NORWAY Trends and Developments Contributed by: Sicilie Tveøy, Thomas Alnæs, Ramborg Elvebakk and Karen Margrethe Bugge, Advokatfirmaet Hjort AS
Advokatfirmaet Hjort AS Universitetsgata 1, 0164 Oslo Norway Tel: +47 2247 1800 Fax: +47 2247 1818 Email: advokatfirmaet@hjort.no Web: www.hjort.no
Doing Business in Norway – Personal Circumstances as a Corporate Risk Factor Doing business in Norway involves navigating not only complex corporate matters but also understanding the tax and family and inheritance law implications on a personal level. Personal circumstances can also play an important role when starting a business in Norway. This chapter of the guide will focus on how individual life events – such as moving to Norway, marriage, divorce or death – can impact a Norwegian business. Proactive plan - ning is essential, including careful consideration of company structure, prenuptial agreements, wills and shareholders’ agreements. Norwegian tax resident If a person meets specific presence thresholds in Nor - way then they are, according to Norwegian tax law, considered a tax resident in Norway. The rules are as follows. • 183-Day Rule: A person staying in Norway for more than 183 days during any 12-month period becomes a tax resident: (a) from the first day of their stay if they exceed the threshold within the same income year; or (b) from 1 January in the income year they exceed the threshold. • 270-Day Rule: A person staying in Norway for more than 270 days during any 36-month period becomes a tax resident from 1 January of the income year in which they surpass 270 days. In practice, this means that spending six months or more in Norway within a year, or spending more than
90 days on average each year over a three-year peri - od, triggers tax residency. Once considered tax resi - dent, a person so remains until meeting the formal exit criteria (which generally require both physical absence and demonstrating that the person no longer has a home available for their use in Norway). A Norwegian tax resident is subject to any tax treaty with any relevant country, and liable to pay tax on their worldwide income and wealth in Norway. Relevant taxes It is important for an entrepreneur to understand how their salary, business profits and dividends will be taxed. Norwegian salary income tax is progressive with a flat base rate. For 2025, the general tax rate is 22% on a person’s general income (total income after deduc - tions). On top of that, a sliding bracket tax applies for higher incomes: • 1.7% on income between NOK217,401 and NOK306,050; • 4.0% on income between NOK306,051 and NOK697,150; • 13.7% on income between NOK697,151 and NOK942,400 and between NOK942,401 and NOK1,410,750; • 17.7% and above on income above NOK1,410,750; and • together with the base 22% and the National Insur - ance Contribution of 7.7%, the marginal tax rate on salary income is 47.4% (in 2025).
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