SV unveils electoral program advocating for tax-free inheritance threshold in Norway

On Tuesday morning, the Socialist Left Party (SV) unveiled its electoral program for 2025. The party advocates for a tax-free inheritance threshold of 10 million NOK. Additionally, SV proposes a new inheritance tax, with revenues allocated to assist young people entering an increasingly tight housing market.

SV Deputy Leader Torgeir Knag Fylkesnes emphasized the need for a generational tax, stating that the income generated would help address the pressing issue of housing accessibility. He highlighted the unprecedented price surge in major cities, notably Oslo, where nearly one million Norwegians currently rent, further exacerbating rental costs.

The funds raised from the proposed inheritance tax would be directed towards increasing student housing, significantly strengthening the Norwegian State Housing Bank, and providing more housing support. SV additionally aims to establish a third housing sector modeled after Denmark, where public housing organizations would manage rented properties.

The abolition of inheritance tax was one of the first actions taken by the ruling Conservative Party led by Erna Solberg and the Progress Party’s Siv Jensen in 2013. Prior to its elimination in 2014, inheritance tax applied to values exceeding 470,000 NOK, regardless of the number of heirs. Currently, Norway has no inheritance tax.

Despite SV’s push, neither the Centre Party nor the Labour Party shows interest in reinstating an inheritance tax. Tuva Moflag, the head of Labour Party’s finance committee, argues that there are other methods to achieve a fair and redistributive tax system.

Three years ago, following a successful election for the red-green coalition, SV proposed the inheritance tax during discussions with the Labour Party and the Centre Party. However, these discussions did not lead to an agreement, and SV has since distanced itself, now facing a conflicting stance with the Labour Party on tax policy ahead of the upcoming elections.