Norwegian Tax for expats - Residency

I recently had a call regarding what constitutes tax residency in Norway and specifically the 90 day rule.


If you are resident in Norway for tax purposes, you will be liable to pay tax to Norway on all assets and income, whether located or earned in Norway or abroad. Tax agreements with other countries may limit your taxes to Norway.


What constitutes 'Residence for tax purposes' ?


When you stay for one or several periods in Norway for more than 183 days during a 12-month period you will be considered as tax resident in Norway. The same applies to persons staying in Norway for one or several periods for more than 270 days over a 36-month period. Every whole or part of a calendar day of stay in Norway is included when calculating the number of days.


If you stay in Norway for more than 183 days during the year you moved to Norway, you are resident for tax purposes from the first day of your stay in Norway. If the 183 days are divided between two income years, you will become a tax resident from 1 January in the second year. (You will have limited tax liability the preceding year. This means that you are only liable to pay tax on certain income linked to Norway.)


If you stay in Norway for more than 270 days over a 36-month period, you will be resident for tax purposes from 1 January in the year when your stay exceeds 270 days. (You will have limited tax liability the preceding year/s.)


The 90 day rule


You may stay an average of 90 days per year in Norway without becoming resident for tax purposes in Norway.

Norwegian Tax for expats

The Norwegian tax year runs from 1 January to 31 December of each year. 


New rates for income tax and thresholds came into being from 1 January 2012 as follows:

Norway Income Tax Brackets

Tax Bracket (yearly earnings)	Tax Rate (%)
kr0 - kr456,400	12.55%
kr456,400 - kr741,700	21.55%
kr741,700 and up	24.55%

Norway has a bracketed income tax system with three income tax brackets, ranging from a low of 12.55% for those earning under kr456,400 to a high of 24.55% for those earning more then kr741,700 a year.

The Norwegian tax system can be complicated and a minefield for those having to engage with it for the first time. Even those expats who have been around the Norwegian tax system for some time finding it daunting. Deal with the Norwegian Tax Office is no easier than dealing with HMRC so that should tell you something !

For a an expat filing a tax return in Norway there are a number of common types of submission:

1. An employee of a Norwegian company

2. An employee of a foreign company working in Norway

3. A self-employed individual who is ordinarily a Norwegian resident

4. A self-employed individual who is not ordinarily resident  in Norway

5. A Seafarer who is ordinarily a Norwegian resident

6. A Seafarers who is not ordinarily a Norwegian resident

There are, of course, many other permutations to these and others to add but these are the most common types that I have come across.

Deciding which category an individual falls into is the first task and then finding out what possible Norwegian tax liabilities and reliefs are available is the next.

How a Norwegian tax return is compiled 

This is dependent on the category or worker. For example:

As an employee of a company, Norwegian or otherwise, the company will submit details of income and tax deducted at the end of a tax year. The Norwegian tax office will then send the employee a tax return with this information pre-printed. It is then up to the employee to agree with it or make claim for amendments including tax reliefs which, of course, the tax office will not volunteer !

As a self-employed individual, all of the clients must submit a tax deduction certificate to the Norwegian Tax Office. The self-employed worker then has to compile their own accounts (or get an accountant to do it) and to submit the tax return, claiming any reliefs which they think are applicable.

Tax returns can be submitted on paper or online. The deadlines are by these dates after the end of the tax year:

1. Paper tax returns - 31 March

2. Online tax returns - 30 April

Extensions can be made by the tax office prior to the end of the tax year. Any tax unpaid or late filing of tax returns can be subject to interest and penalties. 

Share your experience with us regarding Norwegian Tax. I am sure there a a few stories we can all learn from !

If you have a question please contact us or post a comment here and I will try to help.