NORWAY Law and Practice Contributed by: Sicilie Tveøy, Lars Christensen, Ramborg Elvebakk and Karen Margrethe Bugge, Advokatfirmaet Hjort AS
2.5 Transfer of Property In Norway, the “continuity principle” applies to the transfer of assets by gift or inheritance. This means that when property is transferred – either during the giver’s lifetime (as a gift) or upon death (as inheritance) – the recipient does not receive a “step-up” in the asset’s cost basis for capital gains tax purposes. This means the recipient (whether an heir or a gift recipi - ent) generally takes over the giver’s original cost basis and tax position in the asset (see also 1.3 Income Tax Planning ). 2.6 Transfer of Assets: Vehicle and Planning Mechanisms As Norwegian families do not pay estate or gift tax, there is no need for planning mechanisms to help transfer assets to younger generations tax-free. However, there are mechanisms that are overall tax- efficient, such as the use of holding companies to keep values and tax positions: parents may transfer investments into a family holding company (often an AS – limited company) and then either at death or gradually transfer shares of that company to children. In Norway, transferring shares by gift or inheritance does not trigger tax, and shares in private companies are typically valued at a discount for wealth tax pur - poses. Parents can gradually gift shares to the next generation, allowing for tax-efficient succession of ownership and control. Another strategy is for parents to gift property, such as a family cabin (vacation home), to their children while retaining the right to use it through a formal agree - ment. Since there is no gift tax in Norway, this transfer does not trigger immediate taxation. The property is removed from the parents’ taxable wealth and future estate, potentially reducing their wealth tax. If the chil - dren have lower net wealth, they may not be subject to wealth tax on the property, resulting in an overall tax saving for the family. Life insurance and private pensions can also func - tion as vehicles for transfer of funds: a parent might fund a life insurance policy or designated-beneficiary account that pays out to children upon death.
2.7 Transfer of Assets: Digital Assets In summary, digital assets in Norway are part of the estate and inherited like any other asset. No special succession rules apply beyond treating them under existing property and tax law. Digital assets, such as cryptocurrencies, are a rela - tively new but increasingly important aspect of Norwe - gian estate planning. For inheritance purposes, cryp - tocurrencies are treated as assets and passed to heirs without inheritance tax, but the original cost basis is retained, so any unrealised gains are taxable upon future sale. For income and wealth tax, cryptocurren - cies are considered property and must be reported on the decedent’s final tax return and valued at market value for wealth tax purposes. Given that cryptocur - rencies are not centrally registered or reported in Nor - way, it can be difficult for heirs to locate and access these assets. Owners should therefore ensure that heirs have sufficient information, including details and passwords, to identify and access any digital assets. Email and social media accounts have usage rights but no monetary value; heirs can access them accord - ing to the policies of the companies that own the email or social media platforms. Also here, all use and pos - sibilities to keep and store content is based on the heir’s knowledge of what accounts the deceased owned and of the passwords. 3. Trusts, Foundations and Similar Entities 3.1 Types of Trusts, Foundations or Similar Entities Norway has no law regulating trusts. A similar entity, a foundation called stiftelse , is regulated by law. Howev - er, there are differences between the two instruments. Norwegian foundations ( stiftelser ) are separate legal entities that can hold assets and operate either for charitable purposes or for a family purpose or for busi - ness, though purely private family foundations are less common due to strict regulations requiring a socially beneficial purpose.
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