Proposed law to allocate rental income taxes to municipalities in Norway

Next spring, a proposed law is expected that would allocate all rental income taxes to the municipality where the property is located.

This announcement was made by Ruth Vang, a minister, in response to a query from Member of Parliament Honnu Jensen regarding taxation on rental income.

Currently, the system operates such that for gross rental income, the municipality receives a share, which is 45 percent.

In cases where rental income is settled through an accounting process, individuals must inform the tax authority, TAKS, if the property is not situated in their residential municipality.

If this information is reported, TAKS has the capability to ensure that the tax revenue is directed to the municipality where the property is located, according to the minister’s statement.