Tax when you move abroad

If you’re working abroad and you’re still tax resident in Norway, you must remember to:

• state the income in your tax return
• claim deductions/a reduction to your tax if you’re paying tax on the same income in Norway and the country you’re working in – avoid double taxation
• find out whether you’re still a member of the National Insurance Scheme. It’s the key to rights from NAV. You may be entitled to a voluntary membership in the National Insurance Scheme.

If you're going to live abroad and receive a pension/disability benefit from Norway, you must remember to:

• state the pension/disability benefit in your tax return
• claim deductions/a reduction to your tax if you’re paying tax on the same pension/disability benefit in Norway and the other country – avoid double taxation
• find out whether you’re still a member of the National Insurance Scheme. It’s the key to rights from NAV. You may be entitled to a voluntary membership in the National Insurance Scheme
• claim the right to pay withholding tax on pensions and disability benefits to Norway. Remember that withholding tax only applies to people who have emigrated for tax purposes.

If a pension or disability benefit is taxable in both Norway and the country where you live, it’s the country of residence that must ensure that the income is not taxed twice.

In some cases, students can choose whether to report a move or not.

You remain liable to pay tax to Norway until you emigrate for tax purposes. If you work alongside your studies, you must remember to inform us about your income in your Norwegian tax return. Remember to contact the tax authorities in the country  you’re working in to clarify your tax liability.

There are special rules for the membership in the National Insurance Scheme when you study abroad.

Salary income and other benefits that were earned on the basis of your personal work input, but that is not paid before your tax liability in Norway ceased under internal law, must be recognised as of the date your tax liability ceased and be taxed in Norway. This could for example be holiday pay, bonus payments, severance pay (“parachute payments”), etc. It doesn't affect your tax liability if the payment amount isn't determined until after the work has been performed, or that the payment isn't to be made until a certain period of time after the work was performed.

Example:

A person moves to Norway from Sweden in February 2014 and works here in Norway until October 2016. The person then moves back to Sweden and is assigned the status of ‘emigrated from Norway for tax purposes’ with effect from 1 January 2017.

In May of the year after the person emigrated, the person receives a bonus payment from their previous Norwegian employer based on the work they performed in 2016. As the person isn't a tax resident of Norway in the year of payment, the bonus payment must be recognised and taxed in the year of emigration.

If you receive such benefits, you must contact the Norwegian Tax Administration so that the tax assessment and withholding tax for both the year of payment and the year of emigration can be assessed correctly. 

If you meet the requirements for cessation of tax residence pursuant to domestic law or a tax treaty you're liable to tax on the increase in value of shares etc. up until the date you move from Norway. The taxable amount is the gain that would have been taxable if the shares, etc. had been realised on the day before the cessation of full tax liability. These rules also apply to individuals who become tax residents in Svalbard. The rules also apply if you transfer shares, etc., to individuals or entities who are resident outside of Norway. Up until and including 28 November 2022, the rule applied to transfers to a spouse who is a tax resident in another country. From and including 29 November 2022, the tax liability was expanded to apply to transfers to individuals you’re related to or in a relationship with by marriage in the ascending or descending line or in the collateral line, as close as an uncle or aunt. From 3 December 2023, the tax liability applies to transfers to anyone who is tax resident or domiciled outside of Norway. 

Your tax liability applies to gains relating to:

• shares and equity certificates in Norwegian and foreign companies
• units in Norwegian and foreign unit trusts
• holdings in Norwegian and foreign partnerships etc.
• subscription rights, options and other financial instruments relating to shares, etc., including options from your employer

There is no requirement relating to the size of the ownership interest in the company or the period of ownership.

Your tax liability does not apply to share savings accounts and shares placed in share savings accounts.

When the total net gain (after any deductible loss) does not exceed NOK 500,000, the latent gain is not taxable. If the total net gain exceeds NOK 500,000, the entire gain is taxable.

