Thinking of buying or selling a property in Norway? The landscape in Norway is stunning. This country is appealing to U.S. European and UK ex-pats because of its temperate summers and moderate winters. There is a lot of groundwork to lay first, though. Whether you’re considering calling Oslo or Drammen home, Norway is a fantastic place to call home.
When planning a trip abroad, non-native speakers should prepare thoroughly. The entire relocation process can be altered by a country’s peculiar regulations. A misunderstanding of the law, even if it’s unintentional, might have serious consequences.
As a foreigner considering a transfer to Norway, you likely have certain concerns. We’ll begin with a discussion of whether or not foreigners are legally allowed to purchase real estate in Norway, followed by an examination of the costs, dangers, and benefits of making such an investment in Norway.
Does having Norwegian citizenship make it necessary for me to own real estate in Norway?
To purchase real estate in Norway, citizenship is not required. There are no barriers for non-Norwegian citizens to purchase real estate in the country.
As soon as you obtain your residence permission in Norway, you will be able to make the purchase. If you want to buy a second house in Europe but don’t want to become a Norwegian citizen, you can still do it.
Owning property in Norway will not speed up the citizenship or immigration process.
You may not have to pay any sort of property tax at all, depending on where you decide to purchase. Each municipality in Norway has its own special character and attractiveness, making it difficult for Americans looking to relocate overseas to choose the ideal spot to buy.
Possible Dangers When Investing in Norwegian Real Estate
As a foreigner, you can buy a house in Norway with relatively little worry. There is always the chance of encountering unforeseen difficulties while purchasing property in a foreign country.
Problems with insurance claims are common after catastrophic events like fires.
It’s possible that the zoning regulations in Norway are stricter than those you’re used to, limiting the ways in which you can utilise a property once you’ve bought it.
It’s possible that local legislation will impose duties upon you that aren’t typical back home in the United States.
You can certainly avoid any major hazards if you complete your homework on Norway and the specific region you wish to invest in. The majority of Norwegians can help you out of a jam because they speak English as a second language.
Is It Possible for the Norwegian Government to Seize My Assets?
When talking about the government’s ability to seize private property, the term “expropriation” is often used. The Credendo Group reports that the danger of expropriation in Norway is minimal.
Unless your property is directly related to a criminal case, the government has no reason to seize it. A failure to pay property tax in a jurisdiction where such a tax is required may result in legal action.
If you stay out of serious trouble and respect Norwegian law, you will get to keep your stuff.
Do Norway Home Prices Typically Go Up Over Time?
Picture of Reine, Norway, on the Lofoten Islands. One can see a cluster of red shacks used for fishing perched on the shore of a rocky coastline in the middle of a body of water. There is a mountain range and a massive outcrop of rock off in the distance.
Due to the global spread of the COVID-19 epidemic, real estate prices have fluctuated wildly.
Overall property values fell throughout the country from 2015 to 2017, however the situation is improving. Real estate prices in Norway are rising again after a brief deceleration in early 2020.
There are even pockets of the country where real estate prices are increasing at exponential rates. Actually, home prices rose by 7 percent in 2020, and that tendency is anticipated to continue.
The housing market in recent years has been rather shocking, therefore it’s important to get expert advice before investing in a piece of real estate in Norway.
Three Norway Markets Expected to See Strong Growth
Norway’s real estate market is rising. Sales of residences increased by 5.1% in 2020 compared to 2019 levels. As a result, home prices across Norway, and especially in the capital city of Oslo, are expected to rise significantly in the near future.
The value of a home purchased in Norway might increase by as much as 12 percent over the course of three years. Of course, economic prognostication isn’t a perfect science. But this is great news for international businesses hoping to enter the Norwegian market.
Big cities in Norway, rather than smaller towns, are likely to have the most growth in property value during the next several years.
Oslo, Norway’s capital, is well-known for its abundance of open spaces, cultural institutions, and museum exhibits. In this pricey metropolis of 600,000 people, home values are projected to rise by 18.8 percent between 2020 and 2023.
Bergen is a city in Norway that overlooks the ocean and is surrounded by mountains and fjords. There is music, markets, and breathtaking scenery in this wet coastal jewel. Home prices increased by 6% in 2020, and experts predict that trend will continue.
Stavanger is one of Norway’s oldest cities and is renowned for its beautiful architecture, pristine beaches, and delectable fare. In 2020, real estate prices in Stavanger rose by approximately 10%.
Small towns in Norway are often more picturesque than their larger counterparts, and the country as a whole has a rich and diverse local culture. Although home prices are rising rapidly in Norway generally, these three localities stand out.
Sites Recommended for Searching for Real Estate in Norway
A photograph shows the Lofoten Islands, a group of Norwegian islands in the county of Nordland. The image depicts a picturesque village with a soccer field and a wide variety of brightly coloured buildings.
If you’re dead-set on purchasing Norwegian real estate, you should start researching the market now. In Norway, you work with the seller’s agent to purchase a home, but it’s always smart to get in touch with a real estate agent first.
Even while a property viewing in person is still highly recommended before making a purchasing decision, the way homes are marketed may be altered permanently by online presentations and auctions. Today, more than ever, visuals must be found that resonate with the viewer.
We’ve listed some of the best websites for purchasing Norwegian real estate to assist you either narrow down your search to a manageable number of homes or begin your search from the ground up.
When it comes to real estate, FINN is by far the most visited website in Norway. Real estate, automobiles, and watercraft are just some of the many things for sale on this website. You can start thinking about sailing adventures once you’ve settled into your seaside home.
