Norway – Taxation

How does the tax system in Norway work?

The Norwegian Tax Administration (Skatteetaten) is the central authority responsible for collecting taxes and enforcing tax legislation across the country. In contrast to federal systems like Germany’s — where individual states (Länder) have their own income tax rules — Norway operates a predominantly unified national framework. That said, local municipalities do retain limited powers, such as the ability to impose property taxes at the local level.

Your tax obligations in Norway hinge significantly on your residency status. Anyone who spends at least 183 days in Norway within a 12-month period, or 270 days across any 36-month period, is regarded as a tax resident. The second of these thresholds is a distinctive feature of Norwegian law: while most other countries rely solely on the standard 183-day annual rule, Norway extends residency status to those who accumulate more than 270 days in the country over any rolling three-year window.

If you are present in Norway for more than 183 days in your first year of arrival, your tax residency begins from day one. When your days are spread across two different income years, residency is deemed to start on 1 January of the second year. It is worth noting that being recorded in Norway’s National Population Register as a resident does not automatically confer tax resident status.

Tax residents are liable for Norwegian tax on all income worldwide, while non-residents are only taxed on income generated within Norway. Income tax is collected through a withholding arrangement: employers deduct tax directly from employees’ salaries based on a tax card the employee obtains from the tax authority. This works along the same lines as Pay As You Earn (PAYE) systems found in countries such as the UK, though Norway also requires an annual reconciliation through the skattemelding (tax return).

One of Norway’s most distinctive features is the public nature of its tax records. Since 1882, citizens have had the right to view others’ declared income and tax contributions — a tradition intended to encourage pay transparency and deter tax avoidance. For the most current information on rates and rules, always consult the Norwegian Tax Administration (Skatteetaten) website directly.

Does Norway have double taxation agreements, and how do they affect expats?

Norway has concluded tax treaties with around 90 countries, most of which are designed to prevent the same income from being taxed in two jurisdictions simultaneously. The precise mechanism for avoiding double taxation depends on both Norwegian domestic law and the specific provisions of the bilateral treaty involved. A complete list of Norway’s treaty partners is published at regjeringen.no, the official Norwegian government portal.

Norwegian double taxation agreements (DTAs) generally employ one of three approaches to eliminating dual taxation. Under the credit method, a deduction is granted against your Norwegian tax liability for taxes already paid abroad, up to the equivalent amount of Norwegian tax on that same income. The alternative allocation method proportionally reduces your Norwegian tax so that no Norwegian liability falls on salary that has already been taxed in the other country. Under the allocation (exemption) method, income earned abroad is fully excluded from Norwegian taxation.

The applicable treaty will also specify which country has primary taxing rights over you as a resident. The majority of treaties assign residency to the country where your permanent home is located. Where you maintain a permanent dwelling in both countries, the deciding factor becomes where your closest personal and financial ties are centred.

Norway’s taxing rights may be constrained by the terms of any relevant treaty. Claiming DTA relief is not automatic — you must take active steps. If you assert limited tax liability in Norway on the basis of being resident in another country under a tax treaty, you must do so through your tax return by logging in, marking the relevant income and assets as non-taxable, and providing an explanation under the “Other circumstances” section.

It is also important to be aware that most of Norway’s tax treaties do not cover wealth tax, which is instead governed by Norwegian domestic legislation. Residents from certain countries may, however, be exempt from Norwegian wealth tax under specific bilateral provisions. As of January 2024, this exemption applies to residents from countries including Brazil, China, Indonesia, Israel, Italy, the USA, and several others. Any supporting documentation for foreign tax payments that is written in a language other than Norwegian or English must be translated by an authorised translator.

What taxes do expats need to pay in Norway?

Norway’s tax framework includes several distinct layers, each of which may affect expatriates living and working in the country. Below is an overview of the key taxes relevant to expats.

Income tax

Norwegian income tax is composed of a base rate combined with a step tax, creating a progressive overall structure. The standard base rate (alminnelig inntekt) applied to ordinary income is 22%, though residents in Finnmark or Nord-Troms benefit from a reduced rate of 18.5%. On top of this, a step tax (trinnskatt), also known as bracket tax, applies at escalating rates depending on income level. As of 2025, the bracket steps are reported as ranging from 1.7% up to approximately 17.6–17.7%. When combined with national insurance contributions, multiple sources indicate that the highest marginal personal income tax rate reaches close to 47.4%.

