Do you own a property in Norway, have you sold a house in Norway or an apartment in Poland? In any of these situations, you may have taxes payable. In Norway, it will be approximately 22% of the profit from sale, we also pay 1% property tax if it applies to us.
Read on to learn more about real estate obligations in Norway!
Owning real estate
According to Norwegian tax regulations, every Norwegian resident must include ALL real estate he or she owns in his or her annual tax return, regardless of their location - both Norwegian and foreign. Properties such as residential houses, holiday homes, etc. must be properly classified and their market value estimated. Real estate is included in the taxpayer's assets, and property tax is paid on the value exceeding NOK 1,7 million for 2024 (the tax-free amount is counted twice for married couples, i.e. NOK 3,4 million). If the property concerns us, we pay a total of 2024% of the surplus for 1.
If the taxpayer is not tax resident in Norway, he or she does not have to declare foreign real estate in his or her tax return.
Appropriate documentation may be required during an official inspection, both when owning and selling real estate. It is worth keeping this in mind and keeping all necessary related documents.
Sale of real estate
Typically, if we sell a property for a profit, we must pay tax of 22% on the initial amount - the difference between the purchase price and the sale price. According to Norwegian regulations, there are conditions that allow tax exemption when selling real estate:
- The 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 in the last 24 months before the transaction.
- Summer house
- The taxpayer must have used the holiday home for at least 5 years in 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!
In the case of other properties, such as plots or properties intended for rent, it is subject to tax. The tax base is the difference between the sales price and the purchase price. If the property was received by inheritance or gift, the purchase price paid by the donor is taken into account. In case of a positive difference, the tax is 22%, while in the case of a negative difference, the tax is 22% less.
The rules regarding taxation of the sale of real estate are the same both for real estate located in Norway and abroad.
If you want to ask about taxes, benefits or other official matters, please contact us: +47 21 38 38 21. We answer Mon.-Fri. from 9:00 a.m. to 21:00 p.m. and we will be happy to help!
