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• The lessee has the right to terminate an indefinite lease
agreement with three months prior notice, and there are no
requirements as to the form of such notice. The lessor also
has the right to terminate an indefinite lease agreement,
however there are several limitations and requirements as to
the form and procedure of such termination.
Energy certification
• All dwellings and commercial buildings (over 1,000 sq.m.)
that are sold or leased out are required to have an energy
certificate.
• It contains an energy label with the energy standard of the
building, consisting of an energy grade (from A (best) to G
(worst)), a heating grade with information about the source
of the energy, the measured current consumption of energy
(required for commercial buildings, voluntary for dwellings),
possible measures for improving the building’s environmental
performance and a summary of the most important
information on which the certificate is based upon.
• The Norwegian Water Resources and Energy Directorate may
issue fines in the case of absence of an energy certificate. We
are not aware of any substantial fines having been issued,
however it is likely that such absence will have commercial
implications.
TAX
Direct acquisition of a property
• As a main rule the registration of title in connection with an
acquisition of a real property is subject to the payment of
stamp duty (dokumentavgift). Registration of title is subject to
payment of 2.5 per cent stamp duty, the basis for calculation
being the fair market price of the property at the time of
registration. Registration is not, however, a legal requirement.
Foreign investors should note that a real property is vulnerable
to the creditors of the registered title holder if the transfer of
title is not registered at the same time as the acquisition of
the property.
• Provided that the title deed is already registered on the target
company (normally a single purpose vehicle), a transfer of
shares does not trigger stamp duty. Other costs may also
accrue in connection with the transaction, such as fees to
public authorities.
• If either of the parties are represented by a real estate agent
(normally the seller is), the payment of the agent’s fees is
subject to agreement between the parties. Normally, the party
who has engaged the agent will carry this cost.
• Sale of real property is exempt from value added tax (VAT).
• Capital gain and losses on realization of the property are
subject to tax at a flat rate at 27 %.
Purchase of shares in a company that own real estate
Taxation of dividends
• Dividends received from the company by shareholders who
are limited liability companies (and certain similar entities)
resident in Norway for tax purposes are exempt from tax
(participation exemption).
• However, 3 per cent of dividends distributed from other
companies shall be taxed as ordinary income which is subject
to tax at a flat rate of 27 per cent, implying that dividends
from shares covered by the participation exemption is
effectively taxed at a rate of 0.81 %. Exemptions from the
3 per cent rule may apply.
• Dividends received by shareholders who are individuals
resident in Norway for tax purposes are taxable as ordinary
income for such shareholders at a flat rate of 27 per cent
to the extent the dividend exceeds a tax-free allowance.
The allowance is calculated on a share-by-share basis. The
allowance for each share is equal to the cost price of the share
multiplied by a determined risk free interest rate which for
the income year 2014 is set to 0.9 per cent. The allowance is
calculated for each calendar year, and is allocated solely to
personal shareholders holding shares at the expiration of the
relevant calendar year. Any part of the calculated allowance
one year exceeding the dividend distributed on the share
may be carried forward and set off against future dividends
received on, or gains upon realisation, of the same share.
Any excess allowance will also be included in the basis for
calculating the allowance on the same share the following
years.
• Dividends distributed to shareholders who are individuals
or entities not resident in Norway for tax purposes, are as a
general rule subject to withholding tax at a statutory rate of
25 per cent. The withholding obligation lies with the company
distributing the dividends.
• The shareholder may apply for a refund of withholding tax in
the following circumstances:
–– The statutory withholding tax rate is reduced through tax
treaties between Norway and the country in which the
shareholder is resident.
–– Dividends distributed to limited liability companies (and
certain similar entities) resident within the EEA for tax
purposes are exempt from Norwegian withholding tax
provided that the shareholder is the beneficial owner
of the shares and that the shareholder is genuinely
established and performs genuine economic business
activities within the relevant EEA jurisdiction.
–– Furthermore, individual shareholders resident within
EEA may apply for a reclaim of the excess between the
statutory withholding tax rate and tax calculated as 27
per cent of distributed dividends less the tax free
allowance (see above).
Taxation on disposal of shares in the company
• For shareholders that are limited liability companies or similar
entities tax-resident in Norway a capital gain or loss on
realisation of shares in a limited liability company tax-resident
in Norway is comprised by the participation exemption.
Capital gains or losses resulting from a realisation of shares
qualifying for the participation exemption are not subject to
taxationor tax deduction.
• An individual shareholder resident in Norway for tax purposes
is taxable as ordinary income for capital gain derived through
a realisation of shares. Losses are tax deductible from
the shareholder’s ordinary income in the year of disposal.
Ordinary income is taxable at a rate of 27 %. The taxable
gain/deductible loss is calculated per share, as the difference
between the consideration for the share and the cost price
of the share, including any costs incurred in relation to the
acquisition or realisation of the share. From this capital gain,
the shareholder is entitled to deduct a calculated allowance,
provided that such allowance has not already been used to
reduce taxable dividend income. If the shareholder owns
shares acquired at different points in time, the shares that
were acquired first will be regarded as the first to be disposed
of, on a first-in first-out basis.
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Investors Guide to Europe 2015