Debt and interest on debt abroad

When you're a tax resident of Norway for tax purposes, you'll be entitled to a deduction for interest on debt you have abroad. The deduction will be limited if:

• you carry out or participate in activity abroad, and income from this activity isn't liable for tax in Norway under a tax treaty between Norway and the country in which the activity takes place
• you have real property abroad, and income from your property is not liable for tax in Norway under a tax treaty between Norway and the country in which the property is situated. Read more about property abroad

If you have claimed a deduction for interest on debt in the country in which the property is situated, you cannot claim a deduction for interest on debt in Norway at the same time.

If you're not a tax resident of Norway, you'll generally only be able to claim a deduction for interest on debt that is linked to real property in Norway or commercial activity that is taxable in Norway. If you reside in another EEA state, you can still claim a deduction for interest on debt if all or almost all (90 percent) of your total income is liable for tax in Norway. Read more about deductions

However, the deduction will be limited if you have income from real property or activity abroad which isn't liable for tax in Norway under a tax treaty. The deduction won't be limited if you own a residential property or holiday home in another EEA State, and the tax treaty between Norway and the country in which the property is situated stipulates that the income isn't taxable in Norway. 

If you've claimed a deduction for interest on debt in the country in which the property is situated, you won't be able to claim a deduction for interest on debt in Norway at the same time.

You cannot claim a deduction for debt rates while demanding a 10 percent standard deductions. As of 01.01.2019 (the tax return for 2019), the right to standard deductions is limited to foreign seafarers and shelf workers only.