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EXPLAINED: Norway’s plans for a tourist tax 

Norway’s government is looking at options to introduce a tax on tourists and tourism-related activities. Here is what we know so far. 

Pictured is a cruise in Norway.
A tourist tax could be introduced in Norway from 2024. Pictured is a cruise in Norway.Photo by Gautam Arora on Unsplash

Around 10 million tourists flock to Norway annually, drawn in by its majestic fjords, world-famous hikes, rugged wilderness and bucket-list activities such as Northern Lights tours. 

Many travellers already remark that the country is incredibly expensive. However, the cost of being a visitor in Norway could soon increase as the government plans to introduce a new tax on tourism-related activities. 

Earlier this week, the minority government consisting of the Labour Party and Centre Party, agreed on a budget for 2023 with the Socialist Left Party. 

Norwegian newswire NTB reports that as part of the agreement, the government would propose introducing a tax on tourism in 2024. The policies will be included in the budget for 2024, which will be presented next autumn. 

A potential tourist tax is still in its early stages, though, with the policy yet to be fully formulated. Still, Norway’s Ministry of Finance has begun exploring options regarding a tourist tax. 

“We have to investigate this and see how such a tax can be designed, both practically and legally. But the idea is that the local communities should be able to be left with more,” Lars Vangen, state secretary in the finance ministry, told NTB. 

The tax could come in the form of tourists paying additional tax on hotels, souvenirs and tourism activities. 

Proposals to pass some of the maintenance and cleaning costs on to tourists have appeared several times in recent years, most recently in the political agreement on which the current government was formed in October last year.

One of the reasons for a tourist tax is that many hotspots are located in small local authorities, where municipalities spend huge amounts each year on the upkeep of attractions, maintenance of key hiking trails and dealing with the pollution and litter caused by visitors.

Earlier this year, the Norwegian region Lofoten, known for its spectacular fjord and mountain scenery, said it would be willing to test-pilot a tourism tax scheme

The Norwegian Hospitality Association (NHO Reiseliv), an employer organisation for the sector, has previously been critical of potential tourist taxes, arguing it would make Norway a less desirable destination. 

READ ALSO: Best things to do in Norway in the winter

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TAXES

Taxes: Everything you need to know about Norway’s commuter deductions

Norway has a tax deduction that those who commute to work can claim. However, it must be added manually to tax returns, meaning many miss out. 

Taxes: Everything you need to know about Norway's commuter deductions

There are plenty of advantages to commuting to and from work, whether it be cheaper rent or property prices, being closer to nature, or being able to live closer to your children’s school. 

The obvious downside, apart from making the journey, is the cost. Thankfully, commuters in Norway can claim some of this cost back as a tax deduction. 

Furthermore, you can change tax returns up to three years after they have been submitted. If you have missed out on a deduction, you can log into the Norwegian Tax Administration portal and update the information. 

READ ALSO: Five things to do when you get your Norwegian tax return

Norway’s commuter deductions cover several categories. Firstly, those who spend nights away from home can claim additional expenses such as food and accommodation, you can also make deductions for travel between work and home. 

The Norwegian Tax Administration has a wizard on its website which tells workers whether they are classified as commuters and, therefore, eligible for deductions on its website. 

As a technical point, you can be ineligible for a commuter deduction, but you can also deduct daily travel to and from work. 

Those who travel round trips of more than 37 kilometres between work and home are eligible for the travel deduction. This deduction is calculated based on several factors, such as the length of the journey, whether toll roads and ferries significantly reduce the journey time, and the number of days of the year you work. 

The traveller’s deduction can be claimed for up to 230 days of the year. The low threshold for roundtrips means that journeys between Oslo and nearby towns such as Ski or Lillestrøm become tax deductible.

For example, if you commute 45 kilometres per day for 230 days of the year, you could deduct as much as 702 kroner from your taxes. 

Those who commute up to 100 kilometres per day and don’t use toll roads or ferries to shorten their journeys could deduct around 5,000 kroner from their taxes. 

This is based on the rules for 2023 and commutes from Oslo to nearby towns and cities. The Norwegian Tax Administration has a calculator on its website that can tell you how much you can deduct for your daily travel

If you want to try and add deductions for previous years, be aware that the thresholds for journey length were previously higher. The minimum distance for previous years was a daily round trip of 67 kilometres. 

Under these rules, travel between Oslo and some surrounding towns may not be deductible. Still, you can log in and check whether you can add deductions for previous years. 

How to add these to your tax return

When checking your tax return, you can choose to add information.

There is a section marked “Would you like to provide any other information?”. From there, if you go to the bottom of the list, there should be an option for “work and travel” (when using the English version of the portal). 

From there, you can input your information, making the process relatively straightforward. 

Below you can see some pictures on where to add any travel deductions. 

Pictured is a form from the Norwegian Tax Administration.

You can add the deductions under work/ travel. Photo: Screenshot / The Local.
 
Pictured is the commuter deduction form.

Those who travel for work, or to get to work have a number of potential deductions. Photo: Screenshot / The Local
 
The travel deduction form.

Here you can see where you input your daily travel information. Photo: The Screenshot / The Local.
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