The listings on Rubrikk come from all around the country, and the site is easy to navigate and aesthetically pleasing. Simply enter your preferred city or neighbourhood in the search bar and you’ll be taken to a page with hundreds of available homes for sale all over Norway.
The instant you click on a page on our website, it loads in English. It’s a portal showcasing real estate listings from all over the world. All types of real estate in Norway are listed, and their USD prices are clearly shown.
These sites are designed to showcase Norway at its finest. Check out VisitNorway and see what places interest you most.
Once you’ve found a potential destination, you may dive deeper into the research process to see if it’s a good fit.
Here Are the Eight Basic Steps Any American Can Take to Acquire Real Estate in Norway
The process of purchasing real estate as an American overseas might be complicated, but it can be simplified if you know what to expect.
If you’ve done your research on Norway online, visited the nation for an extended period of time, know which neighbourhoods pique your interest, and are ready to invest in Norwegian real estate, this is the place to begin. These guidelines can help you avoid getting swept up in the real estate industry by giving you a foundational understanding of how to buy a home.
Talk to Your Bank First
Find out where your money is at before you do anything else. Talk to your bank about the mortgage options available to you, whether or not you’ll need to make any additional payments to the bank, and whether or not you need to let the bank know that you might be using your account from Norway.
Avoid having your finances held up while trying to buy property abroad by notifying your bank in advance and keeping them up to date on your acquisition.
Get Professional Aid
In order to buy or sell a home in Norway, you must use the services of a licensed real estate agent.
A real estate agent can provide insight into the neighborhood you’re interested in buying in, interpret Norwegian law to ensure that you don’t run afoul of the system, and handle all of the associated paperwork.
Despite the fact that many Norwegians are fluent in English, most government documents are still written in the original tongue. Possessing the services of a real estate agent who is also proficient in Norwegian would make the process much less daunting. Getting an agent who has worked with people from other countries should be a top focus.
Look for a House
You’ve probably already settled on certain specific regions in Norway that you’d like to explore further. Share your search terms and preferred listings with your real estate agent.
After that, your real estate agent will schedule a viewing time for you. Most people just watch for a couple of hours at a time on the weekends. If this isn’t satisfactory, you and your agent can discuss other options.
Viewings allow potential buyers to examine a home and ask any pertinent questions before committing to a purchase. If you want to get the most out of viewing the property, you should be as comprehensive as possible and come up with questions before hand.
Make a bid
It’s time to put in a bid now that you’ve seen the property and gone over the numbers. This is a task that your real estate agent can handle on your behalf.
In Norway, bids are legally binding, therefore it’s important to avoid bidding more than you can afford.
If you’re dead set on buying in Norway, you had better do it the right way. Be sure to do your homework on the exact Norwegian municipality you’re interested in before submitting a bid. You shouldn’t rush into buying a home in Oslo without first learning as much as possible about Bergen.
Sign a Legal Agreement
Agents in real estate transactions will write out a contract that is fair to both parties. The conditions of the purchase, as well as the consequences for a breach on either party’s side, will be specified in this contract.
Ask any questions you have and make sure you fully grasp the contract before signing it. Especially when making an international purchase, it is imperative that you raise any concerns you may have with your real estate agent.
Obtain the Title
The seller will now officially hand over the deed to you. Your real estate agent will hold onto it until all of the necessary paperwork and procedures have been finalised. Your initial payment is due at this time as well.
Have the Property Listed
Congratulations! You now own the Norwegian home. Your real estate agent will now assist you with transferring ownership of the property into your name with the appropriate government agencies.
There will be a cost associated with signing up. Get an estimate from your realtor since it could change based on the location of the home you end up purchasing.
Send in Your Payments
It’s time to start making the additional installments now that you own the property. You’ll have to fork over some dough to the real estate agent in the form of commission, pay some money to cover the costs of the transfer, and then start making monthly payments on the property.
There may be a lot to do, but if you approach it with an open mind and take the time to explore your options, you’ll find that the process becomes much more manageable. There are no restrictions on foreigners buying property in Norway, so long as you can afford the purchase price and other costs.
The Price Tag of a New Norwegian Home
The costs associated with buying a home in Norway include not only those detailed in the previous section, but also those listed below in the tenth. Some of these costs are one-time payments, like application processing or the standard American property tax.
You’ll have to pay the standard homeownership expenses if you plan to really live in the house. Utilities such as power, water, natural gas, and parking will all require monthly payments.
The Norwegian property tax system may pique your interest. The amount you’re taxed will change based on the location of the property you buy. It’s common for tax rates to increase in cities with more populations.
Households in Oslo, for instance, are exempt from the city’s property tax. Instead, a 2.5% transfer charge will be added to the purchase price of the property. The property tax is completely taken care of when the initial payment is made.
In Norway, how can I apply for a mortgage?
If you can’t afford to buy Norwegian real estate, you can forget about your goals. When applying for a mortgage in Norway, most banks will accept your foreign nationality. These are around the same length as those in the United States, between 20 and 30 years.
You’ll need to show your tax returns and pay stubs when applying for the mortgage. If you have a shaky work history or tax issues, the bank may reject your loan application. Foreigners pose a greater security threat in Norway.
Keep in mind that it can take up to two weeks from the time of approval for the paperwork to be filed and the money to appear in your account after it has been transferred. Never get too attached to a particular property before the money has cleared, as offers in Norway are binding.
Let’s say you’re trying to get a mortgage but are having trouble doing so. In that scenario, you may want to contact your country’s embassy or a local real estate professional to inquire as to whether or not they provide any assistance to international citizens.
