The harsh cold wintery climate of Norway, has dictated that building standards and materials are highly durable. There are many alpine ski chalets, park homes 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 any 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:-rotary registration land number and title number
- The holiday home property address
- The price valuation from the local tax office
- Floor space and land area measurements
- Details of any usage limitations in relation to building regulations
- 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. The main holiday home areas are: Akershus, Aust-Agder, Buskerud, Finnmark, Hedmark, Hordaland, Møre og Romsdal, Nordland, Nord-Trøndelag, Oppland, Oslo, Østfold, Rogaland, Sogn og Fjordane, Sør-Trøndelag, Telemark, Troms, Vest-Agder and Vestfold.