Item 4.3.5

4.3.5 Other real property

Applies to the income year 2017

If you own other real property as of 31 December 2016, the tax value must be entered under this item. 'Other real property' means plots of land, commercial property, farms or other real property with or without a taxable yield. The tax value is determined on the basis of a previous tax value for the property, the cost price of newly erected buildings or the sales value/purchase sum. There will be no general increase in the capital values of other real property for the 2016 income year. However, the capital value should be increased if the property's value rose from 1 January 2016 as a result of significant improvements, etc.

Does this item concern me?

  • owns a plot of land as of 31 December,
  • owns a farm/agricultural property as of 31 December.
  • owns Norwegian commercial property as of 31 December. Form "RF-1098 Formue av næringseiendom" (Capital value of commercial property - in Norwegian only) must be submitted together with the tax return,
  • owns other real property with or without a taxable yield,
  • or who has sold or purchased one of the above types of property before 31 December but not had the sale or purchase registered by 31 December.

How do I enter this in my tax return?

Item 4.3.5 of the tax return is generally pre-completed with the capital value that was determined for the property during the previous year's assessment. You must check that everything is correct.

However, if no general increase in capital value is stipulated, the capital value may be increased if the property has risen in value from 1 January 2017 due to material improvements. In addition, the value of properties with a lower capital value than comparable properties may be increased.

The value of agricultural property/farms is determined collectively for farm buildings, farmhouses, housing derived from surrendered property, soil and land. In the case of the purchase or transfer of agricultural property/farms, the new owner must complete and submit RF-1013 Kostpris for landbrukseiendom (Cost price for agricultural property – in Norwegian only). In the form, the property’s total cost price must be allocated between the individual assets belonging to the agricultural property/farm.

The capital value of the property will be stated under item 4.3.5. The capital value must not amount to more than 80 percent of the property’s market value or cost price (including land).

Note that there is a specific limit for assessments of the capital value of farmhouses. The capital value of farmhouses may not exceed 30 percent of the market value. As the capital value of farmhouses on farms is included in the combined capital value of the farm/agricultural property, the total market value must be split between the farmhouse and a suitable associated plot, and the rest of the property. (The capital value of the rest of the property will not be affected by any reduction in the capital value of the farmhouse).

The value of plots is determined on the basis of their market value. The tax value of undeveloped plots must not exceed 80 percent of the property's market value.

Under item 4.3.5, you must enter the amount from item 295 in form RF-1098. The value of Norwegian commercial property is determined on the basis of its rental value, among other things. Form RF-1098 must be submitted together with the tax return. The tax value of commercial property shall not exceed 96 percent of the property's market value.

Incorrect tax value relative to market value

If you believe that the capital value of your property (plot, farm, etc.) exceeds 80 percent of the market value, you should change the capital value in the item. The corresponding limit for commercial property is 96 percent of the market value.

If you have sold the property, but it is still shown in the tax return, you must delete the property under the item.

If the property is not shown in the tax return, you must enter the necessary information on it yourself. You must state the municipality, holding number, subholding number, section number and/or lease number, ownership share as a percentage, and the tax value.

Documentation requirements

You do not need to send us any documentation for this, but you must be able to present documentation if we ask for it.

If you alter the tax value because you believe it is too high relative to the market value, you must be able to document the market value, either through a valuation or a recent observable sales value if we ask for such documentation.