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LIFE IN NORWAY

Norway is considering making small boat registration mandatory

The Norwegian government is considering making it compulsory to register all small boats in the country.

Published: 8 January 2023 11:12 CET

Boats

The Norwegian government is seeking to implement stricter registration requirements for small boat owners. Photo by Stock Birken / Unsplash

There are an estimated one million recreational boats in Norway. Now, the government want stricter registration requirements for boat owners.

“We see that several organizations want a mandatory small boat register. There may be good reasons to introduce it in the interests of maritime safety and the fight against crime.

“Abandoned recreational boats can also be an environmental problem,” Fisheries and Oceans Minister Bjørnar Skjæran stated in a press release.

Today, registration is mandatory for boats longer than 15 metres. Furthermore, the Norwegian Society for Sea Rescue (Redningsselskapet) also keeps a voluntary small boat register.

“It is high time to address the major pollution problem posed by old small boats. A mandatory small boat register will enable boats to be traced back to their owners and thus contribute to reducing the extent of abandoned small boats,” Climate and Environment Minister Espen Barth Eide warned.

“We will assess the effects and the possible arrangement of such a mandatory register and then make a decision,” Skjæran added.

The evaluation work will be a collaboration between multiple Norwegian ministries.

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EXPLAINED: The incentives to attract people to northern Norway

In the last two decades, the number of births in northern Norway has fallen by 35 percent, and the situation is most dire in the Finnmark and Nordland counties.

A 2021 survey among 1,500 young people in southern Norway aged 20–40 showed that only 3.6 percent considered moving to northern Norway.

It is no surprise, then, that the Norwegian state has tried out a broad range of support measures to get people to stay – and thrive – in northern Norway.

While these measures haven’t had a major effect, they have been broad in scope, ranging from lower income tax to investments in transport and reforms in health and education.

But what is the current incentive framework for people who want to move – or stay – in northern Norway?

The action plan was introduced in 1990 to combat high unemployment and a collapse in the local fishing industry.

The Finnmark and Nord-Troms action zone

Many state incentives related to attracting people to northern Norway are aimed at young people.

Furthermore, these measures target Finnmark and Nord-Troms, which are particularly affected by depopulation, by categorising them as an “action zone.”

As Troms og Finnmark County points out on its website, this zone aims to “create an attractive region to live, work and run businesses in.”

The zone includes all municipalities in Finnmark as well as the municipalities of Kåfjord, Skjervøy, Nordreisa, Kvænangen, Karlsøy, Lyngen and Storfjord in Nord-Troms.

The benefits of living in the action zone

So, if you have a residential address and place of work in the action zone, you’ll be eligible for several financial advantages.

Some of the most prominent are tax cuts. As the authorities point out, special rules apply to the tax on ordinary income for taxpayers in Finnmark and Nord-Troms. Residents pay a base-rate of 18.5 percent on their income tax rather than 22 percent, which amounts to around 20,000 kroner less in taxes for somebody earning the national average income.

Along with that, electric power supplied to households and public administration in the action zone is exempt from electricity tax.

Businesses in the action zone pay a reduced fee for power supplied, and there is also no VAT on electricity supplied in the area. Furthermore, there is also an exemption in place regarding employer’s tax.

Parents – and prospective parents – are also incentivised to pick northern Norway to start a family. From August 1st, 2023, nursery places are set to be completely free of charge in Nord-Troms and Finnmark. The Norwegian government predicts that this will save families around 60,000 kroner per year.

If you’re a student, you have good reason to consider getting your education in the north of Norway.

If you live in Finnmark or some municipalities in Troms, you can have a part of your student debt – up to 20 percent of the original loan base, limited to 30,000 kroner a year – written off from the Norwegian State Educational Loan Fund (Statens lånekasse for utdanning).

Just know that you must live in the action zone continuously for 12 months to apply to get your debt reduced.

How much can you save through these incentives?

What does this actually mean in terms of potential savings?

According to a rough calculation from Troms og Finnmark County, a family consisting of two adults and two children can save up to 160,000 kroner a year.

The calculation assumes the full effect of student loan write-downs ( 30,000 x 2 = 60,000 kroner), daycare savings for two children implemented on August 1st (60,000 kroner), and an ordinary income tax deduction for Finnmark (20,000 x 2 = 40,000 kroner).

On top of this, a family in the action zone would also benefit from the exemption from electricity tax for households.

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