How Norway’s Exit Tax Changes Affect Expats in 2025 and Beyond

Norway’s exit tax rules have become stricter, targeting expats and shareholders leaving the country. From 2025 onwards, expats need to carefully evaluate the tax impact of moving abroad, especially when holding shares, options, or other equity investments. This guide explains the new exit tax regime, who it applies to, and strategies for minimizing liabilities.

📌 What Is the Exit Tax in Norway?

The exit tax (utflyttingsskatt) ensures that unrealised capital gains accrued while living in Norway are still taxed, even if the individual relocates. This applies primarily to shares, equity options, and other securities held at the time of departure.

📌 Key Changes Effective from 2025

• The previous five-year exemption rule has been removed. Tax liability no longer lapses after five years abroad.
• Transfers to close family members abroad are now subject to exit tax.
• The threshold remains: applies when total latent gains exceed NOK 500,000.
• Tax is calculated on the market value of assets the day before residency ends.
• Applies even if shares or options are not sold immediately after leaving Norway.

📌 Who Is Affected?

The new rules impact:

• Expats moving abroad after residing in Norway.
• Shareholders with large portfolios, especially above NOK 500,000 in gains.
• Employees holding stock options or RSUs from Norwegian companies.
• Families transferring assets across borders.

📌 Example: Exit Tax Calculation

Suppose an expat leaves Norway in July 2025:

• Value of shares at departure: NOK 2,000,000
• Original purchase value: NOK 1,200,000
• Unrealised gain: NOK 800,000

Since the gain exceeds the NOK 500,000 threshold, the entire NOK 800,000 is subject to exit tax. At the general capital gains rate (22%) adjusted for shares (effective 37.84%), the liability could be significant.

📌 Strategies to Manage Exit Tax

• Consider selling part of your portfolio before leaving to realise gains under Norwegian tax rules.
• Use tax treaties to avoid double taxation if moving to a country with an agreement with Norway.
• Plan transfers and inheritance carefully to reduce exposure.
• Seek advice on whether temporary residence abroad affects your liability.

📌 Looking Ahead: Expats and the 2026 Budget

The Norwegian government has signalled stricter enforcement in 2026 and beyond, aiming to ensure all latent gains are taxed. Expats should expect increased scrutiny from Skatteetaten (Norwegian Tax Administration).