Interest Expenses in Norway: What’s Deductible and What’s Not

Interest expenses (renter) are a key deduction for taxpayers in Norway. Whether you have a mortgage, personal loan, or credit card debt, knowing which interest payments are deductible on your Norwegian tax return can save you thousands of kroner each year. This guide explains the rules for 2025 and 2026 and highlights common pitfalls.

✅ General Rule for Deductibility

In Norway, all interest expenses are deductible, regardless of what the loan was taken out for—whether it’s a mortgage, car loan, or personal loan. The deduction reduces your ordinary income (alminnelig inntekt), which is taxed at 22% in 2025 and 2026.

📊 How Interest Deductions Work

Example: If you pay NOK 50,000 in mortgage interest in 2025, your taxable income decreases by the same amount. At a 22% tax rate, this results in a tax saving of NOK 11,000.

Tax saving = Deductible interest × 22%

🏠 Common Deductible Interest Expenses

• Mortgage loans (primary or secondary homes).
• Car loans and other secured vehicle loans.
• Personal loans, including consumer credit.
• Credit card interest on carried balances.
• Student loans (if interest is charged).
• Interest on loans for investments in stocks or property.

🚫 What’s Not Deductible

• Interest disguised as fines or penalties (e.g., late tax payment charges).
• Interest related to non-taxable income outside the EEA (unless covered by treaty).
• Interest covered by employer benefits or reimbursed loans.
• Debt payments themselves (only the interest portion is deductible, not principal).

🌍 Interest on Foreign Loans

If you have a mortgage or loan abroad, the interest may still be deductible in Norway. However, deductions are proportional if the loan relates to income exempt from Norwegian taxation under a tax treaty. Loans connected to property inside the EEA generally remain deductible in full.

📅 When and How to Report

• Pre-Filled Return (skattemelding): Most Norwegian banks automatically report interest expenses to Skatteetaten.
• Foreign Loans: You must declare interest manually if it’s not pre-reported.
• Deadline: Tax return submission by April 30 of the following year (extensions possible).

💡 Tax Planning Tips

• Consider paying extra mortgage interest before year-end to boost your deduction in a high-income year.
• If moving abroad, check how deductions are prorated based on your residency status.
• Track credit card and personal loan interest, as banks may not always report automatically.
• Use Skatteetaten’s calculator to estimate the impact of your interest deductions on your refund.