formueskatt

Formueskatt, or wealth tax, is a tax on net wealth in Norway. It is levied on individuals and households whose net wealth exceeds a personal tax-free allowance, and it consists of a national component and, in some municipalities, a municipal component. The tax is intended to tax accumulated wealth rather than income and forms part of Norway’s overall tax system.

Net wealth is calculated as the market value of assessable assets minus liabilities. Assessable assets typically include bank deposits, stocks, bonds, and other financial instruments, as well as real estate. Real estate is valued under established rules; primary residences are included with special rules that reduce the value used for the tax base, and some pension assets may be treated differently in the calculation. Deductions for debt reduce the net wealth base.

The tax base is subject to an annual tax-free allowance. Generally, individuals have a threshold around 1.7 million NOK, with a higher threshold for couples, and only net wealth above these thresholds is taxed. The national rate has been around 0.95% in recent years, and the municipal component, where applicable, can add up to about 0.7%. The combined rate thus depends on the person’s municipality of residence.

Tax is assessed annually by the Norwegian Tax Administration (Skatteetaten), with wealth declarations and updates typically filed as part of the annual tax return. The formueskatt is subject to political debate and periodic reform, with discussions focusing on equity, economic effects, and tax avoidance.