National insurance contributions

The standard national insurance contribution rate for 2025 is 7.9% of personal income. Individuals earning below NOK 69,650 are not required to make any contributions. Different rates apply to the self-employed. These contributions fund Norway’s welfare state, covering healthcare, pensions, and various social benefits. For individuals aged 17 to 69 earning salary income, the applicable rate is 7.7% in 2025 and 7.6% in 2026.

All individuals performing services in Norway — including non-residents receiving remuneration for work carried out there — are subject to social security and pension contribution obligations. Foreign nationals may be fully or partially exempt from these contributions under social security agreements or upon application, provided they have adequate coverage in their home country. Citizens of EEA member states may also be exempt from Norwegian social security under the terms of the EEA agreement.

Capital gains tax

Capital gains on shares are treated as ordinary income and taxed at 22% for 2024. This rate applies to interest, dividends, and gains from the disposal of shares. As of 2025, the effective rate on dividends received by an individual is 37.84%. Special exemption rules apply to gains from the sale of a primary residence: generally, such gains are tax-free where the owner has occupied the property as their main home for at least 12 of the 24 months immediately before the sale — always verify the precise conditions with Skatteetaten.

Net wealth tax

Norway is one of a small number of countries that still levies an annual net wealth tax, a feature that can have considerable consequences for foreign individuals relocating there. Wealth tax is payable to both the municipality and the state, and it is calculated on the basis of your net assets — including real property, bank balances, shares, and business capital — after applying any applicable valuation discounts and deducting liabilities.

For 2025, the state wealth tax rate is 0.475%, applied to net assets exceeding NOK 1,760,000 for single or unmarried taxpayers and NOK 3,520,000 for couples. Net wealth above NOK 20,700,000 is taxed at a higher state rate of 0.575%. The municipal wealth tax rate of 0.525% applies to wealth above NOK 1,760,000 in both 2024 and 2025. Since rates and thresholds are reviewed each year in the national budget, always check the Skatteetaten wealth tax rates page for the latest figures.

Property tax

Property tax in Norway is a local levy imposed by municipalities on both residential and commercial real estate. The rate and the basis used for calculation vary widely between municipalities. In general, the annual tax falls somewhere between 0.2% and 0.7% of the assessed property value, though not every municipality applies a property tax at all — check with your local authority to find out what applies in your area.

Inheritance and gift tax

Norway scrapped its inheritance and gift tax in 2014. As of 2025, no such tax exists in Norway, though heirs who later sell inherited assets may incur capital gains tax on any appreciation in value since the time of acquisition. Given that legislation can change, always confirm the current position with Skatteetaten or a qualified tax adviser.

Are there any tax breaks or special regimes for expats in Norway?

Norway does not offer a broad preferential regime along the lines of Portugal’s former Non-Habitual Resident programme or Italy’s flat-tax arrangement for new arrivals. However, there are two noteworthy options available to foreign workers that can ease the administrative burden and, in some cases, lower the overall tax payable.

The PAYE scheme (kildeskatt på lønn)

A simplified tax arrangement designed specifically for foreign employees has been available since the 2019 income year. Under this scheme, employees who opt in are issued a tax deduction card carrying a flat PAYE rate of 25%, and the employer withholds this amount directly from each salary payment — with the tax fully settled at the point of payment. This removes the requirement to submit a full annual tax return, providing a straightforward administrative process, though it equally means that no individual deductions can be claimed.

To remain within the scheme, your earnings must fall below NOK 725,050 in 2026 (the corresponding threshold for 2025 was NOK 697,150). Those who visit Norway for short work stays — fewer than 183 days in a 12-month period or fewer than 270 days in a 36-month period — will automatically be enrolled in PAYE each time they apply for a tax deduction card. Workers exempt from Norwegian national insurance contributions are subject to a reduced PAYE rate of 17.4%.

The 25% rate is inclusive of social security contributions. Once enrolled in PAYE, no deductions of any kind may be claimed. Before committing to this option, it is advisable to compare your expected liability under both the PAYE scheme and the general tax system using Skatteetaten’s online calculator, as the standard system may prove more favourable for those with substantial deductible expenses.

Standard deductions for new arrivals

All residents are entitled to a standard deduction (minstefradrag) and a personal deduction (personfradrag). From 2025, the standard deduction for employment income is set at 46% of income, subject to a ceiling of NOK 92,000. The personal deduction stands at NOK 108,550 for 2025. For foreign taxpayers who are only present in Norway for part of the year, the personal deduction is reduced on a proportional basis.

