Are there any taxes you need to pay if you leave Norway?
Norway will implement a new "exit tax" aimed at wealthy individuals leaving the country. However, there may be other tax obligations if you decide to leave.
A new exit tax is in the works that will tax those who have made gains of more than 500,000 kroner on shares if they decide to move from Norway.
Given the size of the gains, the tax may not be relevant for everyone who leaves the country. There is also no official tax on leaving the country.
READ ALSO: What we know so far about Norway's plans for an exit tax
However, there are still some other taxes you may be subject to if you leave Norway. Even if you report leaving Norway, that doesn't mean that potential tax liabilities to the country cease.
You will get a tax return from Norway as long as you are a tax resident of the country. This means that in many cases, you will receive a tax return for the year you left Norway, which will arrive after you have left the country.
For example, if you leave in 2024, you will receive a tax return in 2025.
The Norwegian Tax Administration's website has plenty of guides that explain the global tax liability to Norway, how to tell when your tax liability ceases, and whether you will have a tax liability to Norway after moving.
Property
You may need to pay property-related taxes when you decide to leave Norway. These taxes will likely be paid before you leave Norway but after you decide to leave.
Gains and losses on property are taxable or tax deductible. If you sell the house within a year of purchasing it, this will appear on your tax return and may mean that tax needs to be paid to Norway.
If you've owned the house for more than a year after the sale, you don't need to worry about a tax bill.
Should you decide to keep your property in Norway and rent it out while you live outside the country, rental income can be taxed as income that must be paid to Norway. Furthermore, you may be liable for municipal property tax.
The profit on renting out residential property is taxed at a rate of 22 percent.
Wealth tax
While you are still considered a tax resident of Norway, meaning that you have spent 183 days in any 12-month period or 270 days in aggregate in any 36-month period in the country, you may also be liable for wealth tax.
The tax rate ranges between 1 and 1.1 percent of one's net wealth above 1.7 million kroner (or double that for married couples).
The wealth applies to net wealth, so is minus any debts such as mortgages. The tax has proved controversial and has been linked to an exodus of wealth from Norway.
READ ALSO: Why Norway’s controversial wealth tax isn’t going anywhere for now
Other income and potential taxes
Gains made on shares and equity certificates in Norwegian and foreign companies that were purchased while in the country may be payable to Norway.
This is the aim of the new exit tax, which will ensure more people pay exit tax and that it isn't deferred indefinitely.
Your final salary in Norway will also likely be taxed. Say you leave Norway in May, and your paycheck for May arrives in June, tax to Norway will be deducted from your salary. Some bonuses can also be taxed after you have left Norway.
As you will receive a tax return after leaving Norway, you may also need to pay back taxes if you haven't paid enough the previous year.
What to do if you think you might pay taxes to Norway after moving
The first port of call would be to reach out to the Norwegian Tax Administration and explain your situation.
From there, they will be able to consult you further about whether you will have any tax liabilities when moving from the country.
Comments
See Also
A new exit tax is in the works that will tax those who have made gains of more than 500,000 kroner on shares if they decide to move from Norway.
Given the size of the gains, the tax may not be relevant for everyone who leaves the country. There is also no official tax on leaving the country.
READ ALSO: What we know so far about Norway's plans for an exit tax
However, there are still some other taxes you may be subject to if you leave Norway. Even if you report leaving Norway, that doesn't mean that potential tax liabilities to the country cease.
You will get a tax return from Norway as long as you are a tax resident of the country. This means that in many cases, you will receive a tax return for the year you left Norway, which will arrive after you have left the country.
For example, if you leave in 2024, you will receive a tax return in 2025.
The Norwegian Tax Administration's website has plenty of guides that explain the global tax liability to Norway, how to tell when your tax liability ceases, and whether you will have a tax liability to Norway after moving.
Property
You may need to pay property-related taxes when you decide to leave Norway. These taxes will likely be paid before you leave Norway but after you decide to leave.
Gains and losses on property are taxable or tax deductible. If you sell the house within a year of purchasing it, this will appear on your tax return and may mean that tax needs to be paid to Norway.
If you've owned the house for more than a year after the sale, you don't need to worry about a tax bill.
Should you decide to keep your property in Norway and rent it out while you live outside the country, rental income can be taxed as income that must be paid to Norway. Furthermore, you may be liable for municipal property tax.
The profit on renting out residential property is taxed at a rate of 22 percent.
Wealth tax
While you are still considered a tax resident of Norway, meaning that you have spent 183 days in any 12-month period or 270 days in aggregate in any 36-month period in the country, you may also be liable for wealth tax.
The tax rate ranges between 1 and 1.1 percent of one's net wealth above 1.7 million kroner (or double that for married couples).
The wealth applies to net wealth, so is minus any debts such as mortgages. The tax has proved controversial and has been linked to an exodus of wealth from Norway.
READ ALSO: Why Norway’s controversial wealth tax isn’t going anywhere for now
Other income and potential taxes
Gains made on shares and equity certificates in Norwegian and foreign companies that were purchased while in the country may be payable to Norway.
This is the aim of the new exit tax, which will ensure more people pay exit tax and that it isn't deferred indefinitely.
Your final salary in Norway will also likely be taxed. Say you leave Norway in May, and your paycheck for May arrives in June, tax to Norway will be deducted from your salary. Some bonuses can also be taxed after you have left Norway.
As you will receive a tax return after leaving Norway, you may also need to pay back taxes if you haven't paid enough the previous year.
What to do if you think you might pay taxes to Norway after moving
The first port of call would be to reach out to the Norwegian Tax Administration and explain your situation.
From there, they will be able to consult you further about whether you will have any tax liabilities when moving from the country.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.