Taxable value of residential properties
If you own a residential property at the end of the income year, it must be listed with a taxable value in your tax return. The taxable value is calculated on the basis of a calculated or proven market value.
Here you’ll find information about what ‘taxable value’ is and what you need to do if anything is missing or needs changing.
Important information
Taxable value of primary dwellings
The taxable value is set to 25 percent of the calculated or proven market value up to NOK 10 million, and then to 70 percent of any amount exceeding NOK 10 million.
Taxable value of secondary dwellings
The taxable value is 100 percent of the calculated or proven market value.
- A primary dwelling is the residential property that you own and use as your permanent home. Generally, it is the residential property where you have your address registered in the National Population Register at the end of the year. You can only have one primary dwelling.
- A secondary dwelling is a residential property that you own that is not your permanent residential property at the end of the income year. For example: Rental properties, commuter properties, and residential properties that are used as holiday homes are secondary dwellings.
- A residential property that you’ve moved out of before the start of the income year due to a breakup is also considered a secondary dwelling.
- A residential property can be the primary dwelling of one owner, but the secondary dwelling for another owner. For example: A residential property is owned by a child and their parents together. Only the child lives in the residential property. The child’s ownership share in the residential property will be calculated according to the rules for primary dwellings, while the parents’ ownership share will be calculated according to the rules for secondary dwellings.
The taxable value is a given percent of the estimated market value. The calculated market value for your residential property is based on information from Statistics Norway (SSB) on the sale of residential properties. Location, size, year of construction and type of housing are all taken into consideration.
You can find the taxable value yourself
Use our residential property calculator.
The rates
The rates for the taxable value of primary and secondary dwellings.
Example:
If the residential property’s value is NOK 4,000,000, its taxable value is NOK 1,000,000.
25 percent of NOK 4,000,000 = NOK 1,000,000.
If the residential property’s value is NOK 15,000,000, its taxable value is NOK 6,000,000.
25 percent of NOK 10,000,000 is NOK 2,500,000.
+70 percent of NOK 5,000,000 is NOK 3,500,000 = NOK 6,000,000.
Example:
If the residential property’s market value is NOK 4,500,000, its taxable value is NOK 4,500,000.
If the residential property’s market value is NOK 12,000,000, its taxable value is NOK 12,000,000.
Specific information if you own a
- primary dwelling
- secondary dwelling
- secondary dwelling that is used as a holiday home
- residential property that has no or has the incorrect market or taxable value
- residential property that is not included in the tax return
What you need to do
The calculated market value is calculated based on information about the property type, year of construction, and primary area. In most cases, the calculated market value and taxable value will be pre-filled in the tax return.
You must check if the following information is correct:
- whether the property is listed as a primary or secondary dwelling
- property type (detached house, apartment and small house)
- year of construction
- primary area - see how to measure the primary area
You must also check whether your residential property has been included in the tax return and that your ownership share is correct.
- If the tax return is pre-filled with incorrect information about your ownership share, you must log in to the tax return and correct it.
- If the ownership share is not registered, you must prove the ownership.
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If the residential property is not included in the tax return, or if information is missing or incorrect, you must log in and make the necessary corrections and add any missing information.
It’s important that all owners state the same and correct information about the residential property in the tax return.
Read about what to do if the market value and taxable value are too high.
No buildings on the property
If the residential property has been demolished and there is no longer a building on the property, you must change the property type in the tax return to plot of land. You must then state the market value and taxable value of the plot of land.
The taxable value of your residential property as listed in the tax deduction card is a provisional calculation to ensure that the tax you pay is as accurate as possible in the coming income year.
If you believe that the stated taxable value is incorrect and that the error will affect the deducted tax, you can change this and order a new tax deduction card.
Enter the taxable value you believe to be correct. Read more about taxable value in the tax deduction card.
Please note that the changes you make to your tax deduction card will only apply to this year’s tax deduction card, and that it will not be pre-filled in your tax return. This means that you must also make the changes in your tax return.
