Foreign employees who work in Norway, and the businesses that engage them, must deal with a number of tax and reporting rules. The key questions are whether the employee is tax resident in Norway, whether a tax treaty limits Norway’s right to tax, where social security contributions are payable, which reporting duties apply to employers, contractors and clients, and whether there is a right to stay and work in Norway. This guide gives an overview of the rules in the Tax Act (skatteloven) and the Tax Administration Act (skatteforvaltningsloven) as they apply in 2026.
Tax Residence and Limited Tax Liability
Under Section 2-1 second paragraph of the Tax Act, a person becomes tax resident in Norway if the person stays in Norway for:
more than 183 days in any twelve-month period; or
more than 270 days in any 36-month period.
The person is tax resident from the income year in which the stay exceeds one of these limits. A tax resident is liable to tax in Norway on worldwide income and wealth.
A person who is not tax resident has limited tax liability under Section 2-3 of the Tax Act. Limited liability covers income from sources in Norway, in particular:
salary for work performed in Norway, including on the Norwegian continental shelf;
income from real property in Norway; and
income from business activity carried out in or managed from Norway.
The Effect of Tax Treaties
Under Norwegian domestic law, Norway has the right to tax salary for work performed in Norway from the first day. Where Norway has a tax treaty with the employee’s state of residence, the treaty may limit Norway’s right to tax when the stay is shorter than 183 days within an income year or a twelve-month period, depending on the wording of the treaty.
The treaty protection does not normally apply where:
the employer is resident in Norway;
the salary is borne by a permanent establishment that the employer has in Norway.
All the conditions of the 183-day rule must be met; the length of the stay alone is not decisive.
Special rules apply where an employee resident abroad is hired out to perform work in Norway. Under Section 2-3 second paragraph of the Tax Act, such an employee is liable to tax in Norway on income from that work from the first day, also where the salary is not paid from Norwegian sources. Whether a tax treaty nevertheless limits Norway’s right to tax depends on the wording of the specific treaty and on how its concept of employer is interpreted, as well as on whether there is genuine hiring out of labour in the particular case.
The employee’s tax position should therefore be assessed before the work in Norway begins.
Social Security
The main rule is that a person who takes paid work in Norway or on the Norwegian continental shelf is a compulsory member of the National Insurance Scheme (folketrygden) from the first day of work. For 2026, the social security contribution on salary is 7.6 per cent, and the employer pays employer’s National Insurance contributions.
Exceptions apply under Regulation (EC) No. 883/2004, which applies in Norway through the EEA Agreement, and under bilateral social security agreements. An employee posted to Norway from a state covered by these rules may remain a member of the home state’s scheme. The employee documents this with an A1 certificate or an equivalent confirmation from the home state’s social security authority. Where such documentation is provided, the employee’s social security contribution, and the employer’s contribution, are not payable in Norway or are reduced accordingly.
The PAYE Scheme and Deductions
Since 2019, foreign employees with a temporary stay in Norway have been able to use the PAYE scheme (kildeskatt på lønn), which is regulated in Chapter 20 of the Tax Act. Under the scheme, tax is withheld at a flat rate and the withholding is final, so no tax return is filed. The main features for 2026 are:
the general rate is 25 per cent, which includes the social security contribution;
a rate of 17.4 per cent applies to persons who are not members of the National Insurance Scheme;
the scheme only applies up to an income limit (NOK 725,050 for 2026), and those with higher income are taxed under the ordinary rules;
no deductions are granted under the scheme; and
the scheme is voluntary for eligible employees, who may instead request ordinary assessment.
The rates and the income limit are set annually; see the Tax Administration’s PAYE page for the current figures.
If the employee has no tax deduction card, the employer must withhold 50 per cent (Section 5-5 first paragraph of the Tax Payment Act). This also applies to foreign employees.
Employees taxed under ordinary rules who are commuters for tax purposes may claim deductions for additional costs for food, lodging and travel home. If the employer covers such costs for an employee in the PAYE scheme, the coverage is generally taxable as salary, since the scheme does not allow deductions.
The former general standard deduction for foreign workers on a temporary stay was abolished when the PAYE scheme was introduced. A standard deduction still applies to certain groups under Section 6-70 of the Tax Act:
persons with limited tax liability for work on board ships under Section 2-3 first paragraph (h); and
persons whose only tax liability to Norway arises under Section 2-3 first paragraph (h) or (k) to (n), which cover work on ships and work on the continental shelf and in the Norwegian economic zones, regardless of how long the liability lasts.
