Norway – Property Taxes

What taxes and fees apply when buying a property in Norway?

The principal cost associated with acquiring real estate in Norway is stamp duty — referred to in Norwegian as dokumentavgift, or document tax. This is a charge levied when a document transferring ownership of real estate is presented for registration, calculated at a flat rate of 2.5% of the property’s sale value at the point of registration. Unlike systems such as the UK’s, which apply tiered rates across different price bands, Norway uses a single uniform rate applied to the entire market value.

The obligation to pay both stamp duty and the registration fee falls on the buyer. Registering a deed costs NOK 545 — a minor administrative charge. The fee for registering mortgage documents over real estate is approximately €47 per document (as of 2025). These charges are payable to the Norwegian Mapping Authority (Kartverket), the body responsible for maintaining the Land Register.

The fair market value of a property is ordinarily equal to the agreed purchase price, though in some circumstances the two may diverge — in such cases, fair market value forms the basis for the tax calculation. Where a transaction is conducted at arm’s length, the purchase price is used in practice.

Worked example: For a property acquired at NOK 4,000,000, stamp duty at 2.5% comes to NOK 100,000. Adding the deed registration fee of NOK 545 and a mortgage registration fee of roughly NOK 500–600, the total government charges to the buyer come to approximately NOK 101,000–101,200 (as of 2025). Always verify current fee levels with Kartverket and the Norwegian Tax Administration.

The transfer of real estate is exempt from VAT under Norwegian VAT legislation, meaning no VAT is added to the acquisition price. Construction work, however, does attract VAT, so buyers of newly built properties should clarify with their developer how construction-related VAT is factored into the agreed price.

Transferring shares in limited liability companies or partnerships that own real estate does not attract stamp duty. This is a significant structural feature of the Norwegian market: investors frequently acquire property indirectly through a share purchase in a property-holding company (commonly called an SPV), thereby circumventing stamp duty entirely. Registration with Kartverket is essential to obtain legal protection upon buying real estate, shielding the buyer against claims by the seller’s creditors and competing third-party interests.

There is no mandatory notary requirement for standard residential transactions in Norway — the parties may prepare and submit the deed directly to Kartverket, though many buyers engage a lawyer or estate agent to manage the process. Stamp duty and registration fees apply on equal terms whether the buyer is resident in Norway or not.

What taxes and fees apply when selling a property in Norway?

Norway does not impose any distinct transfer taxes on sellers. Stamp duty is borne by the buyer, not the vendor. The seller’s principal transaction costs comprise estate agent (megler) commission, any legal or conveyancing expenses, and, where relevant, capital gains tax on any profit realised from the sale (addressed in the following section).

Estate agent commissions in Norway generally fall within a range of around 1% to 3% of the sale price, with additional fixed charges covering marketing, photography and administration. These rates are set by the market rather than prescribed by law, so sellers are advised to obtain competing quotes. Sellers may also choose to sell privately (selge selv), though the great majority of Norwegian home sellers prefer to work through a registered agent.

When computing a taxable gain, sellers are permitted to deduct costs incurred in connection with the disposal of real estate. Agent commissions, legal fees and expenditure on capital improvements may therefore generally be subtracted from the sale proceeds before calculating any capital gains liability. Losses arising on the disposal of assets are tax-deductible for individuals and companies alike, and tax losses may be carried forward indefinitely.

Sellers should additionally take note of any outstanding municipal property tax (eiendomsskatt) owing at the time of sale, which is customarily resolved as part of the conveyancing process. Any arrears should be cleared before completion. There is no exit tax or withholding mechanism applied to the seller’s proceeds at the point of transfer; however, capital gains must be declared in the annual tax return.

How does capital gains tax work on property in Norway?

Capital gains arising from the sale of Norwegian property are taxed at 22%. This rate applies to the net gain — meaning the difference between the disposal price and the original acquisition cost, after permissible deductions such as agent fees, legal costs and capital improvement expenditure. Norway does not apply an indexation adjustment to account for inflation, so gains are measured in nominal terms.

