Faroese workers in Norway to face increased tax rates starting New Year’s Day

Starting from New Year’s Day, Faroese workers employed in Norway who currently pay less tax than at home will be required to pay more tax. The new regulations will equalize the tax rates, meaning that expatriates will no longer enjoy the tax advantage and will need to cover the difference between the foreign and Faroese tax rates.

Calculations suggest that the increase in tax payments will range from 2,000 to 5,000 krónur per month.

Niels Winther, director of the Faroese business chamber, indicated that there may be concerns about whether this change could deter some Faroese workers who are currently employed in Norway. The director of Faroe Offshore, which sends between 80 and 100 employees to work in Norway each year, has expressed skepticism about the alteration.

Winther is pleased with the new tax measures, stating it is inappropriate for the Faroese tax system to incentivize citizens to work abroad while paying lower taxes. Hans Jákup Johannesen, director of Faroe Offshore Service in Skála, also noted the potential implications for workers considering their options in light of these changes.