Property Tax in Norway for Expatriates

Published on November 13, 2025 and written by Cyril Jarnias

Navigating the Norwegian tax system can be complex, especially for expatriates who need to juggle various taxes.

In Norway, the emphasis is on income tax, which is often higher than in many other countries, but this comes with substantial social benefits.

In addition to this tax, property tax represents another crucial component of Norwegian taxation, a key player in the local economy, directly affecting expatriates who own real estate.

Understanding these different tax layers is essential for successful integration into Norwegian life and for maximizing benefits from the country’s very generous social system.

Norwegian Tax System: What Expatriates Need to Know

Key Elements of the Norwegian Tax System for Expatriates

Tax Brackets and Income Tax Thresholds:

• Income tax withheld at source each month on the pay stub.
• Flat rate of 22% on income after deductions (excluding Troms og Finnmark); effective rate between 25% and 35% for most taxpayers.
• Tax exemption for income below 100,000 NOK per year.
• PAYE system (Pay As You Earn) at 25% for newcomers in the first year and for income below 697,150 NOK.
• Individual social security contributions of 7.7% to 7.9% of gross salary depending on the situation.
• Bracket tax (“trinnskatt”) with 5 levels, from 1.7% to 17.7% beyond 217,400 NOK in income.
• Wealth tax: approximately 1% of net wealth, including assets abroad.

Tax Type	2025 Rate	Specific Thresholds/Rules
Flat Rate	22%	After deductions
PAYE	25%	1st year, 1,700,000 NOK (indicative threshold)

Specific Taxable Income Categories for Expatriates:

• Employment income: taxed according to the standard scale.
• Rental income: taxed between 22% and 38.4% on net income (after deduction of expenses).
• Dividends: rate increased to 37.84% in 2025.
• Capital gains: advantageous tax regime, with certain exemptions depending on the holding period and use of the asset.
• Global wealth: wealth tax applies to assets held in Norway and abroad for Norwegian tax residents.

Double Taxation and Tax Treaties:

Norway has signed bilateral tax treaties with many countries to avoid double taxation.

Principle of tax credit: tax paid in Norway on rental income, for example, can be deducted from tax due in the country of residence.

Some treaties provide for exemption in one country and exclusive taxation in the other, depending on the nature of the income.

Property Tax for Expatriate Real Estate Owners:

No residence tax in Norway.

Property tax (eiendomsskatt): applicable only in certain municipalities, generally at a low rate.

Assessment criteria: cadastral value (often lower than market value), periodically reassessed by the municipality.

Applicable rates: vary by municipality, generally from 0.2% to 0.7% of the cadastral value.

Exemptions/reductions: possible for primary residences, new housing, or according to locally set social criteria.

Property Tax	Presence	Typical Rate	Tax Base	Possible Exemptions
Residence Tax	No	–	–	–
Property Tax	Yes*	0.2% to 0.7%	Municipal cadastral value	Primary residences, new housing

*Only in municipalities that have implemented this tax.

Practical Tips for Tax Compliance in Norway:

• Register with Skatteetaten (Norwegian Tax Administration) upon arrival.
• Apply for a tax card (“skattekort”): mandatory for working.
• Use Skatteetaten’s tax calculator (available in English) to estimate the amount of tax to pay.
• Check for a tax treaty between Norway and your home country to optimize taxation.
• Declare worldwide income annually if a Norwegian tax resident.
• Keep all supporting documents for income, expenses, and assets.
• When leaving, check the “exit tax” rules on unrealized capital gains.

Resources and Assistance for Expatriates:

• Skatteetaten (Norwegian Tax Administration): official website, calculator, guides in English.
• Expatriate service centers in major cities.
• Embassies and consulates: information on bilateral taxation.
• Specialized firms (tax lawyers, international accountants).
• Expatriate associations (UFE, Accueil Norvège): practical advice and experience sharing.

For any procedure, always consult official Norwegian websites and, if necessary, seek assistance from a professional for complex situations.

Mastering Tax Filing in Norway

Norwegian Tax System and Impact on Expatriates

The Norwegian tax system is based on withholding at source, where income tax is directly deducted from the salary each month. Tax rates generally range between 25% and 35% for most residents, with a flat rate of 22% applied to income after deductions, to which individual social security contributions (7.7% to 7.9%) and a progressive bracket tax are added. Wealth tax (“formuesskatt”) applies above a certain net wealth threshold, with a rate of approximately 1%. Expatriates are subject to these rules once they become Norwegian tax residents, generally after six months of stay or when their economic center of interests is in Norway.

Regarding property tax, Norway does not levy a residence tax and property tax (“eiendomsskatt”) is low or non-existent in many municipalities. However, rental income from real estate is taxed at the progressive rate of 22% to 38.4%, after deduction of expenses and loan interest.

Tax Filing Process and Declarative Obligations for Expatriates

Each taxpayer receives a pre-filled tax return (“skattemelding”) from the administration. It is imperative to verify, correct, and validate the information before the deadline. Expatriates must notably declare:

• All their worldwide income (salaries, pensions, dividends, etc.) if they are Norwegian tax residents.
• Real estate owned in Norway and abroad.
• Debts and financial assets.

