Property in Norway - sale, ownership, taxes

Do you own property in Norway, have you sold a house in Norway, or an apartment in Poland? In each of these situations, you may have taxes to pay. In Norway, this will be around 22% of the gain from the sale, and we also pay 1% wealth tax where it applies to us.

Read on to find out more about obligations related to property in Norway!

Owning property

According to Norwegian tax rules, every resident of Norway must include ALL owned property in their annual tax return, regardless of location - both Norwegian and foreign. Properties such as residential homes, holiday homes, etc. must be classified correctly and their market value estimated. Property is included in the taxpayer's wealth, and wealth tax is paid on the value above 1.7 million kr for 2024 (the tax-free allowance is counted twice for married couples, so it is 3.4 million kr). If wealth tax applies to us, we pay a total of 1% on the excess for 2024.

If the taxpayer is not a tax resident in Norway, they do not need to declare foreign property in their tax return.

During an audit by the authorities, both when owning and selling property, appropriate documentation may be required. It is worth keeping this in mind and retaining all necessary related documents.

Selling property

Normally, if we sell property at a profit, we must pay tax of 22% on the base amount - the difference between the purchase price and the sale price. Under Norwegian tax rules, there are conditions that allow a tax exemption when selling property:

• Property in which the taxpayer lived:
  • The taxpayer must have owned the property for at least 12 months before the sale and must have lived in it for at least 12 months during the last 24 months before the transaction.
• Holiday home
  • The taxpayer must have used the holiday home for at least 5 years during the last 8 years and have owned it for at least the last 5 years.

In the above situations, the sale is completely tax-free in Norway!

For other properties, such as plots of land or properties intended for rental, the sale is taxable. The tax base is the difference between the sale price and the purchase price. If the property was received through inheritance or as a gift, the purchase price paid by the donor is taken into account. In the case of a positive difference, the tax is 22%, while in the case of a negative difference the tax is 22% lower.

The rules on taxation of property sales are the same for properties located in Norway and outside its borders.

If you would like to ask about taxes, benefits or other official matters - please contact us: +47 21 38 38 21. We answer Mon-Fri from 9:00 - 21:00 and will be happy to help!