If the market value and the taxable value are too high
We calculate the market value for your residential property based on information from Statistics Norway (SSB) on the sale of residential properties. Location, size, year of construction and type of housing are all taken into consideration.
If the information about the residential property is incorrect, this will affect the calculated market value. You can change the information in your tax return yourself. The market value and taxable value will be recalculated based on the changes you’ve made to the information.
You must log in and check your tax return to see if the information about your residential property is correct:
- property type (detached house, apartment and small house)
- year of construction
- primary area
You must also check that the residential property is correctly listed as your primary or secondary dwelling.
Read more about property type, year of construction, and primary area.
The market value is still too high
If the information about the residential property is correct but the market value is still too high, you can request that the residential property be valued at a proven market value.
You must enter the proven market value and update your tax return yourself.
The proof must be dated after 1 July in the income year for which you are claiming a reduction.
The person who valued or gave an estimated value on your residential property must have inspected the property both inside and outside.
Valid proof:
- a valuation from a qualified valuer, or
- a valuation by an estate agent who is familiar with the district in which the residential property is located, or
- observable market value - the price for which the property or a similar property in the same area has been sold. Proof of the observed market value could be a purchase contract or a similar document stating the sales price. By a similar residential property, we mean a building with a similar floor plan, size, standard, view, and light and noise conditions. Referring to a general market value of residential properties in the area is not sufficient.
The proven market value must include any share of joint debt the property may have at the time of the sale.
If you request that the residential property be valued according to the proven market value
The documented market value applies to the year in which you request the reduction in taxable value in the tax return.
For the five coming years, you’ll be automatically granted a reduction in taxable value with the same percentage-based reduction as was calculated the year in which you proved the market value. The percentage reduction is calculated based on the difference between the calculated market value and the proven market value.
After this five-year period, the residential property’s market value is recalculated based in information about its location, property type, year of construction, and primary area.
If you believe that the calculated market value is too high, you must again prove the market value and request that the residential property be valued at a proven market value.
For the current income year:
The calculated market value of your primary dwelling is NOK 4,000,000. You can prove that the market value is NOK 3,600,000.
The market value of NOK 3,600,000 is used as the basis in the income year. The taxable value is NOK 900,000
(3,600,000 *25/100 = 900,000)
For the next five years:
To calculate the next year’s reduction in calculated market value, and thereby the taxable value, you must find the proportional reduction to the calculated market value. This calculation is automatic in your tax return. You do not have to do anything.
The calculated market value was reduced by NOK 400,000.
(4,000,000 – 3,600,000 = 400,000). This means that the calculated market value was reduced by 10 percent.
(400,000/4,000,000 x 100 = 10 percent).
The calculated market value will then be reduced by 10 percent (proportional reduction) for assessment purposes in the next five years.
If the calculated market value for the next income year is NOK 4,200,000, this value will then be reduced by 10 percent, that is, a reduction of NOK 420,000.
The calculated market value to be used as the basis will then be:
NOK 3,780,000 (4,200,000 – 420,000 = 3,780,000).
The taxable value will be NOK 945,000
(3,780,000 *25/100 = 945,000)
Special information if you have
Change of ownership
The judicial registration ensures legal protection for you as the owner. This means that no one can place an attachment on or sell your property without a legal basis. You’re not obliged to register the property.
If you register a change of ownership with the Norwegian Mapping Authority, the Tax Administration will automatically receive information about the 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 do not register the change of ownership, you must send us proof of the ownership.
The proof must include the following information:
- which property you’re referring to
- from which date the 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.
If you’ve purchased a limited liability housing company apartment, you must send proof of the ownership to the Tax Administration. The ownership in a limited liability housing company apartment is not registered with the Norwegian Mapping Authority.
The proof must include the following information:
- which property you’re referring to
- from which date the 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.
If you for health-related reasons are no longer able to live in your residential property, the residential property may still be considered your primary dwelling. This presupposes that the property has not been rented out for payment.
