Salaries in Norway
Salaries are quite high in Norway in comparison with many other countries. However, by the same token, the cost of living is also quite high.
- In a comparison of average salaries between European countries Norway ranks among the top 10: Wikipedia’s List of European countries by average wage
- For more information on salaries in Norway: Statistics Norway’s website > Earnings of all employees
- For more information about the cost of living in Norway see Numbeo
Taxation in Norway
In general, the obligation to pay tax in Norway follows from Norwegian tax rules. Norway’s right to require tax payment from you may be limited by a tax treaty between Norway and your home country.
For information about the level of taxation in Norway: Nordisk eTax
For more information about taxation in Norway: Taxnorway.no (in Norwegian)
For more information about tax treaties to avoid double taxation see: General tax conventions between Norway and other states (Governement.no)
For a more in depth walk through of taxation rules for foreign workers in Norway see: Taxnorway.no > the guide for foreign workers who want to start work in Norway
If you receive a salary from a Norwegian employer you are obliged to pay tax on your earnings in Norway. If your stay in Norway exceeds 183 days within a 12-month period or 270 days within a 36-month period, you are considered to be a tax resident and you will be liable to pay tax in Norway on all your capital and income in accordance with Norwegian tax regulations.
Certain exceptions may apply if your home country has a tax treaty with Norway and specific conditions have been met:
- For more information about tax treaties see: Government.no > General tax conventions between Norway and other states.
- For more information about tax liability on income and specific conditions relating to this see: Taxnorway.no >Taxable income
Please note that tax resident status is not necessarily identical to resident status as stipulated in the National Insurance Act, and you may therefore not be fully covered under the Norwegian National Insurance Scheme even if you do pay taxes in Norway.
Check which taxes and duties in Norway apply.
If you receive a salary from a non-Norwegian employer during the period of your stay in Norway, you will receive a tax deduction card for income earned while in Norway. Certain exceptions may apply if your home country has a tax treaty with Norway and specific conditions have been met.
Many researchers conducting a stay at a Norwegian host institution are not formally employed in Norway or in their home country. Such research stays may be financed by means of private funds, mobility grants, endowments or the like.
- The general rule is that you will have to pay tax in Norway during your stay. Although such funds are not a salary, they are still considered income by the tax authorities and are therefore subject to taxation.
- In certain cases, however, the host institution or funder of the grant/endowment may be exempted from withholding tax if you can provide receipts documenting that the funds have been used to cover additional expenses related to moving to and living in Norway. Check with your host institution/funder to see if this applies.
- Please note that in many cases you are not paying a National Insurance contribution and are therefore not covered under the Norwegian National Insurance Scheme.
Norwegian employers are required to have a tax deduction card for each employee in order to withhold tax from salary payments. As a general rule, you are responsible for procuring your own tax deduction card. If you have not yet obtained one, your employer is required to withhold 50 per cent of your salary payment.
- For more information about taxes and the various ways to obtain a tax deduction card see: Taxnorway.no > Tax deduction cards. Pay attention to the fact that If you are a foreign employee, you need to visit a tax office for an ID check before you can apply for a tax deduction card:
- There are many was to obtain a tax deduction card and everyone of them are explained at The Norwegian Tax Administration - Order a tax deduction card
- If you have been employed in Norway previously, you are only required to submit an application to your local tax administration office and enclose a new employment agreement.
- Remember to provide the Norwegian Tax Administration with theaddress where you would like all post sent.
- The Norwegian national identity number is used in many contexts in Norway, including in communication with public authorities, banks and telephone service providers and for a variety of subscription services. You should therefore apply for a Norwegian national identity number shortly after arriving in Norway.
- National identity numbers are issued by the Norwegian Tax Administration to all persons residing in Norway. Foreigners intending to stay in Norway for less than six months are issued a temporary national identity number (D number). Your national identity number or D number will appear on your tax deduction card.
- Citizens of non-EU/EEA countries are required to apply for a residence permit and appear in person at a police station. You must apply for a tax deduction card and may be required to report your move to Norway and change of postal address.
- Citizens of EU/EEA countries planning to stay in Norway for longer than three months are required to register with the police. You must apply for a tax deduction card and may be required to report your move to Norway and change of postal address..
- Citizens of Nordic countries must apply for a tax deduction card and may be required to report their move to Norway and change of postal address.
- For more information about D numbers and Norwegian national ID numbers see: [button type="link" link="http://www.skatteetaten.no/en/person/Tax-deduction-card-and-advance-tax…" xclass="external-link" target="_blank"]Taxnorway.no > National identity number or D number.[/button]
Tax deductions are to be entered in your tax return form. The most common tax deductions are:
- Personal allowance (automatic deduction);
- Parental allowance (foreldrefradrag) of NOK 25 000 for the first child, with an additional NOK 15 000 per child for subsequent children.
- Standard deduction for foreign employees of 10 per cent of your gross income, maximum NOK 40 000. Valid only during the first two years of residence in Norway. If you are married, both you and your partner must be eligible for the deduction or it will not be granted.
- Deductions for commuters (only for citizens of EU/EEA countries) cover additional expenses in connection with travel, subsistence and accommodation as a result of your stay outside your home country. It is not permitted to request both the deduction for commuters and the standard deduction.
- For more information see: Topic and deductions - The Norwegian Tax Administration
Remember to enter the standard deduction or deduction for commuters on your tax return form.
All individuals working in Norway receive a tax return form from the Norwegian Tax Administration in March/April. The tax return gives an overview of your income, deductions, assets and debts for the previous income year. It is your responsibility to confirm that all the details included in your tax return are correct.
- Please note that you must usually enter the standard deduction for foreign employees or the deduction for commuters in the tax return form yourself. If the information in the tax return is correct, you do not need to submit it. If you wish to change any information on your tax return, you must submit the updated form at the latest by 30 April.
For more information see: Taxnorway.no > Tax returns
Once the tax office has processed your tax return you will receive a tax settlement notice. It contains information about the income on which tax has been calculated, how much tax your employer has withheld and whether you have paid too much or too little tax. Remember to report any change of postal address to ensure that you receive your tax settlement notice.
- A tax calculator (choose language in right upper corner) is available at: Calculation of income taxes