Contracting in Norway
Professional contracting solutions for Norway, one of the world's most stable and prosperous economies with excellent quality of life.
Contracting in Norway with City Traders
Official Language
Norwegian
Major Business Cities
Oslo, Bergen, Trondheim, Stavanger
Currency
Norwegian Krone (NOK)
Tax Year
January to December
Key Industries
Oil & Gas, Maritime, Tech, Renewable Energy
Standard Tax Rate
22% + bracket tax
Introduction
Norway is in Northern Europe and borders Sweden, Finland, Denmark and Russia. It is a Kingdom and has been continually in existence for over a thousand years.
Norway has an extensive coastline and therefore has a long maritime culture. It is a relatively peaceful country and did not participate in World War I, however despite efforts to also remain neutral in World War II the invasion and occupation by Germany changed that.
Norway has close ties with both Europe and the United States and is a member of the United Nations, NATO, the European Free Trade Association, the Council of Europe, the Antarctic Treaty, the Nordic Council, the WTO, the OECD as well as being a part of the Schengen area.
Norway has extensive natural supplies of Petroleum, natural gas, minerals, lumber, seafood and fresh water and is the world's largest producer of natural gas outside of the Middle East and therefore enjoys a stable economy and ranks very high in all the various economical listings.
It has a democratic outlook and has consistently ranked in first place in the Human Development Index as well as holding first positions in Inequality Adjusted Ranking, World Happiness Report, OECD Better Life Index, Index of Public Integrity and the Democracy Index. It also has one of the lowest crime rates in the world.
Therefore if you are looking to freelance abroad in order to find somewhere peaceful with good living standards you could not pick a better choice than Norway. If you would like to hear more regarding the realities of relocating to Norway to work and the possible solutions that we can provide to you, please do not hesitate to contact us.
Registry/Registration
If you are not from the EU/EEA then you do need a residence permit in order to live and work in Norway and you normally require a job offer first. If you are from the EU/EEA then you can come to Norway and stay for up to six months whilst looking for work, although you should register with police less than three months of your arrival.
Norway is a small country with a small population and therefore moving there to work is not as easy as many other countries in Europe and is certainly easier if you are highly skilled especially in an area which is considered a skills shortage. So the skilled worker visa is most common and you will need to show that you have the right experience, training or qualifications as well as usually show a job offer which meets the minimum wage requirement. It should be noted that these are applicable for only two years and thereafter you will need to live outside of Norway for another two years before you can reapply. You can bring your family with you on these visas, but you need to show that you are able to support them and this obviously depends on factors such as how many dependants you have.
You will also require sufficient funds as it is not cheap to live there and when looking for accommodation due to shortages it is commonplace to ask for three months' rent as a security deposit.
After living and working in Norway for five years you can apply for permanent residence.
Income Tax
If you wish to be a freelancer or self-employed in Norway as opposed to an employee then normally the best course of action is to set up a sole proprietorship which must be registered for tax and submit returns. For self-employed you will need to pay advanced tax and so it is liable as soon as the income occurs and is due in four instalments in March, May, September and November. Late payment or failure to pay can result in the entire remaining advance tax being due immediately.
Income tax in Norway is separated into two categories and you pay both, these can differ slightly depending on your location, but for the most part are currently as follows:
Income Tax:
Standard 22%
Step-tax:
| Income (NOK) | Rate |
|---|---|
| Up to 180,000 | 0% |
| 180,000–254,500 | 1.9% |
| 254,500–639,750 | 4.2% |
| 639,750–999,500 | 13.2% |
| 999,500+ | 16.2% |
Social Security
As a freelancer or contractor you are not considered an employee and so with regards to social security you are not necessarily paid sick pay by your employer and can only claim from the state after the sixteenth day of sick leave. Nor are you entitled to holiday pay unless previously agreed. With regards to injuries and pensions you are also not covered and therefore should consider insurance or paying voluntarily into a pension fund.
You do still however have to make a national insurance contribution of between 8.2% and 11.4% of your pay depending on how you are classed. If you are from another Nordic country and are covered by their national insurance scheme then depending on having the correct paperwork you will not have to make contributions in Norway.
Business Structures
Contractors in Norway can operate through several different business structures, each with its own advantages and regulatory requirements:
Sole Proprietorship (Enkeltpersonforetak)
The most common structure for independent contractors in Norway. Simple to establish with minimal start-up costs. Registration with the Brønnøysund Register Centre is required. The owner has unlimited personal liability for business debts.
Limited Company (Aksjeselskap - AS)
Provides limited liability protection but requires minimum share capital of NOK 30,000. More complex to set up and maintain with higher administrative requirements. Offers better tax planning opportunities for high earners.
Partnership (Ansvarlig selskap - ANS)
For two or more partners with unlimited joint liability. Each partner is taxed individually on their share of profits. Less common for contractors but useful for collaborative professional services.
