Property tax, municipal fees and wealth value: what a home costs beyond the loan in Norway

Owning a home costs more than the loan. Three fixed items come on top: property tax (eiendomsskatt), which each municipality chooses to levy and which is capped at 4 per mille of the assessed value for homes; municipal fees for water, sewage, waste and chimney sweeping at around 17,000 kr a year on average; and the wealth value (formuesverdi), which decides how much wealth tax the home triggers.

Together these three set the running cost of owning, alongside joint costs and maintenance. They vary with the municipality the home sits in, so two identical homes can have different total economics.

Property tax: the municipality decides, capped at 4 per mille for homes

Property tax is a municipal tax the council itself chooses whether to levy. Not every municipality has it, some apply it only in parts of the municipality, and the rate varies. For homes and holiday homes the tax cannot exceed 4 per mille of the assessed value. The general maximum for other property is 7 per mille.

Basis	Rate (home max)	Property tax per year
2,000,000 kr assessed value	4 per mille	8,000 kr
3,000,000 kr assessed value	4 per mille	12,000 kr
4,000,000 kr assessed value	4 per mille	16,000 kr

Many municipalities stay below the ceiling, and most apply a basic deduction that is subtracted from the assessed value before the tax is worked out. To know what you actually pay, check the rate, the basic deduction and the assessment basis in the municipality the home is in.

Municipal fees: water, sewage, waste and chimney sweeping

Municipal fees cover water, sewage, waste collection and chimney sweeping, and on average they come to around 17,000 kr a year. These are cost-recovery services, so the amount varies widely between municipalities and with the size and consumption of the home. A detached house with its own water meter and a large plot can sit higher, a small flat lower.

The fees come on top of any property tax, and they are a fixed part of owning whether the home is freehold or some of them are bundled into the joint costs of a co-op.

Wealth value: 25 per cent of market value for a primary home

The wealth value is the figure the home gets in your tax return, used to calculate wealth tax. For a primary home, meaning the one you live in, the wealth value is set at 25 per cent of estimated market value up to 10 million kroner, and 70 per cent of the amount above 10 million. A secondary home is valued at 100 per cent.

Home type	Wealth value
Primary home, value up to 10m	25% of market value
Primary home, part above 10m	70% of the excess
Secondary home	100% of market value

The low valuation of a primary home means your home counts for less in the wealth calculation than its market value would suggest. A secondary home, such as a rental, counts in full and so gives a very different wealth picture.

How to budget the fixed cost of owning

When you weigh up a specific home, add up the items that actually apply in that municipality:

• Property tax. Does the municipality levy it? What rate and basic deduction? Capped at 4 per mille of the assessed value for homes.
• Municipal fees. Around 17,000 kr a year on average, but check the municipality’s rates and the size of the home.
• Wealth value. 25 per cent of market value for a primary home, folded into your overall wealth tax.

These costs do not change the asking price, but they do change what the home costs you each month and each year. Build them into your budget before you set a bidding limit, alongside the loan, purchase costs and maintenance.

Heimer reads the sales prospectus and gives you the total price, TG findings and a monthly cost that includes the fixed running costs. Paste the listing.