ILN: BUYING AND SELLING REAL ESTATE - AN INTERNATIONAL GUIDE

[BUYING AND SELLING REAL ESTATE IN NORWAY]

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VI. CLOSING COSTS/ADJUSTMENTS A. The buyer pays the documentary stamp duty. The fee is 2.5 per cent of the value of the property at the time of registration. B. Among other things this do not apply to the following transfers: 1. transfers between spouses, 2. transfers which is a consequence of separation, 3. transfers which is a consequence of inheritance, 4. transfers which is a consequence of legacy, 5. transfers of properties which is not used earlier, 6. transfers of buildings under construction, 7. transfers of a leased property, 8. transfers which is a consequence of termination of co-ownership, 9. transfers which is a consequence of termination of cooperative housing and 10. transfers after mergers, demergers and restructuring of businesses. C. The buyer also pays the registration fee to the government. The registration fee is NOK 585. D. The general rule is that gains/losses made on the sale of residential property are taxable/deductible. Gains made on the sale of residential property are tax- free if certain occupancy and ownership conditions are met. The following conditions must be met:

1. The sale must take place or be agreed upon more than one year after the property was acquired and 2. The owner must have used the property as its own home for at least one year during the two-past year before the sale takes place. E. Gains made on sales or other realization of plots of land will always be tax liable, and any loss will be deductible. F. Commercial properties are also taxable/deductible. VII. ANNUAL COSTS FOR PROPERTY OWNERSHIP A. Property insurance 1. Property insurance is not obligated, but most people sign up for a property insurance. B. Property tax 1. Municipalities can opt to introduce property tax. The fee differs between the municipalities within the country.

ILN Real Estate Group – Buying and Selling Real Estate Series

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