Taxable value of plots of land and leased plots of land

If you own or lease a plot of land at the end of the income year, it must be listed with a taxable value in your tax return. Here you’ll find information about what you need to do if anything is missing or needs changing.

If you are a landowner and lease a plot of land to someone, special rules apply.

Taxable value

The taxable value for plots of land is 80 percent of either the cost price or of the market value. A new owner can continue using the previously assessed taxable value.

Specific information if you

  • own plots of land 
  • lease plots of land
  • are a landowner and lease plots of land to someone

What you need to do

Is there any information missing in the tax return?

You must log in to the tax return and add the information about the plot of land if this has not been pre-filled in your tax return.

If the taxable value is missing or is too high

You can change the tax return yourself and enter information about the market value. A valuation is not a requirement, but you must be able to explain how you arrived at the market value when we ask you. In the tax return, the taxable value is automatically calculated to 80 percent of the market value.

If the plot of land has a previously assessed taxable value, you can continue using this value. For example, you can continue using the previous owner’s taxable value.

If you have constructed a residential property or holiday home on the plot of land

If, during the year, you have constructed a residential property or holiday home on the plot of land, the property must no longer be assessed as a plot of land but as a residential property or holiday home. If the residential property or holiday home is not yet completed by the end of the year, there are special rules for residential properties and holiday homes under construction.

See information about the taxable value of:

You can claim a deduction in the tax return for your obligation to pay annual ground rent. This deduction reduces your taxable wealth. The deduction for debt is calculated by multiplying the annual ground rent by a capitalisation factor, which is 10 for the 2023 income year.

You enter the sum for the deduction for debt as part of your debt in the tax return.

Example: Calculation of deduction for debt
You pay an annual ground rent of NOK 10,000 for your plot of land. In the tax return, you can claim deduction for debt for NOK 100,000 (10,000 x 10 (capitalisation factor) = 100,000).

If there are buildings on the plot of land, the taxable value must be determined according to the rules that apply:

As the landowner, you’re not liable to pay net wealth tax on the value of the plot of land, but on the capitalised value of the right to annual ground rent. This value is calculated by multiplying the annual ground rent by a capitalisation factor, which is 10 for the 2023 income year. The amount must be added as part of your wealth.

You must log in to your tax return and enter the value of the capitalised ground rent.

You receive an annual ground rent of NOK 30,000. As the lessor, you must declare a taxable value tied to the right to annual ground rent. 

This is calculated by multiplying the annual ground rent by 10 (NOK 30,000 x 10 = 300,000). You must enter the amount of NOK 300,000 as wealth in the tax return. 

Check your tax return

You must check that the same plot of land is not listed with a taxable value in the tax return. If the entire property is leased, you must delete any taxable value that is listed for this property in the tax return.

However, if only part of the property is leased, the taxable value must be reduced proportionately.

Specific information if you have

If you own a holiday home as a jointly owned property on a leased plot of land, the deduction for debt will have been pre-filled if the jointly owned property has submitted information to the Tax Administration.

You must yourself increase the taxable value in the tax return if the addition for the plot of land has not been entered in the pre-filled taxable value. 

As a unit holder in a housing company that has a holiday home on a leased plot of land, the housing company must report your percentage of the deduction for debt and taxable value so this is pre-filled in your tax return.

As a rule, contracts for the lease of plots of land for commercial properties have a set time limit. As the lessee, you’ll not be considered to be the owner of the plot of land. The lessor (landowner) is liable for net wealth tax for 80 percent of the market value of the plot of land.

Change of ownership

Judicial registration gives legal protection to you as the owner. This means that no one can place an attachment on or sell your plot of land without a legal basis. You are not obliged to register the plot of land.

If you register a change of ownership with the Norwegian Mapping Authority, the Tax Administration will automatically receive information about registered ownership and can pre-fill the property in the correct owner’s tax return.

If you do not register the change of ownership

If you decide to not register the change of ownership, you must submit documents proving the ownership.

The proof must include the following information:  
  • which property  you are referring to
  • from which date the new ownership applies
  • the price that was paid for the property, if any 
  • the date and signature of all parties

You can submit the proof as soon as the sale or transfer has taken place. You can also log in and change the ownership and add proof in your tax return.