In an effort to curb tax avoidance and ensure equitable taxation, Norway has implemented significant reforms to its exit tax regulations, effective from March 20, 2024. These changes are particularly relevant for individuals planning to relinquish their Norwegian tax residency.

Key amendments include the introduction of a basic allowance of NOK 3 million (approximately €270,000) on net capital gains upon emigration. Gains exceeding this threshold are subject to an exit tax, calculated at a rate of 37.84%. Taxpayers have the option to defer payment for up to 12 years, with interest accruing over the deferral period.

Furthermore, the reforms stipulate that 70% of any dividends received during the deferral period must be allocated toward settling the outstanding exit tax liability. In cases where the taxpayer passes away, the tax obligation may be waived if the heirs are Norwegian residents or deferred if they reside abroad and subsequently return to Norway within the 12-year timeframe.

Implications for emigrants

These measures aim to prevent individuals from avoiding taxation on gains accrued during their time in Norway. Prospective emigrants should conduct thorough tax planning and consult with professionals to understand the full implications of these reforms on their financial obligations.

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