Tax Benefits in Norway

Hey,

The most used tax benefit here is to buy a property with a loan. The property real value being much more than its tax value, you will save the "formue" tax and you will be able to deduct interest paid from your revenues. If you rent less than 40% of the place where you live, you can get tax free rental revenues in addition.

Hi AuNordDuMonde,
                 You mean like if i have a housing loan i should be able to save some tax??. i dont get this "The property real value being much more than its tax value". Could you elaborate on this ?

Sure - let's take an example- you have 2 million NOK in your account, on which you have to pay "formue" tax. You buy a property with a market price of 4 million. you will have then to borrow 2 million. As the "tax value" of the property is based on an old valuation, usually from mid 80's, it's tax value will only be 2M NOK. As you have a debt of 2M, you have then 0 equity from a tax perspective, which makes you pay 0 tax on formue. in addition, you can rent up to 40% of the property tax free while you can deduct from tax the interest of the loan. All in all, the tax benefits are paying for your investment.

thanks!!

Is it possible to avial tax benefit on a overseas loan ?

I think you can if it is for a house. I'm not sure though.

Yes, overseas loan also offer the possibility for the interests to be deducted from taxes and the "formue" being reduced. Note though that overseas loans and bank accounts must be reported to tax authorities

I jus read through the rules and regulations. Some countries have a treaty with norway to avoid double taxation, so in such cases the tax advantage for the loan will be limited.

I am not a tax lawyer but I am coming from a country with a tax treaty with Norway and I am able to deduct the interests from my loan as well as the value of the loan from the formue tax. I pay all my taxes in Norway though and have no revenue from my home country

Does anyone know a good tax lawyer/accountant to file my taxes for the first year. Someone who could educate me once so that i can start filing it myself later

I used to do tax advices professionally. This is not my focus in business these days, but I can give you a crash course