EU/EEA residents with limited tax liability

If you are resident in another EU/EEA country and have limited tax liability in Norway, you may request to be assessed as though you were a Norwegian tax resident, provided that at least 90% of your income from employment, pension, disability benefits, or business activity is subject to Norwegian taxation. This entitles you to claim most standard deductions available to residents.

How and when do expats file a tax return in Norway?

The Norwegian tax year runs from 1 January to 31 December. Each spring, the Norwegian Tax Administration issues pre-populated tax returns drawing on income and deduction data submitted by employers, banks, and other third parties. Taxpayers are responsible for checking this information thoroughly, making any corrections needed, and adding any details not already captured before submitting the return by the relevant deadline.

For the 2024 income year, the filing deadline was 30 April 2025 for most employees and pensioners, and 31 May 2025 for the self-employed. In more complex circumstances — particularly those involving cross-border elements — an extension may sometimes be requested; check with Skatteetaten for what is currently available.

The step-by-step process for filing your tax return in Norway is as follows:

1. Obtain a Norwegian identification number. Access to official Norwegian services requires either a personal identity number or a D-number. Expats who have not yet completed permanent registration will initially be assigned a D-number.
2. Get a tax deduction card (skattekort). Your tax deduction card is the practical starting point for participating in the Norwegian tax system. It shows your estimated annual income and the corresponding withholding rate your employer should apply. You can apply for one through the Skatteetaten website.
3. Set up secure digital access. Logging into the Altinn portal requires a recognised digital identity tool such as BankID, MinID, or Buypass.
4. Review your pre-filled return (skattemelding). The annual tax return (skattemelding) typically becomes available in April. Although pre-populated, you must carefully check all entries for errors or gaps and make any necessary additions.
5. Declare foreign income and wealth. As a Norwegian tax resident, you are obliged to report all income and assets held abroad in your Norwegian return, including details of which country each item of income or wealth is located in.
6. Claim any DTA relief or deductions. If the same income is being taxed in another country as well, you can apply for a credit against your Norwegian tax liability for the foreign tax paid. This must be included in your return and supported by appropriate documentation.
7. Submit online via Altinn. The vast majority of taxpayers file electronically through the Altinn portal, which hosts the pre-filled return and enables online submission. For those who need or prefer it, paper return forms can be downloaded from the Tax Administration’s website.

The Skatteetaten website is available in English and offers tax calculators, deduction guidance, and step-by-step assistance. An English-language helpline and chat service are also available for personalised queries. For complicated cross-border tax situations, engaging a professional adviser with relevant expat experience is strongly recommended.

What are the tax implications of leaving Norway?

Departing Norway does not instantly sever your Norwegian tax obligations, and the rules are particularly rigorous for those who have spent many years in the country.

When a Norwegian tax resident moves abroad, they continue to be treated as resident for tax purposes until the first income year in which they can demonstrate that they spent no more than 61 days in Norway in total (from 1 January through 31 December) and that neither they nor any closely related person had a dwelling in Norway available to them during that period.

For individuals who have lived in Norway for ten or more years before the year in which they establish permanent residence abroad, Norwegian tax residency is automatically maintained for the year of departure and the three subsequent income years. During this extended period, a Norwegian tax return must be submitted in the same manner as if you were still living there, and you must be able to demonstrate that no dwelling was available to you in Norway and that you spent no more than 61 days in the country in each of those years.

Exit tax on unrealised gains

The rules governing the taxation of latent capital gains upon emigration were revised with effect from 1 January 2025. The assets within scope include shares and equity certificates in Norwegian-domiciled companies, mutual funds, cooperatives, and comparable entities. Individuals leaving Norway become subject to an exit tax, which can be paid immediately upon emigration, spread across instalments over a twelve-year period with no interest charged, or settled in full after twelve years with interest applied. Share savings accounts and capital insurance policies are also captured within the exit tax regime.

Your obligation to file a Norwegian tax return continues until the Norwegian tax authorities formally accept that your Norwegian tax residency has ended. It is important to notify Skatteetaten of your departure and to retain clear evidence of when you left, including your new foreign address and confirmation that any Norwegian property rights have been relinquished.

