In the budget for 2023 that SV and the government presented on Tuesday, they propose that people with “expensive” primary residences will pay more in property tax. According to SV, residences with a value of over NOK 10 million are expensive. This applies to fewer than 10 per cent of Norwegian homes, according to figures from the Prognosesenteret. The change means that everyone who lives in houses worth more than NOK 10 million will be richer on paper when the property tax is calculated. In other words, they have to pay more property tax if they have a so-called expensive primary residence. Property tax for residential properties Primary residential properties Property tax on residential properties is based on the asset value of the property. With the change, the value over NOK 10 million is valued at 70 per cent, compared to 50 per cent today. The primary residence up to 10 million is valued at 25 percent. For example, if you have a house with a value of NOK 15 million, on paper it will have a value of NOK 6 million, or 25 percent of NOK 10 million plus 70 percent of NOK 5 million. Secondary residences When it comes to secondary residences, 100 per cent of the value will be assessed as a basis for property tax, compared with 95 per cent today. Last year, 90 per cent of the value was assessed as the basis for wealth tax. Consumer manager at Huseierne Carsten Phil wonders about this tax increase. – It affects quite a few ordinary people, so I think it’s a bit of a strange way to tax, says consumer manager at Huseierne Carsten Phil. He says that the so-called expensive housing estates are quite common housing estates in Oslo and the surrounding area. – So a hit simply for those who are currently having a hard time, who have to pay increased electricity prices and municipal taxes. I think that may not have been the government’s intention, says Pihl. Fears more expensive rents The change will affect ordinary people in the press area in particular because housing values have increased, says head of the Norwegian Association of Estate Agents Carl Geving. – There are, for example, pensioners who happen to live in a house worth NOK 15 million. The tax change also applies to secondary residences, where property tax will now be calculated based on the full value of the residence, compared to 95 per cent as it is today. Geving is also concerned about increased property tax for landlords, because the entire secondary residence will now be assessed as a basis for property tax. This valuation has been stepped up over several years. He believes it will lead to fewer rental homes and thus more expensive rent for people. – We keep secondary detached house statistics which show that the share has fallen since 2019, and the fall is dramatic in Oslo. – Symbol politics CEO Henning Lauridsen of Eiendom Norge believes that the change will primarily affect home owners in Oslo and the area around the capital, as well as in some of the other larger urban areas. – Otherwise, it will have very little effect all around. He adds that for most people there is no question of an enormous increase. – First of all, I would call this symbolic politics which does not have much significance in the larger context. Instead, Lauridsen should have seen that the government fixed the equal value system first. The reason why expensive residences cheaply escape property tax is that the system is so bad that the values are seen completely incorrectly. Reducing the valuation discount will be a kind of repair of the weaknesses in the system, he believes. Smaller tax deduction in the BSU scheme In addition, the government, together with SV, has decided to halve the tax deduction for BSU from 20 to 10 per cent. Thus, you get half as much back on tax for the money you put in. The change saves the state more than NOK 600 million annually. Giving in Norway’s real estate brokers’ association strongly reacts to this halving. – It is a demolition of the scheme. – It stands out as a form of getting rich mentality, which is unreasonable in relation to all young people who are good at earning and saving their own money at BSU, which is an important first-time ticket to the housing market. Phil in Huseierne says that they think the reduction in the tax deduction is a bad solution. – We know that acquiring equity is one of the main challenges for many people when they want to buy a home. He believes the reduction will make it less interesting for many to save for their own home. – This means that it will be difficult for people to buy their own home over time, says Phil. The government says they prioritize those who struggle The government and SV said during the press conference on Tuesday that with this state budget they will prioritize, for example, families with children, social security and minimum pensioners. They have, among other things, increased child benefit, ensured 2nd graders 12 hours of free after-school care and halved electricity bills.
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Tax notice for homes over 10 million – news Norway – Overview of news from different parts of the country