Latent losses are only deductible when moving to another EU/EEA country and only to the extent a deduction is not granted in the other country. The taxpayer is only entitled to a deduction if the net loss exceeds NOK 500,000.

Your tax liability applies irrespective of how long you have been tax resident in Norway.

The latent gain that is liable to tax is calculated and assessed in connection with the tax assessment for the year when you moved (the day before the cessation of full tax liability). Any latent deductible loss will also be calculated in connection with the assessment for the year you moved, but it will not be settled until such time as the shares, etc. are realised.

If the move abroad or transfer occurred before 29 November 2022, your tax liability applies for five years. If the move abroad or transfer occurred on 29 November 2022 or later, your tax liability is perpetual.  

Information about shares, etc., in the tax return

When you state in the tax return that your tax residency to Norway has ceased according to domestic law or a tax treaty, you must provide information about unrealised gains and losses on all shares, etc., covered by the tax liability. This applies irrespective of how many shares etc. you own.

The information should be entered in the tax return, in the cards related to exit tax. Please note that if you were registered as emigrated for tax purposes on 1 January in the income year, you must complete the cards in the tax return for the previous income year. If you moved on 1 January 2022 or earlier, you must submit form RF-1141 "Gains and losses on shares and ownership interests at the time of emigration" (in Norwegian only). The same applies if you submit the tax return on paper. 

You must also fill out the cards on exit tax in the tax return if you move to Svalbard or transfer shares, etc., to individuals who are tax resident or domiciled abroad. 

The opening value of the shares, etc. is determined in accordance with the ordinary rules. If you've lived in Norway for less than ten years, you can demand that the market value on the date when you became a tax resident in Norway be used as the opening value for the shares, etc. The opening value may not, however, be set higher than the closing value.

The closing value shall be set at market value on the day the shares, etc. are deemed to be realised, i.e. the day before the cessation of your full tax liability. For listed shares, the average turnover value on the realisation date shall be used. For unlisted shares and holdings without a known market value, the value must be stipulated through the exercise of discretionary judgement.

Deferment of payment of the tax

You may be granted a deferment for payment of the tax on the latent gain until you actually realise the shares, etc., provided you provided adequate security for the tax. You may be granted a deferment without providing security when you move to an EU/EEA country and Norway has a treaty with a provision that the country you move to will exchange information on your income and assets and assist in the recovery of tax claims. You may also be granted a deferment for payment of the tax without security having to be furnished when you move to Svalbard. You must request a deferral of payment in the card "Exit tax" in the tax return. 

Realisation after you have moved

If you’re covered by the provision regarding exit tax and realise shares, etc. after your tax liability has ceased according to domestic law or a tax treaty, you must provide us with information about this within two months after the realisation took place. If you were tax emigrated or transferred the asset on 2 January 2022 or later, you must resubmit the tax return and enter realised gains and losses in the cards where you have already filled out information about latent gains and losses. If you moved or transferred the asset on 1 January 2022 or earlier, you must submit the form RF-1314 "Realisation of shares and holdings after cessation of tax residence in Norway" (in Norwegian only).

Changes to the calculated latent gain

The calculated latent gain that is taxable in Norway can be reduced when you realise the shares, etc. at a value lower than the closing value stipulated in connection with the move. You can provide information about this in the tax return for 2022 or later years, or in form RF-1314 for 2021 and previous years. 

The calculated tax lapses if:

• you move back to Norway and become a tax resident here pursuant to domestic law before you sell the shares etc.
• you become a tax resident in Norway pursuant to a tax treaty before you sell the shares etc.
• it has been five years since the move abroad or transfer if the move abroad or transfer occurred on 28 November 2022 or earlier. 

The Tax Administration can provide further information.

You can get a refund for a proportion of the one-off registration tax when you take the car or other vehicle with you.

Find out how much you can get refunded and how to apply for the refund.

Nordisk eTax is for you who live in a Nordic country and have income or assets in another Nordic country.