SHARE
COPY LINK

WORKING IN NORWAY

The potential issues workers in Norway should know about taking their home office abroad

The rise of working from home has meant many have chosen to take their Norwegian job abroad. However, experts have warned that workers should know about several potential consequences.

The potential issues workers in Norway should know about taking their home office abroad
Double taxation and dropping out of the National Insurance Scheme are some of the consequences facing workers in Norway who chose to take their home office abroad. Pictured is a digital work meeting. Photo by Chris Montgomery on Unsplash

The Covid-19 pandemic meant many in Norway have been ordered to work from home multiple times during the last two years.

Many have opted to use this flexible working solution to up sticks and live in another country or visit home for an extended period and take their work with them.

However, tax authorities and auditing firms in Norway have said that those who have chosen to take their jobs with them abroad are now facing some consequences as a result.

“We didn’t receive that many enquiries before Covid-19, but now we have seen very many cases regarding taxes and people taking home offices abroad. What we are seeing now is that many will not have considered the consequences of this,” Oddgier Wilik, a tax adviser at Deloitte Law Firm, told public broadcaster NRK.

Among the complications that have resulted from working for a Norwegian employer but in another country are tax issues.

“You can’t just bring a PC and go (wherever you want). This needs to be planned, and things need to be done in the right order. Otherwise, it can have major financial consequences, both for the employee and employer. Moreover, it is always expensive to fix afterwards,” Wik added.

Norway’s tax administration, Skatteetaten, has said that it has received an increase in questions regarding working remotely from another country.

One of the significant consequences some face is the possibility of having to pay taxes in two countries. 

Furthermore, even though Norway has a tax agreement with several countries, meaning those who pay tax in two countries can get some of the excess taxation refunded, the process of getting a rebate can take a long time.

In addition, you also face dropping out of the National Insurance Scheme, which has knock-on effects for pensions, insurance and sick pay, among other things.

READ ALSO: Can you claim your Norwegian pension from another country?

There is a possibility of staying within the National Insurance Scheme while working abroad, however, you will need to apply with the Norwegian Labour and Welfare Administration (NAV) to do so.

Despite the complications and potential pitfalls, Wik believes the trend of remote workers in Norway taking their home officers abroad is likely to continue.

“Employers who want to keep skilled workers will go a long way (to do so) if the employee wants to work for a period with a home office while abroad. But, they will (the employee) still face a dilemma when they have to decide on the consequences working from abroad can entail,” Wik explained.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

WORKING IN NORWAY

Record job vacancies in Norway: Which sectors need workers?

During the first quarter of 2022, there were a record number of job vacancies in Norway available, but which sectors are most in need of workers?

Record job vacancies in Norway: Which sectors need workers?

Norway passed 100,000 job vaccines during the first three months of the year, figures from Statistics Norway have revealed.

Compared to the same period a year before, the number of job openings increased by 7.3 percent when the figures are adjusted for seasonal variation.

“The number of vacancies was a record high throughout 2021. This quarter we see a further increase, and the number of vacancies is now over 100,000, the highest in over ten years,” Tonje Køber, from the labour market and wages section at Statistics Norway, said.

Unemployment fell to its lowest level since 2009 in the first quarter, also, figures from the Labour Force Survey show. During the first quarter of 2022, unemployment in Norway was 3.1 percent.

READ ALSO: 

Statistics Norway noted that construction was one of the industries with the highest number of vacancies, but the number of job openings was not yet back to pre-pandemic levels.

In the administration and support sectors, more than 11,200 vacancies were registered. Hospitality and accommodation was another sector with a high number of openings throughout the beginning of the year. Across these sectors, 7,000 vacancies were listed.

More than 6,000 openings were also reported for the comms and information sectors. The professional, scientific, and technical industries had just under 8,000 roles available during this period.

The technical and scientific professions were also the industries with the highest growth in the number of vacancies.

The Norwegian Labour and Welfare Administration (NAV) has previously said Norway needs more skilled workers. 

“We now see a strengthened and persistent imbalance between the competence that employers demand and the competence that jobseekers offer,” director of labour and welfare at NAV, Hans Christian Holte, said in a report on unemployment published last month.

SHOW COMMENTS