If your residential property has been entered as a secondary dwelling in the tax return by mistake, you must log in and change the tax return and submit it with the information that the residential property is your primary dwelling.
If you’re a student and own a residential property at your place of study, and if you’re to be considered resident with your parents pursuant to the National Population Register rules, the residential property may be considered a primary dwelling.
If your work leads you to spend all or parts of the year abroad, but you’re not considered emigrated, your residential property in Norway can be considered your primary dwelling. This will apply for as long as you’re correctly registered as living in the residential property at the end of the year.
It presupposes that the residential property is not rented out and that you can substantiate or prove that you’re prevented from using the residential property in Norway as your home due to circumstances beyond your control.
- If you own a residential property that you use as a holiday home, it must be taxed as a secondary dwelling.
The building type stated in the cadastre forms the basis for assessing the taxable value.
The cadastre is Norway’s official register of real property. The municipalities update the cadastre.
When the municipality registers the building type in the cadastre, it must be done within the framework of what the building is permitted to be used for. In the cadastre, the municipality may have registered that the residential property is “used as a holiday home". The use of the property has no effect on the liability for net wealth tax.
The residential property must be taxed according to the rules for secondary dwellings even if it’s used as a holiday home.
Example: If you use a residential property on the south coast of Norway as a holiday home, the property is liable for net wealth tax as a secondary dwelling, and not as a holiday home.
- A residential property that is no longer suitable for year-round residence but is used as a holiday home must be taxed as a holiday home.
A specific assessment must be made of whether the residential property is suitable for year-round residence.
Example: No plumbing, electricity, sewage, access to the property and the property’s general standard, are factors in the assessment indicating that the residential property is not suitable for year-round use.
A residential property that is used as a holiday home must be taxed as a secondary dwelling. If you’re going to sell or rent out the residential property, the rules for the sale or rental of a holiday home apply.
When you own a residential property on leased land, you’ll be assessed net wealth tax as if you were the owner of the land. The taxable value of the property is calculated based in the rules for residential properties, and the plot of land will not have a taxable value in its own right.
In your tax return, you can claim a deduction for debt for your obligation to pay annual ground rent.
The deduction for debt is found by multiplying the annual ground rent by a capitalisation factor which is 10. The amount must be added as part of your debt in your tax return.
You pay an annual ground rent of NOK 10,000 for your property.
In the tax return, you can claim deduction for debt for NOK 100,000 (10,000 x 10 = 100,000).
There are separate rules for residential properties under construction.
The residential property be valued according to how far you’ve come in the construction process. You must calculate the calculated market value as if construction of the residential property was complete. The calculated market value must then be set to a proportional share of the value of the completed residential property.
A residential property under construction will generally be considered a secondary dwelling.
A residential property under construction must be considered a primary dwelling if you plan to move into the residential property once it’s completed and if you do not have another residential property that is subject to net wealth tax as a primary dwelling.
You do not own a residential property, and you start building a detached property with a primary area of 100 square metres in the spring of 2024. You plan to move into the residential property in 2025.
At the end of 2024, you estimate that the construction is 60 percent completed.
You must use the residential property calculator 2024 to calculate the estimated market value of the residential property as if it was completed in 2024.
In the calculator you enter:
- 2024 as the year of construction
- detached house as the property type
- 100 square metres as the primary area
The shows an estimated market value of NOK 4,000,000.
Since the residential property was 60 percent completed at the end of the year, you use an estimated calculated market value of NOK 2,400,000 as your basis. (4,000,000 x 60% = 2,400,000).
The residential property will be your primary dwelling, and you enter 25 percent of this value in your tax return, that is, NOK 600,000 (2,400,000 x 25% = 600,000).
If the residential property is your secondary dwelling, the taxable value is 100 percent. In the example above, the taxable value would be NOK 2,400,000.
Additional properties are properties that belong to another property. They do not have a taxable value in their own right. The properties are usually side by side and share a property limit. Additional properties must have a subservient function for the other property, and the property are usually sold together.
