Taxes and finances in Norway: Guide for expats | KOCH Umzugslogistik

Moving to Norway is an exciting adventure that offers many new opportunities and experiences. One essential aspect that emigrants must consider is taxes and finances in Norway. This article provides comprehensive information about the Norwegian tax system, the best banks and tips for international money transfers for anyone wishing to emigrate to Norway.

The Norwegian tax system is progressive compared to Germany and is considered transparent. A particular difference: all tax returns in Norway are publicly accessible. Income tax is calculated on two bases: personal income (work, pension, self‑employment income) and ordinary income (income from work, business, capital less deductible expenses such as interest). Your worldwide income is taxed once you are tax‑resident in Norway (this is the case if you stay in Norway for 183 days within 12 months or 270 days within 36 months). The core elements of Norwegian income tax are the general income tax on ordinary income (22 percent), the progressive surtax (trinnskatt) on personal income, and the employee social security contribution (2026: 7.6 percent). Norwegian value added tax (mva) is 25 percent (standard) with reduced rates of 15 percent (food) and 12 percent (passenger transport, hotels, cinema) – in Germany, VAT is 19 percent with a reduced rate of 7 percent. The wealth tax, which no longer exists in Germany, is levied in Norway on net assets above an allowance.

The tax return (selvangivelse) is submitted electronically via the Altinn digital portal; for employees with only one source of income, the return is largely pre‑filled. The filing deadline for the tax return is 30 April of the following year. If you have paid too much tax, you will receive a refund.

Norway uses a progressive income tax system with a two‑stage calculation: general income tax (22 percent on ordinary income) and progressive surtax (trinnskatt) on personal income.

The personal allowance (personfradrag) in 2026 is 114,540 NOK (approx. 9,800 euros), plus a standard deduction for business expenses (minimum deduction).

High earners in Norway pay a maximum marginal tax rate (including 22 percent general income tax, surtax, 7.6 percent social security contribution) of about 47.4 percent. The German top tax rate of 45 percent (plus solidarity surcharge) is roughly at the same level.

Norway has several tax peculiarities that differ from the German system:

– Wealth tax: Norway levies a progressive tax on net assets above an allowance (up to 1.1 percent). Germany levies no wealth tax.

– Capital gains tax: It is subject to the normal general income tax rate of 22 percent (including dividends, interest, rental income). In contrast, the German withholding tax on capital income is a flat 26.375 percent (including solidarity surcharge).

– Property tax: Norway levies a municipal property tax (up to 7 per thousand of property value). Germany levies a property tax (assessment rate of about 300‑900 percent, depending on the municipality).

– In addition to the regular tax rates , social security contributions (7.6 percent as employee, about 14.1 percent as employer) are payable.

As a new employee, you will usually be automatically enrolled in the PAYE scheme (Pay-As-You-Earn) in Norway. This is often the simpler method for new arrivals. Under this option, you pay a flat tax rate of 25 percent (including social security contributions) on your employment income. The conditions are: you are not permanently tax‑resident in Norway, your salary is below a certain threshold (2026: 725,050 NOK), and you do not apply for an individual deduction scheme.

Advantages of PAYE taxation: the tax rate is simple to calculate, the tax is final and not adjustable, and a separate tax return is not required. In contrast, taxation under the general rules is progressive (22 percent + progressive surtax + 7.6 percent social security contribution), requires a separate tax return (with deductions), and high earners pay the highest tax rate of up to 47.4 percent. Compared to Germany, there is no comparable flat‑rate taxation of foreign employees.

To prevent your income from being taxed in both Norway and Germany, the two countries have concluded a double taxation agreement (DTA). If you are considered tax‑resident in Norway and have income from Germany, Norway generally applies the credit method (tax credit) to avoid double taxation. If there is any uncertainty, it is advisable to consult a Norwegian authorised public accountant (statsautorisert revisor).

A Norwegian bank account is the basic requirement for payment transactions in Norway. It is needed for salary payments, rent payments and bills. It also gives you access to BankID (the digital identity proof for tax returns, health services and many other services). The requirements for foreigners: a valid passport (the identity card is often not accepted). Unlike in Germany, opening an account without a Norwegian identification number is practically impossible.

 

Required documents:

– Norwegian identification number (fødselsnummer for longer stays, or D‑number for short stays of less than six months);

– Proof of residential address in Norway (rental contract or registration certificate);

– Employment contract or student enrolment certificate as proof of purpose of stay.

 

Access to BankID: when opening an account, you will usually be given the option to activate BankID (digital signature service). BankID is used in Norway for all types of online transactions, especially for the tax return, electronic prescription (e‑resep) and the health app.

The cost of living in Norway is on average 22.8 percent to 38 percent higher than in Germany. A family of four needs about 4,720 euros per month (Germany: 3,935 euros), a single person about 2,200 euros (Germany: 1,700 euros). Rent, restaurant meals and alcoholic beverages are particularly expensive. In addition, there are high taxes and social security contributions.

Financial tips for German emigrants: apply for your identification number (D‑number or fødselsnummer) early. Open a Norwegian bank account (preferably immediately after receiving the identification number). Activate BankID (for fast access to government and health services). Use PAYE taxation (often the simpler option for new arrivals). For more complex income, commission a Norwegian tax adviser (statsautorisert revisor) for the tax return. A comparison with Germany: in Norway, taxes for high earners are similarly high, but the wealth tax is an additional burden that does not exist in Germany. The cost of living is considerably higher in Norway. PAYE offers new arrivals a significant tax simplification. In return, you gain access to excellent public infrastructure, one of the best healthcare systems and a generous social welfare system.

The Norwegian tax system is progressive and, compared to Germany, similarly high, but offers generous social benefits. For new arrivals, the simplified PAYE taxation (flat tax rate of 25 percent) is recommended. The double taxation agreement with Germany prevents double taxation. The prerequisite for work, a bank account and a tax card is the Norwegian identification number (fødselsnummer). The cost of living in Norway is about 23 percent higher than in Germany – thorough financial preparation is therefore essential. KOCH Moving Logistics supports you with your move to Norway and helps you gain an overview of the tax and financial framework – so that your new start in the land of the fjords is a success.