Norway Property Tax for Foreign Owners: Eiendomsskatt and Formuesskatt Explained

Norwegian property ownership triggers two separate tax obligations: a municipal property tax (eiendomsskatt) set independently by each municipality, and a national wealth tax (formuesskatt) levied on net taxable assets above a threshold. Both are ongoing annual costs. Neither requires you to sell a property or receive rental income to become liable. Foreign buyers often plan carefully for the upfront dokumentavgift but overlook what happens on the tax return every year after.

Municipal Property Tax (Eiendomsskatt)

Norway's municipalities have discretionary power to levy — or not levy — a local property tax. The resulting variation across the country is significant.

The tax base is calculated from Skatteetaten's estimated market value, discounted to a municipal valuation base, then reduced further by any standard deduction (bunnfradrag) the municipality offers.

Oslo

Oslo has structured its property tax to effectively exempt most ordinary residential properties. For 2026, the rate is set at 1.7‰ (1.7 per mille) with a bunnfradrag of up to NOK 4,900,000 per independent housing unit. Oslo uses 70% of estimated market value as the residential tax base before the bunnfradrag, so homes below approximately NOK 7,250,000 are likely to receive no 2026 property-tax bill. Above that threshold, the tax applies only to the assessed value exceeding the deduction.

For a 7,000,000 NOK Oslo apartment, the 70% residential tax base is approximately NOK 4,900,000, so it is likely to fall at the bunnfradrag and receive no 2026 property-tax bill.

Bergen

Bergen applies a rate of 2.6‰ to residential properties, with a basic deduction of NOK 750,000 per approved housing unit. At this rate, a 5,000,000 NOK property in Bergen generates a higher annual tax bill than the equivalent Oslo property, because Bergen's deduction is far lower.

Trondheim

Trondheim levies a rate of 2.65‰ against its municipal valuation base, with a basic deduction of NOK 700,000 per independent unit. Properties in Trondheim's gentrifying districts — Lademoen, Nydalen — where prices have risen sharply, will see correspondingly higher assessed valuations.

Stavanger

Stavanger applies a flat rate of 1.0‰ but offers no basic deduction, meaning every NOK of the assessed valuation is taxable from the first krone. This structure means that even moderately priced properties in Stavanger carry an annual tax liability, making Stavanger comparatively less generous than Oslo for homeowners despite lower headline property prices.

National Wealth Tax (Formuesskatt)

If you are a tax resident in Norway, Skatteetaten levies an annual wealth tax on your net taxable wealth once it exceeds 1,700,000 NOK for single taxpayers (or 3,400,000 NOK for married couples filing jointly). Real estate is counted as part of this taxable wealth base.

However, the way your property's wealth value is assessed depends critically on whether it is your primary residence or a secondary property.

Primary Residence (Primærbolig)

Your primary home receives a substantial valuation discount. For 2026, the assessed wealth value (formuesverdi) is set at 25% of the property's calculated market value for the portion up to a threshold (currently 10,000,000 NOK, with proposals to raise it), and 70% of the value above that threshold. This discount exists specifically to encourage owner-occupied homeownership without penalizing middle-class households.

In practice, for most expat buyers purchasing a primary residence under 10,000,000 NOK: only 25% of the property's market value enters the wealth tax calculation. If your total taxable wealth (property share plus financial assets minus debts) remains below 1,700,000 NOK after this discount, you owe no wealth tax at all.

If Skatteetaten's automated model overestimates your property's value, you have a statutory right to appeal and cap the assessed formuesverdi at a maximum of 25% of its documented fair market value, supported by an independent appraisal or agent valuation.

Secondary Residence (Sekundærbolig)

Secondary properties — rental apartments, holiday homes, investment units — receive no valuation discount. The assessed wealth value is set at 100% of calculated market value in 2026. This significantly increases your annual wealth tax exposure if you own a property you do not live in, and it is a material cost that buy-to-let investors need to factor into rental yield calculations.

What Foreign Non-Residents Owe

If you purchase Norwegian property but do not become a Norwegian tax resident, the picture changes. Wealth-tax treatment of Norwegian property depends on Norwegian rules and any applicable double-taxation treaty. Do not determine tax residence from a single 183-day test; if Norway becomes your tax residence, your global net wealth may form part of the formuesskatt assessment.

Eiendomsskatt, by contrast, applies to the property itself regardless of the owner's residency status. If you own a property in Bergen and live elsewhere, Bergen municipality still sends you a property tax bill.

Practical Impact on Your Ownership Budget

When budgeting for ongoing property ownership in Norway, combine:

1. Municipal service charges (kommunale avgifter) — waste collection, water, sewage — which average several thousand NOK per year depending on municipality and property size
2. The municipality-specific eiendomsskatt rate and deduction
3. Your net formuesskatt exposure based on total wealth and residency status
4. Felleskostnader if you own a borettslag unit (includes maintenance contributions and your share of fellesgjeld interest)

The wide variation in municipal property tax between cities means a Stavanger property and an Oslo property at the same price point can generate meaningfully different annual holding costs. This is worth modelling explicitly before you enter the market in a specific city.

The Buying Property in Norway — Expat Guide includes a full breakdown of ongoing tax obligations, ownership structures, and how residency status affects your annual liability.

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