In case of departure from Norway, a settlement is made the following year to adjust the amounts actually due or refunded.

Key Dates and Filing Deadlines

Step	Deadline (Fiscal Year N)
Receipt of skattemelding	March – April (year N+1)
Online filing/correction	End of April to early May (year N+1)
Payment of tax balance	August to October (year N+1)

Extensions are possible upon request, especially for expatriates or in complex situations.

Tax Deductions and Credits for Expatriates

Main deductions and credits:

• Personfradrag: personal allowance (79,600 NOK in 2025).
• Minstefradrag: standard deduction (46% of gross income, max. 104,450 NOK).
• Deduction for mortgage interest.
• Professional expenses, dual residence costs, moving expenses.
• Deductions for childcare and certain health expenses.
• Tax credit to avoid double taxation, according to bilateral tax treaties.

To benefit from them, they must be explicitly declared in the skattemelding and supporting documents provided if necessary.

Resources and Online Services from the Tax Administration

• Skatteetaten: official portal (skatteetaten.no) available in English, tax calculation simulators, forms and detailed guides.
• Online filing assistant: step-by-step help to complete the skattemelding.
• Hotline and chat in English for personalized assistance.
• Secure access via BankID or access codes sent by the administration.

Examples of Typical Tax Situations for Expatriates

Situation	Problem Encountered	Effective Solution
Departure from Norway during the year	Settlement of tax balance the following year	Check the skattemelding, report departure, request settlement
Renting a property in France	Potential double taxation	Apply tax credit according to the treaty
Temporary stay (<6 months)	Possible non-resident status	Declare only Norwegian-source income
Change in family status	Forgot to declare dependents	Update family situation in the return

Common Mistakes to Avoid

• Not verifying or correcting the pre-filled skattemelding.
• Forgetting to declare income or assets held abroad.
• Filing the return after the deadline without requesting an extension.
• Underestimating the importance of supporting documents for deductions.
• Forgetting to report a change in situation (departure, move, family change).
• Confusing Norwegian tax residency rules with those of the home country.

⧉ For any procedure, always use the Skatteetaten portal and keep copies of all your supporting documents.⧉

Optimize Your Taxes: Tips for Expatriates in Norway

Income Tax Optimization for Expatriates in Norway

The Norwegian tax system is progressive: the higher the income, the higher the tax rate. For 2024, the standard rate is 22%, with additional brackets (“trinnskatt”) based on income level. Expatriates can benefit from a “PAYE” regime (fixed rate of 25% for temporary foreign workers), but beyond a certain threshold, they must switch to the progressive regime.

Main Optimization Strategies:

• Choose the right tax regime: PAYE for short stays and modest incomes, progressive regime to optimize deductions if high income.
• Use specific deductions: 10% deduction of taxable income for the first two years (replaces other deductions), travel expenses, housing, childcare, family tax credits.
• Professional and personal deductions: dual residence costs, travel expenses, contributions to foreign pension schemes, expatriation-related expenses.

Strategy	Details and Conditions
PAYE Regime	25% fixed, reserved for temporary foreign workers
10% Income Deduction	First 2 years, replaces other deductions
Housing Deductions	Possible if 10% deduction not used
Family Tax Credits	Childcare, education, family assistance
Professional Deductions	Travel expenses, dual residence, foreign pension contributions
Portfolio Rebalancing	Optimize before/after expatriation, depending on home country taxation

Tax Treaties to Avoid Double Taxation

Norway has signed numerous bilateral tax treaties to avoid double taxation. It is crucial to:

• Check the applicable treaty between Norway and your home country (e.g., France/Norway).
• Determine the place of taxation for income (salaries, capital gains, inheritances).
• Use tax credits for taxes already paid abroad.

Optimization of National Social Security Contribution

For expatriates without Norwegian income, it is possible to be exempt from social security contributions, which lowers the overall tax rate to about 17.2%. This exemption depends on tax status and must be validated with the Norwegian administration.

Specific Tax Advantages for Expatriates

• Housing deductions: housing allowances or partial coverage by the employer may be deductible.
• Specific regime for foreign workers: flat-rate deduction of 10% of taxable income for two years.
• Family tax credits: childcare costs, educational assistance.

Management of Property and Real Estate Taxes

To master real estate taxation:

• Properties are assessed by local authorities according to variable criteria.
• Tax rates vary by municipality and cadastral value.
• It is advisable to:
  • Regularly check the official assessment of your property.
  • Contest the assessment if it does not match market reality.
  • Take into account local rate variations in wealth management.

List of Practical Tips:

• Seek advice from a tax expert specialized in international mobility.
• Analyze tax treaties for each type of income (salary, investments, real estate).
• Optimize your deductions by choosing the most advantageous tax regime for your situation.
• Follow deadlines and filing procedures specific to each type of income and property.
• Diversify your investments considering Norwegian rules and international treaties.
• Prioritize transparency and compliance to avoid penalties related to incorrect filing.

Important to Remember: Understanding the Norwegian tax system well, relying on tax treaties, and optimizing deductions and tax credits are essential to limit the tax burden for expatriates while remaining compliant with legislation.