The most significant aspect of Norwegian property CGT is the main residence exemption. A gain on the sale of your house or apartment is entirely tax-free provided you have owned the property for more than one year and have used it as your primary residence for at least one year within the two-year period immediately preceding the sale. This rule is notably straightforward and generous compared to systems such as Australia’s main residence exemption, where partial CGT may apply for periods of non-occupancy.

Gains from selling a holiday home are also tax-exempt, provided you have owned the property for more than five years and have occupied it as a holiday home for at least five of the eight years prior to the sale. Properties that do not satisfy either exemption — such as a buy-to-let apartment or a secondary residence — will attract CGT at 22% on any profit.

Worked example: You purchased a secondary apartment for NOK 3,000,000 and sold it five years later for NOK 4,200,000. Agent fees and legal costs totalled NOK 80,000, and renovation work cost NOK 120,000. The taxable gain is: NOK 4,200,000 − NOK 3,000,000 − NOK 80,000 − NOK 120,000 = NOK 1,000,000. CGT at 22% = NOK 220,000 (as of 2025). Always verify the applicable rate with the Norwegian Tax Administration (Skatteetaten).

Losses are deductible for tax purposes only where any corresponding gain would have been taxable. Where a property would have qualified for the main residence exemption, no loss deduction is available either — the symmetry principle applies in both directions.

Capital gains realised by non-resident owners on the sale of Norwegian real estate are also subject to Norwegian tax. That said, where a non-resident individual meets the same qualifying conditions as a resident — for instance, selling a primary home after meeting the required occupancy period — the exemption applies equally. Norway does not apply withholding tax to property sale gains, but the seller is required to report and settle any applicable tax. Non-resident sellers should determine whether their country of residence has a double taxation agreement with Norway and seek advice from a qualified professional familiar with both tax systems.

Are there any ongoing annual property taxes in Norway?

The majority of Norwegian municipalities impose an annual property tax on real estate. This tax may be levied on residential buildings, commercial buildings, or both. In municipalities where property tax applies, every owner or occupant of residential or commercial premises bears a local property tax liability. However, not every Norwegian municipality charges this tax — it is a matter of local discretion, and the position will therefore vary depending on where your property is situated.

Local property tax is based on valuation rules set at the municipal level and is designed to approximate market value. The rate applied varies between 0.1% and 0.7% depending on the municipality, though for residential properties the rate is capped at 0.4%. The structure is broadly comparable to municipal rates found in various European countries, although the Norwegian system uses a percentage of assessed value rather than a fixed band or flat charge.

In some municipalities, the property tax payable on primary and secondary dwellings is determined by reference to the estimated market value used to establish the tax value for real property purposes. The calculated market value for residential property draws on data from Statistics Norway (SSB) on residential property sales, taking into account location, size, year of construction and property type.

Beyond municipal property tax, resident individuals are liable to net wealth tax (formuesskatt), which incorporates the value of real estate in the calculation of net assets. For the 2025 income year, the municipal net wealth tax rate stands at 0.525% on global assets exceeding a net threshold of NOK 1,760,000 for single or unmarried taxpayers and NOK 3,520,000 for spouses. The overall wealth tax rates are 0.85% on net wealth up to approximately NOK 20.7 million, and 1.1% on wealth beyond that amount. In contrast to the US property tax model — which is purely asset-based and applies to all property owners — Norway’s wealth tax is a personal net-wealth charge and only resident individuals fall within its scope.

For wealth tax purposes, a primary dwelling is assessed at 25% of its estimated market value. A secondary dwelling in Norway is assessed at 90% of its estimated market value. For certain high-value secondary properties, the taxable value reaches 100% — consult the official Skatteetaten guidance for your specific circumstances.

How does inheritance tax apply to property in Norway?

As Norway levies no inheritance, estate or gift tax, transfers of property by death or by gift carry no specific tax consequences at the point of transfer. Gifts and inheritances pass to the recipient free of tax. Norway abolished its inheritance and gift tax in 2014, placing it among a small number of European nations with no such charge — a sharp contrast to France, where succession duties can reach 45% for distant relatives, or Ireland, where capital acquisitions tax at 33% applies above certain thresholds.

