Norwegian Real Estate Laws and Regulations

Published on October 23, 2025 and written by Cyril Jarnias

Norway, with its breathtaking landscapes and enviable quality of life, is attracting an increasing number of foreign investors to its real estate sector. However, before diving into purchasing property in Norway, it’s crucial to thoroughly understand the legal and tax framework governing the local real estate market. Here’s a comprehensive overview of the main laws and regulations to know for confidently investing in Norwegian real estate.

A Market Open to Foreign Investors

Good news for international buyers: Norway allows foreigners to acquire real estate properties within its territory. Unlike some countries that impose restrictions on non-resident investors, the Norwegian real estate market is largely open to foreign buyers. Whether you want to buy a primary residence, a vacation home, or a rental property, you enjoy the same rights as Norwegian citizens when it comes to real estate acquisition.

However, there are a few exceptions to this general rule:

• Purchasing agricultural or forest land requires prior authorization
• Certain strategic or military areas may be off-limits to foreign buyers
• Non-residents must obtain a national identification number (personnummer) to finalize a real estate transaction

Overall, the purchasing process is relatively straightforward and transparent for foreign investors. Nevertheless, it’s recommended to hire a local attorney specializing in real estate law to guide you through the procedures.

The Legal Framework of Norwegian Real Estate

The Norwegian real estate market is governed by several laws and regulations aimed at protecting the rights of buyers and sellers. Here are the main statutes to know:

The Alienation of Real Property Act (Avhendingslova): This law governs real estate transactions and defines the obligations of sellers and buyers. It notably requires the seller to provide detailed information about the property’s condition and any potential defects.

The Condominium Act (Eierseksjonsloven): It regulates the operation of condominiums and defines the rights and obligations of co-owners.

The Tenancy Act (Husleieloven): This statute governs the relationships between landlords and tenants, setting rules regarding leases, rent, and termination.

The Planning and Building Act (Plan- og bygningsloven): It defines the zoning and construction rules to be followed for any real estate project.

The Land Registration Act (Tinglysingsloven): It regulates the registration of property titles and mortgages with the Norwegian Land Registry.

These laws ensure a stable and protective legal framework for real estate investors in Norway. However, it’s recommended to thoroughly research local specifics before any purchase, as some municipalities may have additional regulations.

Real Estate Taxation in Norway: Key Points to Remember

The Norwegian tax regime for real estate is generally favorable to investors but has some specificities to be aware of:

Acquisition tax: Unlike many countries, Norway does not impose transfer taxes on the buyer. Only moderate registration fees (approximately 0.2% of the property value) are expected.

Property tax: It is set by each municipality and can range from 0 to 0.7% of the estimated property value. Some municipalities do not apply this tax.

Tax on rental income: Rental income is subject to income tax at the progressive Norwegian rate (up to 38.4% for the highest brackets). Deductions are possible for expenses and depreciation.

Real estate capital gains: Capital gains realized from the resale of a property are taxed at a rate of 22%. Exemptions exist for primary residences under certain conditions.

Wealth tax: Norway applies a wealth tax on real estate, but with property valuations generally below market value (25% for primary residences, 90% for secondary residences).

It’s important to note that Norway has concluded tax treaties with many countries to avoid double taxation. Foreign investors should therefore thoroughly research the tax implications in their country of residence.

Rights and Obligations of Property Owners in Norway

As a real estate owner in Norway, you benefit from extensive rights but must also comply with certain obligations:

Property owners’ rights:

• Freedom to rent your property, with few restrictions on setting rents
• Protection against expropriation (except for major public interest with compensation)
• Right to vote in condominium association meetings
• Possibility to carry out renovations (subject to authorization for major modifications)

Property owners’ obligations:

• Maintenance and repair of the property
• Compliance with safety and habitability standards
• Payment of condominium fees and local taxes
• Declaration of rental income to tax authorities
• Compliance with zoning regulations for any construction or renovation project

It’s important to note that tenants’ rights are well protected in Norway. Leases are generally indefinite in duration, and the grounds for termination by the owner are limited.

Regulatory Developments to Monitor

The legal and tax framework for Norwegian real estate evolves regularly. Here are some recent trends and changes to keep in mind:

Strengthening of energy standards: Norway has adopted stricter regulations regarding building energy performance. Property owners are encouraged to improve the insulation and energy efficiency of their properties.

Regulation of short-term rentals: Some municipalities, particularly Oslo, have introduced restrictions on Airbnb-type rentals to limit their impact on the traditional rental market.

Debate on real estate taxation: Discussions are ongoing about a possible reform of the real estate wealth tax and property tax. Investors should remain attentive to developments in this area.

Digitalization of procedures: Norway continues to digitize real estate-related procedures, thereby facilitating transactions and administrative management for property owners.

Strengthening buyer protection: New rules have been introduced to improve transaction transparency and strengthen sellers’ disclosure obligations.

These developments reflect the Norwegian authorities’ commitment to continuously modernize and improve the real estate regulatory framework. It is therefore crucial for investors to stay informed about legislative and regulatory changes.

In conclusion, the Norwegian real estate market offers excellent opportunities for foreign investors, with a stable legal framework and generally attractive taxation. However, as with any foreign investment, it’s essential to thoroughly research and surround yourself with local professionals to navigate this specific regulatory environment confidently.