Umbrella Company
A third-party company that employs contractors and handles all administration, taxes, and paperwork. Provides a convenient solution for short-term contracts or those who prefer not to manage their own business affairs.
For most individual contractors entering the Norwegian market, a sole proprietorship is the simplest and most common choice. This structure has straightforward registration requirements and lower administrative burden, though it does come with unlimited personal liability.
When you receive an assignment as a contractor in Norway, it's essential that your client registers this with the Norwegian Tax Administration (Skatteetaten) even if you're not classified as an employee. This is important for various administrative purposes, including potential sickness benefit claims and statistical reporting.
Norway has some specific rules that contractors should be aware of. For instance, regarding bookkeeping records, all invoices must be auto-numbered using a proper invoicing system—documents simply drafted in word processors like Word are not acceptable.
The Norwegian work culture, which is typically more relaxed compared to many other countries, emphasizes work-life balance and employee wellbeing. The standard workweek is 37.5 hours, with strict enforcement of overtime regulations. This cultural orientation toward balanced working hours can be attractive for many contractors, though it does influence expectations around availability and project timelines.
Banking in Norway
The Norwegian Krone is one of the world's most stable currencies. For expats moving to Norway you will require a national identity number in order to open a bank account. Then it is usually a matter of visiting the branch with your passport and a passport photo, although some banks may also ask for proof of address and/or a recommendation letter additionally. In Norway there is normally a queue system by number and so you should get your number once you enter the branch.
Norway is a technologically advanced nation and it operates mostly without cash these days and the majority of transactions are carried out by debit card and so it is important to apply for one while opening your bank account. You can only get a credit card after living and working in Norway for at least a year, although they do accept major cards from other countries. Online and mobile banking are also predominant and you will most likely not need to visit the branch once the account is open. Therefore the biggest barrier to banking is likely to be language with regards to certain apps that can be used and so this should be taken into account when choosing a bank.
City Traders and Contracting in Norway
City Traders has years of experience not only in Norway, but also with a variety of different jurisdictions. We understand the intricacies of both the specific national and provincial laws and regulations. We can assist to help alleviate the concerns when dealing with a different system to ensure that all obligations are complied with. Norway is a popular jurisdiction for quality of life and happiness and that can only be achieved if a person is satisfied that all their affairs are in order so please do allow us to help you achieve your dreams.
Norway vs Other Contracting Markets
See how Norway compares to other popular contracting destinations. This comparison highlights key differences in tax rates, business environments, and contractor-friendly policies.
Quick Contracting Markets Comparison
See how Norway compares to other popular contracting destinations
| Metric | Norway | United Kingdom | Germany | Netherlands |
|---|---|---|---|---|
Corporate Tax Rate Standard corporate tax rate for businesses | 22% | 25% | 15% + 5.5% solidarity | 15-25.8% |
Fast Company Setup Ability to establish a business entity quickly | ||||
Self-Employed Structure Availability of sole trader/self-employed status | ||||
Umbrella Company Option Availability of umbrella company services | ||||
VAT/Sales Tax Rate Standard VAT or sales tax rate | 25% | 20% | 19% | 21% |
English Business Environment Ease of doing business in English |
Data updated: April 2025
View full comparisonRequirements Checklist
- Residence permit (non-EU/EEA) or registration (EU/EEA)
- National identity number for banking and taxation
- Registration with tax authorities
- Sole proprietorship registration for self-employed
- VAT registration (if applicable)
- National insurance contributions (8.2-11.4%)
- Auto-numbered invoicing system
- Bank account with a Norwegian bank
Need Assistance?
Our Norway contracting experts can provide personalized guidance for your specific situation.
Get Expert AdviceFrequently Asked Questions
Do I need to speak Norwegian to work in Norway?
While English is widely spoken in business contexts in Norway, especially in international companies and the tech sector, having basic Norwegian skills can be advantageous for daily life and administrative tasks. For certain sectors and client-facing roles, Norwegian proficiency may be required.
How does the work-life balance compare to other countries?
Norway is known for having one of the best work-life balances in the world. Working hours are typically 37.5 hours per week, overtime is compensated well, and workers enjoy generous vacation time (minimum 25 working days). The culture emphasizes family time and personal wellbeing alongside professional responsibilities.
What's the cost of living like in Norway?
Norway has one of the highest costs of living globally, particularly in Oslo. Housing, food, and entertainment are expensive, but this is balanced by high earning potential. Most contractors should expect to budget carefully, especially during their initial setup period when security deposits for housing (typically three months' rent) are required.
How does the tax system work for contractors?
Norway has a dual tax system: a flat 22% income tax plus a progressive bracket tax (from 0% to 16.2%). Self-employed contractors must pay advance tax in four annual installments. The tax system is transparent but complex, and professional assistance is highly recommended to ensure compliance and optimize your tax position.