While receipt of an inherited property is itself tax-free, the ongoing tax position of the heir warrants careful consideration. Norway operates under a continuity principle, whereby the recipient takes over the donor’s tax basis in the assets with certain modifications. Under this approach, if assets are gifted or pass to heirs on death, the recipient assumes the original acquisition cost as their own — there is no automatic step-up to fair market value at the point of death or gifting, and any unrealised capital gain is carried over to the heir.

This has tangible practical consequences: if you inherit a Norwegian property that a parent originally purchased at a low price many years ago, the accumulated latent gain transfers to you, and you will be liable for CGT at 22% on the full gain if and when you sell — subject to any applicable exemptions. The applicable rules can differ depending on whether the deceased or the donor could have sold the property tax-free at the time of death or gifting, and this can determine whether a gain is taxable or a loss is deductible when the heir or recipient later disposes of the property.

Although Norway has abolished inheritance and gift taxes, income flowing from inherited or gifted assets — such as rental income or future capital gains — remains subject to applicable taxes. For current rules on inherited property, consult the Norwegian Tax Administration (Skatteetaten) or a qualified Norwegian tax adviser.

How does gift tax apply to property transfers in Norway?

Norway imposes no estate, inheritance or gift taxes, and nor does it have a separate generation-skipping transfer tax. A property may therefore be gifted — whether to a family member, partner or any other individual — without giving rise to a gift tax charge at the moment of transfer, irrespective of the property’s value or the nature of the relationship between the parties.

This represents a notable structural departure from systems such as those in the United States — where a lifetime gift tax exemption exists and transfers exceeding it can trigger federal gift tax — or Denmark, where gift tax applies to transfers above certain thresholds to recipients outside the immediate family. In Norway, the absence of gift tax means property can pass between generations or between any individuals without a tax event occurring on the transfer itself.

However, as with inherited property, the continuity principle means that the recipient of a gifted property assumes the donor’s original acquisition cost as their own tax base. Receiving a property as a gift does not itself create a taxable event, but when the recipient ultimately sells, a taxable gain may arise — and correspondingly, a loss would be deductible. The capital appreciation built up during the donor’s period of ownership does not simply disappear; it carries forward to the recipient, who must account for it on any eventual disposal.

Under Norwegian law, non-residents may both give and receive property without gift tax implications. However, recipients should investigate whether the rules in their country of residence might treat an inbound gift as taxable income or as a dutiable transfer. It is always advisable to seek guidance from a tax professional with expertise in both Norwegian law and the law of your country of residence before making or accepting a significant property gift.

How is rental income from property taxed in Norway?

Net rental income generated by letting an apartment in Norway is subject to income tax at 22%. Deductions are available for costs associated with the letting, including insurance premiums, heating expenses and maintenance. This net-income approach — whereby permissible costs are deducted before the tax rate is applied — is broadly comparable to the treatment of rental income in countries such as France or the Netherlands, and stands in contrast to systems that tax gross rental receipts.

Further deductible expenses typically available to landlords include property management fees, agent letting commissions, repairs and maintenance, building insurance and, notably, mortgage interest. Where real property is held in Norway, a deduction may be claimed for interest on debts connected to that property. Mortgage debt taken on to acquire the property, or subsequently to invest in it further, is ordinarily regarded as sufficiently linked to the property to qualify.

An important owner-occupied rental exemption also exists. As a general rule, income from letting a private residence is taxable; however, an exemption applies where more than half of the property — measured by imputed rental value — remains at the owner’s disposal. Similarly, income from a semi-detached house or duplex is not taxable where the owner occupies more than half of one of the two units.

Distinct rules govern short-term letting of your own home. Where you let your primary residence for brief periods, the first NOK 10,000 in rental income is tax-free; of any surplus above that threshold, 85% constitutes taxable income. For holiday homes that you also use personally, the same NOK 10,000 tax-free threshold applies, and 85% of any excess above that amount is treated as taxable income.

Worked example — long-term rental: Annual rental income of NOK 200,000; allowable expenses (mortgage interest, insurance, maintenance, agent fees) totalling NOK 60,000. Net taxable rental income = NOK 140,000. Tax at 22% = NOK 30,800 (as of 2025). Verify current deduction rules at Skatteetaten.

