Taxes and Tax Schemes in Norway | What You Need to Know in 2025

Norway, a Scandinavian country known for its high standard of living, strong welfare system, and oil-rich economy, operates a comprehensive tax system that affects both residents and non-residents. Located in Northern Europe, Norway combines a robust economy with a high quality of life, making it an attractive destination for international professionals and businesses.

Norway's economy, driven by sectors like oil and gas, shipping, and technology, has shown resilience despite global economic challenges. The country's tax system is designed to support social welfare while maintaining competitiveness in the global market. Recent reforms have focused on simplifying tax procedures and enhancing digital tax filing for foreign residents.

The expat community in Norway is growing, with many professionals drawn to sectors like energy, technology, and finance. The tax system, while detailed, offers various benefits and deductions that can significantly impact an expat's financial planning.

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Norwegian Income Tax

Norway employs a progressive income tax system with rates ranging from 22% to 47.4%. Resident taxpayers are subject to taxation on their worldwide income, while non-residents are taxed only on Norway-sourced income. The system includes social security contributions, which fund public services like healthcare and education.

Tax residents face the following income tax brackets (as of 2025):

• Base Tax Rate: 22% (applies to all income)
• Progressive Tax Rate:
  • Up to NOK 198,350: 0%
  • NOK 198,351 to NOK 279,150: 1.7%
  • NOK 279,151 to NOK 642,950: 4.0%
  • NOK 642,951 to NOK 926,800: 13.5%
  • NOK 926,801 to NOK 1,500,000: 16.5%
  • Over NOK 1,500,000: 17.5%

Additionally, social security contributions are generally calculated at around 8.2% of gross income, bringing the effective maximum tax rate to approximately 47.4%.

If you want to have a better understanding of the taxes you should pay on personal income in Norway, you can use the personal tax calculator in the Taxation section of the Norway page.‍

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Norwegian Tax on Overseas Income‍

Norway's treatment of foreign income depends on residency status. The country recognizes two main categories of taxpayers:

1. Residents: Taxed on worldwide income
2. Non-residents: Taxed only on Norway-sourced income

This system particularly benefits non-residents, who are only taxed on income earned within Norway. However, residents must declare and pay taxes on their worldwide income, with potential relief through double taxation treaties.‍

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Norwegian Tax on Investments

‍Investment income in Norway receives specific tax treatment. Dividends and capital gains from listed stocks are typically taxed at a flat rate of 22%. The system includes:

• Dividends: Taxed at 22%
• Capital Gains: Taxed at 22%
• Interest Income: Taxed at 22%
• Rental Income: Taxed at progressive income tax rates, with deductions for expenses

Real estate investments face both federal and municipal taxes, with potential deductions for depreciation, maintenance, and other expenses.‍

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Norwegian Corporate Taxation‍

Corporate tax in Norway comprises several components:

• Federal Corporate Tax: 22%
• Value Added Tax (VAT): 25% standard rate, with reduced rates for certain goods and services
• Municipal Business Tax: Varies by municipality, typically around 1%

The effective corporate tax rate typically ranges from 22% to 23%, depending on the company's location. Small and medium-sized enterprises may qualify for certain tax reliefs and incentives.

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‍Special Tax Regimes‍

Norway offers several special tax arrangements beneficial to international professionals and businesses:

1. Research and Development (R&D) Incentives: Tax credits and deductions for companies engaged in R&D activities.
2. Foreign Income Tax Relief: Available to prevent double taxation on overseas income for residents.
3. Special Tax Benefits for Key Workers: Tax incentives for qualified foreign professionals working in Norwegian companies.
4. Investment Allowances: Deductions for investments in certain regions or sectors.

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Regional Comparison‍‍

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Tax Planning for Norway‍

Effective tax planning in Norway requires attention to several key areas:

1. Residency Status Management: Strategic planning of residency status can optimize tax treatment of foreign income.
2. Investment Strategy: Utilizing tax-advantaged accounts and long-term holding periods can optimize investment income.
3. Documentation: Maintaining clear records of overseas assets and income sources is crucial.
4. Professional Advice: Engaging with tax professionals to navigate the complexities of the Norwegian tax system.

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