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The rules for renting out your home on Airbnb in Norway

Robin-Ivan Capar
Robin-Ivan Capar - [email protected]
The rules for renting out your home on Airbnb in Norway
Short-term rentals are a decent way to earn some money from an empty apartment or house in Norway, especially when you're away on holiday or just gone for a few days. Photo by Emily Wang on Unsplash

Renting out your home in Norway when you're not using it can be a good way to generate some extra income. However, it's important to understand the relevant rules.

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Life in Norway can be expensive. Many people look for ways to boost their income, and renting out parts of their homes has become a widespread strategy.

In all Norwegian cities, you'll find homes with a room, basement, ground floor, or an attached unit on the market for rent.

READ MORE: Five common rental scams in Norway and how to avoid them

This practice has become so common that it's often advertised as a feature when selling a house - just look for properties with a "utleiedel" (rental unit) on Finn.no.

There's a sort of "Norwegian dream" where you buy a house, live on one floor, and use your rental unit to help pay off your mortgage (although this more often falls in the category of long-term rentals). This is a simplified view, and it's important to remember that any repairs or maintenance will eat into your rental income.

Despite associated costs, short-term rentals remain a decent way to earn some money from an empty apartment or house, especially when you're away on holiday or just gone for a few days.

In such situations, people in Norway often turn to platforms like Airbnb, which falls under Norwegian short-term home rental regulations.

The tax framework for short-term home rentals in Norway

Renting out your home on a short-term basis involves several tax implications.

In Norway, rental income up to 10,000 kroner from short-term rentals is tax-free, provided each rental period is less than 30 days. This 30-day limit applies to each rental relationship individually.

However, for rental income exceeding 10,000 kroner, 85 percent of the amount above this threshold is considered taxable income.

For example, if your total rental income from Airbnb in a year is 40,000 kroner, you first subtract the tax-free amount of 10,000 kroner, leaving a remaining taxable amount of 30,000 kroner. Of this remaining amount, 85 percent, which is 25,500 kroner, will be counted as taxable income.

The applicable tax rate for the income years 2023 and 2024 is 22 percent. Therefore, in this example, the total tax due would be 22 percent of 25,500 kroner, which amounts to 5,610 kroner.

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Renting out a room tax-free - under certain conditions

You can rent out a portion of your home completely tax-free under certain conditions.

If the area you rent out is smaller than the space you occupy and the tenancy lasts for at least 30 days, then the rental income is not taxable.

For instance, if you rent out a room in the apartment where you live, you won't need to pay tax on that income.

The same rule applies if you rent out a basement flat in a large house. For these longer term rentals Norwegians typically turn to Hybel or Finn.no. 

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Limits and restrictions

Recent changes in the law limited short-term rentals in self-owned apartments in sectioned housing to no more than 90 days a year.

This type of property ownership involves individually owned units within a building, with communal areas jointly owned and managed by a homeowner's association (this is different to a housing association though).

A short-term rental is defined as renting out a property daily or weekly for up to 30 consecutive days.

The 90-day limit can be modified in the articles of association to be set between 60 and 120 days, requiring a two-thirds majority vote at the homeowner's association's annual meeting.

Different regulations apply to housing associations. A provision in the Norwegian Housing Associations Act allows unit owners to rent out their homes for up to 30 days a year without board approval.

READ MORE: The key things you need to know about Norwegian housing associations

Essentially, you will need to check which kind of housing arrangement you live under, freehold, housing action sectioned housing and the rules that apply to you. 

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Renting on Airbnb: Fees and tips

Due to its large user base, many homeowners in Norway turn to Airbnb, the world's largest platform for renting private homes, for short-term rentals.

According to Airbnb, most hosts pay a fixed service fee of 3 percent of the booking subtotal, which includes the nightly rate and any optional fees (like cleaning).

This subtotal does not include Airbnb's fees and taxes. Guests also pay a service fee of approximately 14 percent of the booking subtotal, which is included in the overall amount the guest pays.

READ MORE: Landlord or tenant: Who pays which costs in Norway?

Your earnings on the platform depend on what you're renting out, the location, and the rental duration.

However, if you have doubts about pricing, it's a good idea to check out what similar properties in your area are listed on Airbnb and price your property accordingly.

Airbnb will also provide an estimate to help you determine a competitive rate. It's generally considered a good strategy to start with a slightly lower price to attract initial bookings and gradually increase it as you gain positive reviews.

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