Norway taxes real estate situated within its borders regardless of the owner’s residence or citizenship. Rental income from Norwegian property received by non-residents is subject to Norwegian income tax. If you reside abroad and own real property in Norway, you will be issued a Norwegian tax return. Where the property generates taxable rental income, you must file your tax return declaring that income. The deadline for submission is 30 April of the year following the income year.

Are there any tax advantages or incentives for buying property in Norway?

Norway provides several meaningful tax benefits for property owners. The most widely utilised is the deductibility of mortgage interest. If you own a house, apartment or other real estate in Norway, a number of tax reliefs are available — including the deduction of mortgage interest and costs linked to housing cooperative (borettslag) arrangements. The relief operates at the standard income tax rate: the benefit is effectively 22% of the interest paid — so NOK 10,000 in interest yields a NOK 2,200 reduction in tax (as of 2025). There is no ceiling on the amount of mortgage interest that may be deducted.

A dedicated savings programme for first-time buyers exists under the name BSU (Boligsparing for ungdom — housing savings for young people). BSU is a specialist housing savings arrangement designed for young people; funds held in a BSU account must be applied towards purchasing a first home or repaying a mortgage on a first home. The tax relief is 10% of the amount saved — up to a maximum benefit of NOK 2,750 per year — with a lifetime savings cap of NOK 300,000 across all years. The scheme is available to Norwegian tax residents and carries age and income conditions — verify eligibility with Skatteetaten.

The main residence exemption from capital gains tax is itself a substantial tax incentive for owner-occupiers. As detailed above, a gain on a qualifying primary home is entirely free of tax, conferring a considerable advantage over investment properties. The wealth tax valuation discount for primary dwellings — where only 25% of estimated market value is included in the wealth tax base — provides an additional ongoing benefit for owner-occupiers compared with holders of secondary properties, which are assessed at 90% of market value.

For most of these measures, tax advantages do not generally vary according to nationality or residency status — with the notable exception of wealth tax, which applies only to resident individuals. The BSU scheme is likewise confined to residents with taxable income. Non-residents purchasing investment property in Norway do not benefit from these exemptions in the same way, but they are subject to the same mortgage interest deduction rules on rental property as residents. Always confirm eligibility conditions with Skatteetaten or a qualified Norwegian tax adviser.

What are the tax implications for foreign nationals buying property in Norway?

Norway does not place general restrictions on foreign investment and is broadly open to foreign entities investing in real estate. Norwegian legislation imposes no specific prohibitions on foreign entities acquiring real estate. Certain sectors are, however, subject to particular restrictions or concession requirements. There is no supplementary stamp duty surcharge for foreign buyers — the 2.5% rate applies uniformly to all purchasers regardless of nationality.

The person acquiring or receiving a property must either apply for a concession, complete a self-declaration of exemption from the concession requirement, or demonstrate that the requirement does not apply to them. For the majority of standard residential purchases in urban areas, a self-declaration is sufficient; a formal concession is more commonly required for rural or agricultural land. The Norwegian Mapping Authority can issue a D-number to foreign nationals who need one in connection with registration in the Land Registry. Foreign nationals who lack a Norwegian personal identification number will need to obtain this D-number before title can be registered in their name.

Norway taxes real estate situated within its territory regardless of the owner’s residency or citizenship. Non-residents must therefore file a Norwegian tax return to declare rental income or capital gains. If you reside in another Nordic country and own real property in Norway, you carry a limited tax liability in Norway in respect of the tax value of and income derived from that property. The tax value and income are computed in the same manner as when the owner is tax-resident in Norway.

Non-residents are generally not subject to Norway’s net wealth tax, meaning ownership of Norwegian property by a foreign resident does not trigger a wealth tax liability. Municipal property tax (0.1%–0.4%) attaches to the property itself, irrespective of ownership. A non-resident owner may therefore still face an annual municipal property tax obligation depending on where the property is located.

