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Norwegian air passenger tax could be replaced with ‘sustainable’ model

Norway’s Air Passenger Tax (Flypassasjeravgiften) could be replaced in a new government strategy for aviation.

An aircraft of Scandinavian Airlines SAS
An aircraft of Scandinavian Airlines SAS lands at Copenhagen Airport in Denmark on January 20th 2022. Norway is set to reform its Passenger Air Tax. Photo: Mads Claus Rasmussen / Ritzau Scanpix / AFP

The government is set to propose changes this autumn that would see the Air Passenger Tax replaced by a different taxation, it said in a statement.

The existing flight tax is currently suspended as part of Covid-19 economic relief. It reinstatement after the coronavirus suspension was scheduled to end on January 1st this year, but has been delayed until July 1st.

Normally, the tax adds levies of up to 214 kroner to fare prices for passengers.

The Ministry of Transport plans to present a new strategy for taxing air travel in the autumn as part of a wider proposal for the country’s aviation sector.

The plan will describe how emissions from aviation can be reduced and how the government can both reduce prices and increase the number of services on short haul services, the government said in the statement.

“It is a target that the Air Passenger Tax will be replaced with a tax that has a genuine climate effect and better geographical profile,” it said.

Prices for passengers could be as much as halved on so-called FOT routes as part of the plan, meanwhile.

FOT routes are domestic routes which do not operate at a profit and are financed by the state. These include services operated by airline Widerøe between Førde and Oslo in the south of Norway and Lakselv and Tromsø in the north.

The government has already consulted the industry, including airlines Norwegian, SAS and Widerøe, as well as industry interest groups and environmental organisations as to how the reforms might take shape, it said in the statement.

“The aim of the aviation strategy is to contribute to sustainable Norwegian aviation. It will be mostly focused on commercial flight but the strategy will also encompass other parts of the aviation sector such as helicopter businesses and drones. New technology, education, competencies and passenger rights are other theme to be touched upon by the strategy,” the government statement reads.

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EXPLAINED: The Norwegian rules on receiving inheritance from abroad

If you're expecting to receive inheritance from abroad, you'll need to be aware of both Norwegian and foreign laws.

EXPLAINED: The Norwegian rules on receiving inheritance from abroad

International citizens residing in Norway who receive inheritance from abroad must navigate complex rules and regulations, so it’s always advisable to contact lawyers specialising in the area.

The inheritance settlement is generally governed by the law of the country where the deceased resided at the time of death. The citizenship of the deceased is, generally, of no importance.

READ MORE: Everything you need to know about estate planning in Norway

This means that if an international citizen in Norway inherits assets from a deceased relative living abroad, the inheritance laws of the deceased’s country of residence will typically apply.

On the other hand, if the deceased had foreign citizenship and was a resident of Norway at the time of his death, Norwegian law would regulate the inheritance settlement.

Although, there are several exceptions to this general rule.

Special cases and will considerations

The Norwegian Supreme Court has previously ruled that heirs residing in Norway who accept inheritance from abroad can be subject to legal actions in Norway, even if inheritance matters were previously decided in another country.

Furthermore, if the deceased lived in a Nordic country but had a closer connection to another Nordic country, the inheritance laws of the latter country may apply.

The deceased may also specify in their will that the inheritance should be settled according to the laws of a particular country.

READ ALSO: What happens when a foreigner in Norway dies?

Some countries accept such stipulations if the will is valid and aligns with the deceased’s nationality or other legal factors.

However, if your case involves any of the circumstances listed above, it’s best to consult a legal expert.

What happens if your spouse dies abroad?

For married people, dividing the deceased’s estate often involves separating it from the surviving spouse’s assets.

This process is usually regulated by the first joint country of residence of the spouses, except for Nordic citizens, where Nordic inheritance rules apply.

The taxes that apply

Good news – Norway abolished inheritance tax for inheritances received from 2014 onwards.

Therefore, heirs residing in Norway do not have to pay Norwegian inheritance tax.

However, the country where the deceased resided may have its own inheritance tax laws, so make sure to consult an expert to determine whether that’s the case.

For example, the Norwegian law firm Codex Advokat Oslo points out on its website that Spanish inheritance tax laws would apply if the deceased resided in Spain, even if the Norwegian heir is governed by Norwegian inheritance laws for the settlement.

For some, wealth tax considerations also come into play. Wealth tax in the country is payable on wealth exceeding 1.7 million kroner per 2023 rules.

Importing inherited items into Norway

If you bring inherited items into Norway, they may be exempt from customs duty and value-added tax (VAT) under certain conditions.

Usually, you’ll be able to avoid these charges if the items were owned and used by the deceased, if the deceased was resident abroad at the time of death or if the heir resides in Norway when receiving the inheritance.

However, you’ll need to apply for customs duty and VAT exemption and submit an application to the Goods Handling Division of the Norwegian Customs Authority (Tolletaten).

You can find more information on the process on the Customs Authority’s webpage. Just remember that the application must be submitted before importing the goods.

Useful resources

A great resource you can use if you have questions about receiving inheritance from abroad while residing in Norway is the Advokatenhjelperdeg.no website, where Norwegian Bar Association lawyers can point you in the right direction – free of charge.

They have a useful database of questions which have already been answered, so it might be a good idea to browse it before asking a new question, as they may have addressed it in the past.

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