In the tax return, you must register the property as additional property, and you must select which property it belongs to.
You own a residential property and a garage. The property has one cadastral unit number and property unit number and the garage has another. If the garage has a subservient function for the residential property, the garage can be registered as an additional property to the residential property.
Subservient function
A subservient function means that the property belongs with another property and covers a need that the main property does not.
The ownership and ownership share must be the same for both properties.
If the information in the tax return is incorrect, you can log in to the tax return and change the property type.
If your parking space has its own cadastral unit number and property unit number and a subservient function for the residential property, the parking space does not have a taxable value in its own right.
In the tax return, you can register the parking space as an additional property to the residential property. An additional property does not have a taxable value in its own right.
If the parking space does not have a subservient function, it must have a taxable value. The taxable value is set to 80 percent of the property’s purchase price or market value.
You need a parking space for your car and purchase a parking space in the housing association where you own a residential property. You use the parking space for your car, and the parking space then has a subservient function for the car. The parking space does not have a taxable value in its own right.
In the tax return, you can register the parking space as an additional property to the residential property.
You need a parking space for your car and purchase a parking space some way away from your residential property. The parking space is not naturally connected to your property, and it will not be included with the residential property in the event of a sale.
In the tax return, the parking space must have the property type "Other real property" and its own taxable value. The taxable value is set to 80 percent of the purchase price or market value.
You can log in to your tax return and change the information about the parking space.
When your residential property has been damaged or destroyed, resulting in reduced market value, it may affect the taxable value.
A multi-unit building is a property with five or more housing units that are not sub-divided into sections.
Here you’ll find information about multi-unit buildings and how to calculate their taxable value.
If the calculated market value of your residential property is too high and the sale of the property is regulated, you must be able to provide proof of the value by way of regulations or other documentation confirming that the sale is regulated.
You can log in to your tax return and change the value of the residential property.
If the area in the building is used for both housing and commercial purposes, it must be considered whether to assess net wealth tax for a residential property or a commercial property.
If the area used for housing is more than half of the building’s area, then the whole property must be valued using the rules for residential properties.
Any primary area in the commercial part must be included in the primary area for the residential property. Rooms typically suitable for permanent residence, and this means it will be defined as primary area, are shops, hair salons, home offices and other office areas are examples of.
However, areas that are solely used for storage purposes or similar will normally be considered to be secondary areas and should not be included in the basis for calculating your wealth.
If the commercial area is largest, then the property is to be valued as a commercial property.
You can log in to your tax return and change the information about the property.
A residential property must not be considered a commercial property even if the rental is so extensive that it is considered commercial activity or part of commercial activity.
A residential property must always be valued pursuant to the rules for residential properties.
If the information in the tax return is incorrect, you can log in to the tax return and change the information about the residential property.
If you own two or more residential units in a building, the section in which you have your address registered in the National Population Register will be your primary dwelling, and the other units are your secondary dwellings.
If you use more than one residential unit as your residential property, you may, under some conditions, have them assessed as one primary dwelling for net wealth tax purposes.
The conditions are as follows:
- the units are presented as and used as one residential property, and
- one section has a subservient function to the other
- the units must have internal access
- in the event of a sale, the units will usually be sold together
A unit that in its own right meets the conditions to be an independent and complete residential property will not be considered as having a subservient function. This applies even if both units are actually used by the same person.
The ownership and ownership share must be the same for both units.
Generally, you must send an application to the municipality to get permission for joining two units.
You can log in to your tax return and make changes.
If we ask you to, you must be able to prove that you’re using the units as one residential property, and that these are presented as one residential property.
If you’re moving to another Nordic country, your residential property may still be considered your primary dwelling. It is a requirement that you’re not considered emigrated from Norway, and your residential property in Norway cannot be rented out.
If your residential property has been entered as a secondary dwelling in your tax return by mistake, you can log in to the tax return and change the property type to primary dwelling.