Many people aren’t made aware of this when they buy, but you are obligated to pay tax on the earnings from your holiday home.
Online platforms and management companies are obliged to submit information to the tax office about all bookings taken, so it’s best to register and pay your taxes from the beginning, to avoid any surprises and fines later on.
Utility companies also supply information to the tax office, so even if you don’t take bookings online, your bills will indicate when the property is occupied.
We can register you with the tax office and give you advice on creating invoices for your clients and collecting expense invoices, as well as all your obligations. We make it easy for you to give us your information, sending a simple form for you to complete every quarter so we can calculate the tax due and advise you of the amount before it’s collected from your bank.
If you’re an EU resident, Norwegian or Icelandic citizen, you’ll pay 19% tax on your rental income and can deduct all related expenses, for example property management, booking commissions, utility bills and so on.
If you’re a non-EU resident, including the UK, you’ll pay 24% tax on your rental income and cannot deduct any expenses.
If you haven’t been declaring your earnings it’s not too late. We can backdate your declarations and help get you back on track. It’s always less stressful, and less expensive in the long run, to voluntarily submit the information, rather than waiting for the tax office to catch up with you.