Practical tips for managing taxes as an expat in Norway

• Keep a precise record of your days in Norway from the outset. Every day physically spent in the country counts toward the residency threshold, including working days, holidays, and family visits. Norwegian tax authorities treat both arrival and departure days as full days. Maintain a personal log and hold onto boarding passes, hotel receipts, and similar records as evidence.
• Apply for your tax card (skattekort) without delay. If your income or deductible expenses change significantly at any point during the year, apply for a revised tax deduction card promptly to avoid underpaying or overpaying tax throughout the year.
• Consider carefully whether PAYE or the standard system is more advantageous. If you are uncertain whether your income will remain below the PAYE threshold, you can begin with PAYE and switch out later. Use the online tax calculator on the Skatteetaten website to compare your estimated liability under both options.
• Report all income and assets held outside Norway. Norwegian tax residents are liable to Norwegian tax on worldwide income and wealth. Declaring only Norwegian-sourced income and omitting foreign assets or earnings can lead to penalties and interest charges.
• Take advice before disposing of significant assets. The sale of shares or property can give rise to substantial Norwegian tax liabilities. The revised exit tax rules that took effect on 1 January 2025 make this especially important for anyone planning to leave Norway in the near future.
• Actively claim DTA relief rather than waiting for it to be applied. Treaty-based credits and exemptions are not applied automatically by Skatteetaten — you must claim them yourself within your tax return. Ensure that any foreign tax documentation is available and, where necessary, translated into Norwegian or English.
• Check your pre-filled return every year rather than accepting it as correct. While the skattemelding is pre-populated using data from third parties, it regularly omits foreign income, overseas bank accounts, and assets held abroad. You are legally responsible for the accuracy of the information submitted.
• Engage a specialist tax adviser when needed. Managing concurrent obligations in two or more countries can be complicated, and many expats find it worthwhile to work with a professional who has expertise in cross-border taxation. Skatteetaten’s own website and its service centres in major Norwegian cities are also valuable free resources for general guidance.

Frequently asked questions

When does tax residency begin for someone who moves to Norway?

If you spend more than 183 days in Norway during your first year in the country, tax residency applies from your very first day. Where your days are divided across two consecutive income years, residency begins on 1 January of the second year. The 270-day rolling 36-month rule may also come into play for those who divide their time between Norway and another country over several years.

Does Norway tax worldwide income?

Norwegian tax residents are liable to Norwegian tax on all income and wealth, wherever in the world it arises. Non-residents, by contrast, are taxed only on income that has its source within Norway, such as wages earned from Norwegian employment or rental income from a Norwegian property.

Is there inheritance tax in Norway?

Norway removed its inheritance and gift tax from the statute book in 2014, and as of 2025, no such tax exists. However, individuals who subsequently sell assets received by inheritance may become liable for capital gains tax on any appreciation in value since the date of acquisition. Always verify the current legal position with Skatteetaten or a professional adviser, as the law is subject to change.

What is the PAYE scheme and who can use it?

The PAYE scheme is available to certain foreign workers — in particular those on short-term assignments who do not qualify as Norwegian tax residents and remain in the country for a limited period. Under the scheme, a flat rate of 25% is withheld directly from salary by the employer, doing away with the need for an annual tax return. For the 2025 income year, the earnings ceiling for remaining within PAYE is NOK 697,150; any income above this figure must instead be taxed under the standard progressive system.

How does Norway tax foreign pension income?

If you move abroad and continue to receive a Norwegian pension or disability benefit, you are required to declare it in your tax return. Where a pension is taxable in both Norway and your country of residence, it falls to the country of residence to ensure that the income is not taxed twice. In the reverse situation — a Norwegian tax resident receiving a pension from abroad — the foreign pension must generally be declared in your Norwegian return. Consult the relevant DTA and Skatteetaten’s guidance for the particulars of your circumstances.

What is the Norwegian wealth tax, and does it apply to assets held abroad?

Norwegian tax residents are generally subject to wealth tax on their assets globally. As of 2025, the combined municipal and state rate amounts to approximately 1% on net wealth exceeding NOK 1,760,000 for single taxpayers, increasing to around 1.1% on wealth above NOK 20,700,000. Because rates and thresholds are revised annually, always verify the current figures at skatteetaten.no.

What penalties apply for late filing of a Norwegian tax return?

Skatteetaten may impose compulsory addition charges where a return is submitted late or important information has been left out. Interest is also levied on any tax that has been underpaid. In certain complex cross-border cases, an extension beyond the standard deadline may be available on request. Always check the rules currently in force on the Skatteetaten website and submit on time to avoid incurring additional costs.

How can I find out whether my home country has a tax treaty with Norway?

The full list of Norway’s tax treaty partners, together with the relevant treaty texts, is available at regjeringen.no. The Skatteetaten website also offers a searchable resource covering treaty countries by income type, including categories such as property income. Where no treaty exists between your country and Norway, Norwegian domestic tax law will apply in its entirety, without any reduction or exemption.