulated by foreign tax authorities must not be used in connection with the Norwegian tax valuation.

The tax value of both residential and holiday properties abroad is determined according to the rules that apply to holiday properties in Norway.

For properties that have not previously had a tax value determined under Norwegian rules, the tax value is set to a maximum of 30 percent of the market value of the property abroad, or alternatively 30 percent of the construction costs, including the plot of land. Annual percentage adjustments may be made in the case of holiday properties.

No such general upward adjustment of the tax value has been established for the 2020 income year.

The obligation to pay tax in Norway is limited under some of the tax treaties that Norway has entered into with other countries.