EXPLAINED: Norway’s global tax system
Norway has a system which taxes residents on their worldwide income. The system doesn’t just apply to income tax.
Tax residents of Norway must pay tax to the Norwegian authorities on income earned in the country or abroad.
If you stay in Norway for more than 183 days during a twelve-month period, you will become a tax resident of Norway. The same applies when you visit Norway for more than 270 days during a thirty-six-month period.
Should you stay in Norway for more than 183 days in the year you first move to Norway, you will be considered a tax resident from your first day in Norway.
The Norwegian Tax Administration (Skatteetaten) has more information on what constitutes a tax resident on its website. It also has more information on those with a limited tax liability and how taxable income works after you leave Norway.
READ ALSO: Five things foreigners should know about income tax in Norway
What the tax administration considers income can come in many forms. The Norwegian Tax Administration considers salary and wages earned abroad while a tax resident, any income from real estate (such as the sale of foreign property or renting a property abroad out), interest made on foreign savings and any money made from shares and securities abroad as taxable.
You are required to declare these forms of income when filling out your Norwegian tax return. Taxpayers must also add any foreign debts or liabilities (such as a student loan or mortgage) when filling out a Norwegian tax return – doing so can result in tax deductibles.
You can claim a credit deduction on your Norwegian tax return to avoid double taxation on income already taxed in other countries. This is where the tax you have paid abroad is deducted from your tax liabilities in Norway.
Credit deductions can be applied to all types of income abroad, such as interest and money made from shares. Generally, the tax abroad must have been settled and paid for in the same income year.
When adding income from abroad to your tax return, you can include any tax you have paid in the country where you received the money. This will then update your tax return. Norway’s tax administration has a dedicated section on its website for wealth and income abroad, which includes a video on how to claim a credit deduction.
Norway’s global tax also applies to other forms of tax. An example is a wealth tax. Those with a net wealth exceeding 1.7 million kroner for single or unmarried taxpayers and 3.4 million kroner for married couples in Norway.
READ ALSO: What you need to know about wealth tax in Norway
Net wealth means assets and wealth minus any debts and liabilities. For the purposes of the wealth tax, properties abroad don’t receive the same valuation discount one primary home in Norway does. Shares and income abroad also contribute to your global wealth, meaning the two main forms of taxation many will need to be aware of in terms of Norway’s global system are income tax and wealth tax.
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Tax residents of Norway must pay tax to the Norwegian authorities on income earned in the country or abroad.
If you stay in Norway for more than 183 days during a twelve-month period, you will become a tax resident of Norway. The same applies when you visit Norway for more than 270 days during a thirty-six-month period.
Should you stay in Norway for more than 183 days in the year you first move to Norway, you will be considered a tax resident from your first day in Norway.
The Norwegian Tax Administration (Skatteetaten) has more information on what constitutes a tax resident on its website. It also has more information on those with a limited tax liability and how taxable income works after you leave Norway.
READ ALSO: Five things foreigners should know about income tax in Norway
What the tax administration considers income can come in many forms. The Norwegian Tax Administration considers salary and wages earned abroad while a tax resident, any income from real estate (such as the sale of foreign property or renting a property abroad out), interest made on foreign savings and any money made from shares and securities abroad as taxable.
You are required to declare these forms of income when filling out your Norwegian tax return. Taxpayers must also add any foreign debts or liabilities (such as a student loan or mortgage) when filling out a Norwegian tax return – doing so can result in tax deductibles.
You can claim a credit deduction on your Norwegian tax return to avoid double taxation on income already taxed in other countries. This is where the tax you have paid abroad is deducted from your tax liabilities in Norway.
Credit deductions can be applied to all types of income abroad, such as interest and money made from shares. Generally, the tax abroad must have been settled and paid for in the same income year.
When adding income from abroad to your tax return, you can include any tax you have paid in the country where you received the money. This will then update your tax return. Norway’s tax administration has a dedicated section on its website for wealth and income abroad, which includes a video on how to claim a credit deduction.
Norway’s global tax also applies to other forms of tax. An example is a wealth tax. Those with a net wealth exceeding 1.7 million kroner for single or unmarried taxpayers and 3.4 million kroner for married couples in Norway.
READ ALSO: What you need to know about wealth tax in Norway
Net wealth means assets and wealth minus any debts and liabilities. For the purposes of the wealth tax, properties abroad don’t receive the same valuation discount one primary home in Norway does. Shares and income abroad also contribute to your global wealth, meaning the two main forms of taxation many will need to be aware of in terms of Norway’s global system are income tax and wealth tax.
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