Foreign citizens living in Norway and people living abroad may freely purchase housing or property in Norway. However, you should be aware that certain types of property may involve an obligation to live in the property (boplikt) or farm the land on the property (driveplikt). This applies to properties in popular holiday areas and agricultural properties. Agricultural properties may also be subject to a type of birthright (odelsrett). This means that you may lose the right to the property to someone with birthright. The same applies to purchase of a tenant-owned flat, where someone with pre-emption rights can take the flat from you. In all cases, you must be informed of this before you sign the agreement, and you will be given a refund.
Most banks offer mortgage loans for purchase of a house or flat. If you want to buy a property in Norway, you must obtain a loan commitment certificate from a bank before you start to look at properties. The mortgage loan from the bank is paid back over a long period, usually between 20 and 30 years. Contact a bank to find out how much you can borrow and what interest rate the bank can give you. You should have your tax assessment (selvangivelse) and salary slips available to show your level of income. Another requirement is that you must pay 15 percent of the purchase price from your own capital to get a loan.
You can apply for a start-up loan in the municipality if you lack your own capital or have problems financing a property through private banks. The property must meet certain criteria if you are to receive help. You apply in the municipality in which you live. The municipality decides whether you can be granted a loan and how much you can borrow. It is the Norwegian State Housing Bank (Husbanken) that manages the scheme.
In some cases, you can also have a sub-letting contract (framleiekontrakt), where you rent from the person who has the rental contract to the property. In general, sub-letting is not permitted, unless the person sub-letting the property has the approval of the owner.
A deposit is generally required when renting a property in Norway, and it is recommended that you have a rental contract in which the rental conditions are specified. Unless agreed otherwise in writing or orally, it is normal to have a mutual period of notice of three months for ordinary properties and one month for a studio/room.
Anyone can buy a property in Norway, including foreigners and foreign companies. However, owning a property will not increase the speed or chances of getting Norwegian citizenship, or give you rights to come to your property if you cannot otherwise access Norway.
Owners of a property in Norway has the private property rights, but buying a property as a foreigner does not really give you any benefits or additional rights when it comes to visas, citizenship or entry to the country.
The laws behind the residency requirement are pretty difficult to fully understand, but the short summary is that you are supposed to live there for at least 5 years, and not use the property as a cabin or second home.
Once you have been in the country for a while, you might consider buying a house. Expats will be happy to know that there are no restrictions for foreigners purchasing property in the Nordic country. If you are a first-time buyer, you may qualify for the first-time buyer mortgage which allows you to borrow 100% of the purchase price.
Look online for homes on the market first and then attend some open houses. Viewings usually last about an hour and are typically scheduled for the evenings or weekends. This way you can also establish which areas of the city you prefer and the kind of property you would like to live in.
You will pay the real estate agent for their services plus a stamp duty for the registration of the property. Additionally, you are also now responsible for paying the seller the remaining money for the house.
You can apply for a mortgage from most private banks in Norway. The repayment period is usually between 20 to 30 years. Generally, you will be able to borrow up to 85% of the property price or three times your annual income. People who do not own a home in Norway can apply for a first-time buyer mortgage. This is a mortgage with the same interest rate for the entire amount and you can borrow 100% of the purchase price.
Documents you will need to bring to the bank to apply include your tax returns and payslips as proof of your income level. If you are approved for a mortgage, it can take up to two weeks to receive an official mortgage approval document. This is part of the requirements to buy a property in Norway along with a D number (learn more about this in the Working in Norway section).
Once you've decided to buy, do your research. Even if you've owned property in other countries before, the Norwegian system will be different to what you're used to. First off, you'll need to choose between freehold or a form of shared ownership such as a borettslag.
The broker will arrange a photographer and takstmann so the prospectus can be made and the property listed on popular real estate web sites. An open house is normally held 5-14 days after the property is first shown online.
I have not sold anything in the US or the UK yet but I do know a thing or two about buying real estate in Norway. My advice is set your must have list and try to find a property which suits your lifestyle.
Thanks for the article. We are currently weighting the pros and cons of buying a flat in Oslo and it is hard to even get a mortgage as foreigners! You need at least 15% of the flat price upfront if not more.
Can you please advise of the likely or estimated costs in purchasing a property? What property websites would you advise expats to use in searching for properties? Are there also other websites offering good advice in English? Thank you, Christopher
How long must I own a property before I can sell it after doing it up.I was told that if you sold your house before the 5 year limit you would have to pay 35% tax on the profit you may make. E.g. if you bought a place for 500000kr and sold it for 750000kr you pay tax on the 250000 bit.
In Norway, buying a house is easy for some people. Others, however, have found several challenges. When you purchase a property in the country, you should prepare for a lengthy process and expect anything else to be a bonus.
If we refer back to the Statista research mentioned earlier in this article, average property prices rose in Norway between February 2021 and 2022 from 4,100,901 NOK to 4,244,759. Tromsø saw a pretty significant jump, as did Oslo.
Trondheim saw a huge price index jump of 11.4% in the time period mentioned above, and Trøndelag County, in general, was also high on the property appreciation index. Houses in the region (excluding Trondheim) rose by 7.9% in value from the first quarter of 2021 to the same stage in 2022.
One of the reasons you might consider looking at a property is so you can get involved in real estate in Norway. Housing is in high demand thanks to a prosperous job market and plenty of students from Norway and abroad, but is it possible to rent your house to other people in the country?
If you plan to move to Norway and have your residence permit, you can buy it right away. Even someone looking for a second home in Europe without obtaining Norwegian citizenship can also purchase a property.
Depending on where you choose to buy, you might not even have to pay property tax. Finding the best place to buy in Norway can be difficult because each city or town brings a beautiful and unique charm that Americans hoping to move abroad will love.
You are only likely to have your property seized by the government if you break the law and your property is involved in the legal proceedings. If you live in an area with property tax, and fail to pay, you could face some consequences from the government.
The country faced overall depreciation in property value from 2015 to 2017, but things are looking up. After an initial slowing in the property market during early 2020, Norwegian property values are back on track, appreciating value.
Oslo: the capital city is known for its rich cultural heritage, museums, and lots of green spaces. This expensive city has 600,000 residents and is looking at property value raising 18.8% from 2020 to 2023.
Stavanger: one of the oldest cities in Norway, Stavanger is known for its colorful buildings, white beaches, and delicious local cuisine. The property values in Stavanger increased by nearly 10% in 2020.
Norway has dozens of charming small cities and towns with enchanting views and incredible local culture. Most populated areas currently see property values climbing rapidly, but these three places stand out in the Norwegian market.
FINN: FINN is the most popular real estate website for Norwegians on the move. This online marketplace has listings for everything from property, to cars, to boats. Once you settle on that cozy property by the sea, maybe you can start looking to set sail, too.
Not only will you have the costs mentioned above in step eight of buying a home in Norway, but there are additional costs. Some of these are one-time fees, like registration paperwork, or typical property fees you see in America.
If you intend to live on your property, you will have the typical costs associated with homeownership. You will also need to pay utilities like electricity, water, natural gas, or even parking monthly.
Oslo, for example, does not have property tax for residential dwellings. Instead, you will pay a 2.5% transfer fee on the property at the time of purchase. After you have paid that initial fee, you do not need to worry about property tax at all.
Once you get approved, make sure you have at least two weeks for the paperwork to file and funds to transfer into your account. Remember, bids are legally binding in Norway, so do not get your heart set on one particular property before the money has come through. 59ce067264