Norway has concluded tax treaties with more than 90 jurisdictions, and its treaty network broadly follows the OECD Model Convention. In practice, double taxation treaties typically allocate taxing rights over real estate income and gains to Norway as the country in which the property is situated, while providing mechanisms to prevent the same income or gain from being taxed twice. The precise interaction between Norwegian tax and the tax rules of your country of residence will depend on the specific treaty in force and your personal circumstances — always consult a qualified adviser with expertise in both systems before purchasing.

Non-residents should also be mindful of reporting obligations in their country of residence. Depending on where you are tax-resident, the purchase, ownership or sale of Norwegian property may need to be disclosed to your home country’s tax authority, even in cases where a double taxation treaty ensures that Norwegian tax paid can be credited against any domestic liability.

Frequently asked questions: property taxes in Norway

Do I pay capital gains tax if I sell my Norwegian property as a non-resident?

Capital gains arising from the disposal of Norwegian real estate by a non-resident owner are taxable in Norway. However, where a non-resident individual satisfies the same conditions as a resident for a tax-free sale — for example, selling a primary home after fulfilling the requisite occupancy period — the exemption applies equally. The standard rate for taxable gains is 22% (as of 2025). You should also determine whether your country of residence taxes the gain and whether a double taxation treaty between that country and Norway is relevant. Consult Skatteetaten and a qualified adviser for current guidance.

Can I deduct mortgage interest on rental income in Norway?

Yes. Where real property is held in Norway, a deduction may be claimed for interest on debts connected to that property. Mortgage debt raised to acquire the property, or subsequently to invest further in it, is ordinarily considered sufficiently linked to the property to qualify. The deduction is available to both residents and non-residents. Verify the current deduction rules with Skatteetaten.

Is there a wealth tax on property in Norway?

Norway levies an annual net wealth tax on individuals — at approximately 0.85% on net assets above certain thresholds. Only resident individuals fall within the scope of wealth tax. A primary dwelling is assessed at only 25% of its estimated market value for wealth tax purposes, resulting in a comparatively low base. Non-residents are generally not subject to Norway’s net wealth tax. Check the threshold and rates for the current tax year at Skatteetaten’s wealth tax page.

Is there inheritance tax or gift tax on property in Norway?

Norway abolished its inheritance and gift tax in 2014, so gifts and inheritances pass to the recipient entirely free of tax. However, under the continuity principle the recipient assumes the donor’s original acquisition cost, meaning any unrealised capital gain carries over and may become taxable when the recipient eventually disposes of the property. No gift tax arises when transferring property between individuals in Norway.

How much stamp duty do I pay when buying a home in Norway?

Stamp duty is payable at the point of registering a deed that transfers ownership of real estate, at a rate of 2.5% of the property’s sale value at the time of registration. This charge falls on the buyer. On a NOK 5,000,000 property, stamp duty would therefore amount to NOK 125,000 (as of 2025). A deed registration fee of NOK 545 is also payable. Confirm current rates with Skatteetaten.

Do I need to pay VAT when buying a property in Norway?

The transfer of real estate is exempt from VAT under Norwegian VAT legislation, so no VAT is added to the acquisition price. Construction work does, however, attract VAT, and buyers of newly built properties should therefore clarify with the developer how construction costs and VAT are structured within the contract price.

How is short-term holiday letting taxed in Norway?

Where you let your own home for short periods, the first NOK 10,000 in rental income is tax-free; 85% of any amount above that threshold is treated as taxable income. For holiday homes that you also occupy personally, the same NOK 10,000 tax-free threshold and 85% rule apply. Net taxable income is subject to tax at 22%. Verify current thresholds with Skatteetaten.

Are there any first-buyer or savings incentives for property in Norway?

Yes — the BSU scheme provides a tax credit of 10% on annual contributions up to a defined limit, specifically designed to assist first-time buyers in accumulating a deposit. Funds in the BSU account must be used to purchase a first home or to repay a mortgage on a first home. The lifetime savings cap is NOK 300,000 across all years, and the annual tax benefit is capped at NOK 2,750 per year (as of 2025). The scheme carries residency and age conditions — check current eligibility at Skatteetaten.