Under Section 2 of the Petroleum Taxation Act, persons whose only tax liability to Norway is for employment income under that Act are entitled to the deductions in Section 6-70 of the Tax Act, regardless of how long the liability lasts. For 2026, the standard deduction is 10 per cent of the same basis as the minimum deduction, up to NOK 40,000. The amounts are adjusted annually; see the Tax Administration’s rates page. It replaces other deductions, except union dues, the minimum deduction, certain pension contributions and the special deduction for seafarers.
Immigration Status Before Work Starts
Tax and immigration rules apply side by side. Before you start working in Norway, or before you engage a foreign employee, you should check that there is a right to stay and work here.
EU/EEA nationals have a right of residence under Chapter 13 of the Immigration Act, for example as workers (Section 112). If you are an EEA national staying in Norway for more than three months, you must register within three months of the date of entry, and a registration certificate is issued when the required documentation is presented (Section 117).
Family members of EEA nationals who are not EEA nationals themselves must obtain a residence card if they stay for more than three months, and the application deadline is three months from entry (Section 118). The residence card confirms a right of residence under the EEA rules. It is not a residence permit.
Nationals of other countries generally need a residence permit that gives the right to work before they start working. In certain cases, skilled workers may start working before the permit is granted, as explained in our article on early work start.
Biometrics and the residence card
A residence permit is documented by a Schengen-standardised residence card with stored biometrics (Section 64 a of the Immigration Act). A facial image and fingerprints are taken from everyone over the age of six, unless they have already been registered (Section 100 a). Under Section 10-6 third paragraph of the Immigration Regulations, you must be informed, when the permit is granted, of the duty to report to the police within one week after entry to have biometrics taken for the residence card.
The biometrics appointment with the police is part of the immigration process. Whether it also satisfies the ID check needed for the D-number and tax deduction card, or whether a separate appointment with the Tax Administration is required, should be clarified with the Tax Administration before work starts.
ID Checks, D-numbers and Tax Deduction Cards
A foreign employee needs a Norwegian identification number (a D-number or national identity number) and a tax deduction card before salary can be paid with correct withholding. Identity must be confirmed in person:
EU/EEA nationals, and other foreign nationals who are exempt from the residence permit requirement, book an appointment for an ID check at one of the selected tax offices or at a Service Centre for Foreign Workers (SUA);
the application for a tax deduction card is made on form RF-1209; and
the employee should bring a valid passport, or a national ID card accepted as a travel document, and the employment contract or confirmation of the assignment in Norway.
The employer retrieves the tax deduction card electronically through its payroll system. If the basis for the tax deduction card is incorrect, the employee may apply for a change, and the employer is then notified of the updated card.
Reporting Obligation for Clients and Contractors
Section 7-6 of the Tax Administration Act requires both clients and contractors to report assignments carried out in Norway or on the continental shelf by contractors that are not resident in Norway, as well as the foreign employees used on those assignments. The main features are:
the client reports the assignment on form RF-1199, and the contractor reports its employees on form RF-1198;
reports are submitted to the Register of Assignments and Employment Relationships (Oppdrags- og arbeidsforholdsregisteret, OAR); from 17 November 2026, reporting requires the new Altinn access packages rather than the old Altinn roles;
the duty covers the principal client in the contract chain, the reporting party’s own client and contractors up to two links down the chain;
assignments with an agreed consideration below NOK 20,000 are not reportable, and there are exemptions for assignments given by private individuals, cabotage and work on Svalbard; and
under the Tax Administration Regulations, the report must be submitted no later than the fifth day of the month after the work started, or the fifteenth day of the month if the work started after the twentieth of the previous month. The end of an assignment or employment must also be reported.
Sanctions for Missing or Late Reporting
Under Section 14-1 of the Tax Administration Act, the tax authorities may impose a daily coercive fine when information is not provided on time or contains obvious errors. The total coercive fine for a single failure cannot exceed 50 times the court fee (rettsgebyr). With a court fee of NOK 1,345 from 1 January 2026, the maximum is NOK 67,250. The court fee is adjusted annually; see the Tax Administration’s page on the court fee.
The fine does not accrue where compliance is impossible for reasons beyond the party’s control.
Under Section 14-7 of the Tax Administration Act, a violation fee may be imposed:
10 times the court fee (NOK 13,450 in 2026);
20 times the court fee (NOK 26,900 in 2026) for a repeated violation within twelve months; and
an additional fee of up to two times the court fee (NOK 2,690 in 2026) for each person or company for which information has not been provided.
A violation fee is not imposed for the same failure for which a coercive fine has been imposed.
How we can help
We assist foreign employers, contractors and their employees with tax residence, treaty questions, social security, reporting duties, residence permits, registration under the EEA rules and early work start in Norway, and we can help you plan the immigration and tax steps in the right order. You can read more about the firm at advokats.no or get in touch through our contact page.
This article provides general information as of 29 October 2026 and is not legal advice for your specific situation.
