Taxable value of holiday homes
If you own a holiday home at the end of the income year, it must be listed with a taxable value in your tax return.
Here you’ll find information about what you need to do if anything is missing or needs changing.
Examples of holiday homes are cabins, and apartments in apartment complexes built exclusively for holiday use.
Taxable value
For new holiday homes, the taxable value is 30 percent of the cost price including the plot of land, or 30 percent of the market value. A new owner can continue using the previously assessed taxable value.
If you extend or upgrade the holiday home, the taxable value should be increased. However, the taxable value must not exceed 30 percent of the market value. Read about when the taxable value of your holiday home has increased.
If the Norwegian Parliament, the Storting, decides on an annual adjustment of the taxable value, this will be pre-filled in the tax return. No such adjustment has been decided on for the 2024 income year.
Important information
A residential property that you use as a holiday home is normally taxed as a residential property and not as a holiday home.
Specific information if you:
- own a holiday home
- lease a plot of land for a holiday home
- own a holiday home in a residential complex
If you own a residential property that is used as a holiday home, separate rules apply.
What you need to do
If you find an error
- If the taxable value is higher than 30 percent of the market value, you can claim a reduction of the taxable value. You do not need to send us supporting documents now, but you must be able to provide them if asked.
- If the tax return is pre-filled with incorrect information about your ownership share, you must log in to your tax return and correct it. If the ownership share is not judicially registered, you must prove the ownership.
If you find an error
- If the holiday home is missing or has been entered with the wrong taxable value, you can log in to the tax deduction card and correct it.
- If you’re not the owner, you can remove the property from your tax deduction card.
The changes you make to your tax deduction card only apply to the current income year and will not be pre-filled in your tax return.
If the market value and the taxable value are too high
If the market value is too high, the taxable value and basis for net wealth tax will also be too high.
You can request that the holiday home is valued according to proven market value if you believe that the market value is too high. You must log in to your tax return and enter the proven market value.
The proof must date from the period after 1 July in the income year for which you’re asking for a reduction of the market value.
The person who valued or gave an estimated value on your holiday home must have inspected the holiday home both inside and outside.
Valid proof is:
- a valuation from a qualified valuer, or
- a valuation by an estate agent who is familiar with the district in which the holiday home is located, or
- observable market value - the price for which the holiday home or a similar holiday home in the same area has been sold. Proof of the observable market value could be a purchase contract or a similar document stating the sales price. By a similar holiday home, we mean a holiday home with a similar floor plan, size, standard, view, and light and noise conditions. Referring to a general market value of holiday homes in the area is not sufficient.
The proven market value must include any share of joint debt the holiday home may have.
The proven market value is used as a basis from and including the year in which you request this. An annual adjustment of the taxable value of holiday homes may be decided on. This will be considered in the pre-filled amount in the tax return.
Important information
You do not need to send us supporting documents now, but you must be able to provide them if asked.
This applies especially if you own
- 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.
If the holiday home has increased in value due to extensions or upgrades, the taxable value of the holiday home must be increased.
You must log in to your tax return and enter the value of the upgrade.
If you have a holiday home with a taxable value of NOK 500,000 and you upgrade the property for NOK 1,000,000, the previously assessed taxable value must be increase by NOK 300,000. (1,000,000 * 30/100 = 300,000).
The taxable value of the holiday home is NOK 800,000
(500,000 + 300,000 = 800,000).
There are separate rules for holiday homes under construction.
The holiday home must be valued according to how far you’ve come in the construction process. The taxable value is a proportionate share of the taxable value the holiday home will have when it’s completed. See example.
You are building a holiday home that you expect to cost NOK 3,000,000 including the plot of land.
At the end of the year, the building is 50 percent complete. The taxable value of the complete holiday home would have been NOK 900,000 (3,000,000 *30/100 = 900,000).
As the holiday home is 50 percent completed, this year’s taxable value is NOK 450,000 (900,000*50/100 = 450,000).
If your holiday home has been damaged by fire or natural disaster, it may affect the taxable value.
You’ll be liable for net wealth tax as if you were the owner of both the plot of land and the building.
In the tax return, you can claim a deduction for debt for your obligation to pay annual ground rent.
Initial valuation
At the initial valuation of a holiday home on leased land, the value of the plot of land must be included in the taxable value of the holiday home.
The value of the plot of land is calculated by multiplying the annual ground rent by the capitalisation factor 10. The taxable value of the holiday home, including the plot of land, is 30 percent of the cost price, or 30 percent of the market value.
In your tax return you enter the cost price, including the plot of land, or the market value of the holiday home. The taxable value is calculated automatically.
You lease a plot of land with an annual ground rent of NOK 10,000. You build a holiday home on the plot of land. The construction costs of the holiday home were NOK 2,000,000.
To find the taxable value you must first calculate the capitalised value of the leasehold plot. This value is NOK 100,000 (10,000 * 10 = 100,000).
The basis for finding the taxable value of the holiday home is NOK 2,100,000 (2,000,000 + 100,000 = 2,100,000).
The taxable value of the holiday home is NOK 630,000 (2,100,000 * 30/100 = 630,000).
If you can prove that the market value is lower, the taxable value is set to 30 percent of the proven market value.
Deduction for debt on the obligation to pay ground rent
The value of the plot of land must be included in the taxable value of the holiday home. Because the value of the plot of land is included in the taxable value, you can claim a deduction for debt in your tax return.
The deduction for debt is calculated by multiplying the annual ground rent by the capitalisation factor 10.
You enter the sum for the deduction for debt as part of your debt in the 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).
A holiday home that you use as a year-round residence is subject to net wealth tax according to the rules for holiday homes.
The main rule is that a holiday home must be taxed as a holiday home.
If the activity of you renting out the holiday home is extensive or is part of another activity, the holiday home is still subject to net wealth tax according to the rules for commercial properties.
Change of ownership
The judicial registration ensures legal protection for you as the owner. This means that no one may 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 change the ownership and add proof in your tax return.