Introduction -
the harsh cold wintery climate of Norway, has dictated that building standards
and materials are highly durable. There are many alpine ski chalets and lakeside
log cabins available with hundreds of miles of coastline. The average property
price in the capital, Oslo, is extremely high, due to the oil, financial
services and commercial wealth of Norway; average prices have risen by 7% a year
over the last five years or so. The economy is mature and the country has
benefited form a stable political environment that has provided tax incentives
to foreign business investors including property investors. However, rising
prices generally now mean that return on investment for letting purposes is not
as good as the newer eastern block members of the EU. The countryside areas is
much more affordable top to a lower demand.
How to Buy a Norwegian Holiday Home - in Norwegian law, there is not any
need for a written agreement between the buyer and seller however in practice
contracts are always used; an offer is binding by the full amount and any
withdrawal constitutes a breach of the property agreement. Unlike the UK estate
agents, Norwegian estate agent has greater authorised powers to approve the
financial transfer and property deed registration 'tinglysning'. You will need a
good local lawyer who can prepare all the necessary paperwork and check the
'GAB' register to identify ay planning applications, technical aspects and other
local permits related to the property will be stored. Overseas property
investors must obtain what is known as “D number” from the local 'population
register', in order to prove their identity. When you approach a qualified
estate agent they will produce the holiday home sale particulars which will
include:-
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Notary registration land number and title number
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The holiday home property address
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The price valuation from the local tax office
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Floor space and land area measurements
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Details of any usage limitations in relation to building regulations
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Mortgage charges on the property
The agent will have had up to two years experience and a university
qualification in order to able to act as an estate agent. The UK version of
'completion' is known as the 'settlement' and must be independently witnessed by
a qualified notary. Following verification of signatures, the notary then
collects the fees. On the same day a joint inspection normally occurs with the
buyer and the seller of the property.
Holiday Lets in Norway - Following completion if the holiday home is used as
a holiday let, the income tax will be based on 2.5% of the property value. In
addition, 28% of the rental income profit will be liable for tax. Disagreements
about rent between tenants and their landlords can be settled in either the
Conciliation Court (forliksrådet) or the Rent Disputes Tribunal (Husleietvistutvalget).
You may not ask for a deposit of more than six months old and it must be held in
an interest bearing account and all interest must be repaid to the tenant at the
end of the term. The Namsmannen authority initiates any eviction processes put
in place for long term holiday lets that have ended in a tenant refusing to
leave at the end of the term. AssetSure are
able to offer insurance for an Norway holiday home.
So if you are seeking an holiday home insurance quote for a property in cities
like Oslo, Trondheim, Bergen, Drammen or Kristiansand, why not see if we can
help? In addition, Assetsure provide overseas property insurance and
holiday home insurance for other countries including Australia, Austria,
Belgium, Bulgaria, Brazil, Canada, Cape Verde, Chile, Croatia, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Egypt, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Liechtenstein,
Luxembourg, Malta, Monaco, Montenegro, Morocco, Netherlands, New Zealand,
Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Africa, Spain,
Sweden, Switzerland, Thailand, Turkey, United Arab Emirates, United Kingdom
(UK) and Venezuela.
