If you are a Norwegian tax resident with income abroad — or a foreigner earning income from Norway — understanding Norwegian tax treaties is essential to avoid paying tax twice on the same income. This guide explains how Norway’s network of treaties works, the difference between exemption and credit methods, and what individuals should know for 2025 and beyond.
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🌍 What Are Norwegian Tax Treaties?
Norway has signed double tax treaties (DTTs) with more than 80 countries. These treaties are designed to prevent individuals from being taxed twice on the same income — once in Norway and once in another country. They apply to income from employment, pensions, dividends, interest, capital gains, and sometimes wealth.
📑 Methods to Avoid Double Taxation
Norway typically uses two methods under its tax treaties:
- Credit Method: The tax you pay abroad is credited against your Norwegian tax liability, but only up to the amount of Norwegian tax due on that income.
- Exemption Method: The foreign income is exempt from Norwegian taxation, but it may still affect your tax rate on Norwegian income through “progression.”
🔎 Example: Employment Income
Let’s say you are a Norwegian resident working in Germany in 2025, earning NOK 500,000.
- If the treaty applies the credit method, Germany taxes your salary, and Norway gives you a credit for German taxes paid. If the German tax is lower than Norwegian tax, you may still owe some Norwegian tax.
- If the treaty applies the exemption method, the salary is exempt in Norway but may increase your tax rate on your other Norwegian income.
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💶 Common Income Types Covered
| Income Type | Typical Tax Treatment |
|---|---|
| Employment Income | Taxed where work is performed; Norway may give credit. |
| Pensions | Often taxed in the country of residence, with exceptions for government pensions. |
| Dividends | May face withholding tax abroad; credit allowed in Norway. |
| Interest Income | Usually taxed in residence country; treaties may reduce foreign withholding. |
| Capital Gains | Typically taxed in country of residence, but check treaty for property and shares. |
⚖️ Dual Residency: Which Country Wins?
If you meet residency requirements in both Norway and another country, tax treaties include a “tie-breaker” rule, considering factors like:
- Your permanent home location
- Where your vital interests (family, business, property) are located
- Your habitual abode
- Your nationality
✅ Tips for Taxpayers with Foreign Income
- Always check whether Norway has a tax treaty with the country where you earn income.
- Keep detailed records of foreign tax paid — you’ll need them to claim credits.
- Review Skatteetaten’s treaty list annually, as treaties and rules may change.
- Consult a tax professional if you expect dual residence issues.
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