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MONEY

What you need to know about owning an electric car in Norway

More and more motorists in Norway have decided to ditch the petrol pumps and go all-electric when it comes to their choice of vehicle. Before you take the plunge and splash out for a new battery-powered car in Norway, there's a few things you should know.

Pictured is an electric car charging.
Here's what you need to know about owning an electric car, which have outsold petrol cars in the country for a number of years in Norway. An electric car connects with a charger during the 'Motorshow' fair in the western German city of Essen on November 30, 2016. Photo by Patrick Stollarz/ AFP

In 2021, 64.5 percent of all new cars registered in Norway were EVs, or electric vehicles, the highest proportion of battery-powered vehicles being sold in the world.

The Scandinavian country has even set itself the lofty goal of having all new cars sold by 2025 be zero-emissions vehicles, meaning they are powered by either electric or hydrogen.

READ MORE: Electric Vehicles made up majority of new car sales in Norway in 2021

Why are electric cars so popular in Norway? 

Aside from offering an option to motorists concerned about their emissions, buying an electric car comes with several benefits.

Most of the benefits are financial incentives designed to make choosing an electric vehicle over a combustion engine car more feasible.

For example, there are no purchase or import taxes on electric cars, and they are currently exempt from VAT, EV owners also pay no CO2 or weight tax and pay reduced ferry fares.

The financial incentives to encourage people to opt for zero-emission vehicles mean that many EV models are cheaper to buy than their petrol counterparts. For example, it is cheaper for somebody to opt for an electric Volkswagen Golf over the equivalent petrol engine model, despite the electric Golf costing just under 11,000 euros more to import, according to electric motoring site elbil.no.

Another reason electric cars are so popular is the vast abundance of renewable energy. For example, hydropower provides 98 percent of all electricity in Norway. This helps to keep energy prices, and as a result charging prices, low.

What you should know if you are considering buying an electric car

One of the first things you will ponder when considering whether to take the plunge and opt for an EV is what the charging infrastructure is like.

More than 16,000 chargers are dotted around the country, including more than 3,300 fast chargers. This means there’s no need to be anxious about the range, as even in northern Norway, you can get about in an EV reasonably easily.

The best way to find a charging station is to check a map provided by ladestasjoner.no. To access the charging stations, you will need to sign up with the various providers in advance. There are around ten major providers.

You will also need to consider whether the range offered by the car is suitable for your day-to-day needs, regardless of the country’s charging infrastructure.

However, it isn’t all straightforward, and buying an electric car is becoming more expensive. If you purchase a used electric vehicle, you will need to pay a registration fee. You can check out the rates (in Norwegian) here.

In addition, from March 2022, the lower motor insurance fee for electric cars will be axed, meaning motorists will have to pay 2,975 a year in fees to insure their cars.

It is also unclear whether the VAT exemption will be retained into 2023 yet.

Another factor to consider is that electric cars suffer from range loss when the temperatures dip below freezing. Losing range on your battery could mean more charging stops and longer journey times.

Given Norway’s climate, this means that the range during winter will be consistently lower than during the more temperate months of the year.

However, it’s worth pointing out that all vehicles are less energy-efficient in cold weather.

When it comes to running costs, the (Information Council for Road Traffic) has found that, overall, maintaining and owning an electric car is better for your bank account than a traditional petrol or diesel engine vehicle.

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For members

WORKING IN NORWAY

Five things to know about wages in Norway

Norway is a great country to live and work in, and many point to the high salaries as a major pull factor. Here’s what you need to know about the wages in Norway. 

Five things to know about wages in Norway

Norway doesn’t have a minimum wage 

Many wrongly assume that the high wages in Norway must be the result of a high minimum wage. 

However, the country doesn’t have a minimum wage which covers all sectors. Instead, wages are agreed upon through negotiations between trade unions and individual employers or employer organisations. 

This contributes to high levels of trade union membership in Norway. 

Those who aren’t in a union or sectors where membership isn’t widespread negotiate their own wages. 

Some industries, where workers are likely to be exploited or where there may be a large number of foreign workers, have minimum wages enforced by the Norwegian Labour Inspection Authority.

READ MORE: Which industries in Norway have a minimum wage?

How Norwegian wages compare 

The average salary in Norway (more on that later) was 56,360 kroner per month in 2023. 

This equates to an annual salary of around 676,000 kroner. This is a salary equivalent to 49,000 pounds, 57,510 euros, or 61,266 dollars. 

The average annual salary in the US is 59,428, according to Forbes magazine.  Eurostat, the official statistics office of the European Union, measured the average annual salary for a single worker without children at 26,136 euros and 55,573 euros for a working couple with two children. 

However, wages vary greatly across the EU. In 2022, the net annual earnings of an average single worker without children were 47,640 euros in Luxembourg compared to 8,412 euros in Bulgaria

Meanwhile, the average Dane earns 46,972 Danish kroner before taxes, according to Statistics Denmark. This is around 73,981 Norwegian kroner. In Sweden, the average salary was around 38,300 Swedish krona or roughly 38,534 Norwegian kroner

Average wage versus median wage 

The average monthly wage of 56,360 kroner is pulled up by the very highest earners. The highest earners in Norway are found in the private sector. 

Statistics Norway used to keep data on the very highest earners, and around 41,600 people were in the top one percent in 2021 (the year Statistics Norway last kept data) 

To be in Norway’s top one percent required annual earnings of 1.8 million kroner or 150,000 kroner monthly

The median wage is a far more modest 50,660 kroner. 

Income tax 

Norway uses a mixture of progressive and flat taxation. The majority of wage earners in Norway, they will pay a flat income tax of 22 per cent, along with a bracketed tax based on earnings. 

The bracket tax ranges between 1.7 and 17.5 percent, depending on one’s earnings. This means that you can have income tax of up to 39.5 percent in Norway. 

Foreigner workers who are new to Norway will be sorted into the PAYE schemeThis is a flat tax rate of 25 percent, however there are no deductibles available. After a year, they will be sorted into Norway’s regular tax system. 

Norway’s gender and immigrant wage gap 

Foreigners in Norway typically make less money than their Norwegian counterparts. The average salary for a foreign resident in Norway is around 50,270 kroner per month, according to figures from the national data agency Statistics Norway.

Furthermore, when you take immigrants out of the wage statistics, the average wage rises to 58,190 kroner. 

The highest earners amongst foreigners in Norway were those  from North America and Oceania. They made 61,810 kroner on average. 

Africans, and those from countries that joined the EU after 2004, had the lowest earnings among all immigrant groups in Norway. 

While women’s wages increased more than men’s last year, a gender wage gap still exists in Norway. An average woman’s salary amounted to 88.3 percent of a man’s monthly pay packet.

bigger gap existed between Norwegian men and foreign women. 

READ ALSO: How much money do Norway’s different foreigners make?

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