Taxation of Foreign Pensions for Norwegian Residents

Many Norwegians receive pensions from abroad—whether from years of working overseas, living as expats, or inheriting retirement benefits. But how are foreign pensions taxed in Norway? This detailed guide explains the rules for 2025 and 2026, including double taxation treaties, exemptions, and tips for reducing your tax bill.

📌 Are Foreign Pensions Taxable in Norway?

Yes. If you are considered a tax resident of Norway, you are subject to taxation on your worldwide income, including pensions earned abroad. The standard rate for pensions sourced in Norway is 15%, but foreign pensions follow specific rules under tax treaties and domestic law.

🌍 Double Taxation Treaties and Relief

Norway has double taxation treaties (DTTs) with many countries to prevent paying tax on the same income twice. These treaties usually decide:

• Which country has the right to tax the pension.
• How much tax credit you can claim in Norway for taxes already paid abroad.
• Whether your pension is exempted in Norway or credited against Norwegian taxes.

If your pension comes from a country without a treaty, you may still claim foreign tax relief under Norway’s unilateral rules, but credits are limited.

💰 How to Report Foreign Pensions

Foreign pensions must be declared in your skattemelding (Norwegian tax return). You will typically need:

• Documentation of the gross pension amount received.
• Proof of tax paid abroad (if applicable).
• Bank statements or pension fund reports.

The Norwegian Tax Administration may require translations and official confirmations for foreign documents.

⚖️ Examples of Taxation Scenarios

• Pension from an EU/EEA country: May be exempt or partially exempt if taxed in the source country, depending on the treaty.
• Pension from the United States: Generally taxed in Norway, but U.S. taxes can often be credited against Norwegian liability.
• Pension from a non-treaty country: Fully taxable in Norway, with limited relief.

🧾 Example Tax Calculation (2025)

Kari, a 70-year-old living in Oslo, receives NOK 200,000 from a Swedish pension fund and NOK 150,000 from the Norwegian state pension:

• Norwegian pension taxed at standard 15% rate.
• Swedish pension taxable in Norway, but Sweden withholds tax first.
• Kari applies for foreign tax credit to avoid double taxation.

With personal and minimum deductions, Kari’s effective Norwegian tax rate drops significantly.

⚠️ Mistakes to Avoid

• Failing to declare pensions from abroad (the tax office cross-checks with international data).
• Not applying for treaty benefits when eligible.
• Missing documentation of foreign tax paid, reducing your ability to claim credits.

💡 Tips for Maximizing Savings

• Check if your pension qualifies for exemption under EEA rules.
• Time withdrawals to avoid moving into higher bracket tax bands.
• Use charitable contributions and union dues deductions to reduce taxable income.
• Consult a tax advisor for pensions from multiple countries.