Contracting in Norway

[hounceleb]

Hello,

I've been offered a contract in Norway and was interested in the best way to operate out there. I've looked into a payroll solution by with a retention of only 40% it is not great. I've also thought about becoming self employed over there.

[NotAllThere]

Last time I heard of someone contracting in Norway, he ended up paying no tax there at all. The system is somewhat complicated, and the tax authorities didn't really want to know for anyone being there less than a year.

I paid €14 for a half-litre of beer in Norway...

[scooterscot]

You bought your beer in the public house then. Buy it in the supermarket and it's as cheap as chips... well for a contractor. How did you spend euros in Norway?!

You're best remaining a UK tax payer if can while working in Norway, that's what I do. Are you to be paid in NOK of £?

40% does sound bad, is this a brolly company? I'd go the Ltd company route also rates out here tend to be better than UK rates, or at least in my line of work.

I've been working out here for a while, standard of life is good, this is one worth chasing...

[hounceleb]

I'm direct with the employer and will be paid in NOK. The contract will be won't be the whole year and as I intend to fly back every weekend I doubt I'll break the 180 day rule.

Every article about I've read about contracting in Europe warns off using a UK ltd company - so I'm abit aprehensive about using that route.

[scooterscot]

Remember Norway is not part of the EU, but rather the European Economic Area. http://www.norway.org.uk/ I've not had a problem operating an UK Ltd company out here, but then I'm paid in £. Does you client have any presence in the UK whatsoever? Another route you could charge through? I would investigate..

When charging NOK you obviously cannot charge UK VAT, thinking about it you're probably going to be forced to go the brolly route I'm afraid. Don't like the return? Then hike your rate up accordingly, I did this too, client did not have a problem paying either, I achieved 40% above my best UK rate... Norway is not short on cash, so I'm learning.

You might find flying back every weekend expensive (I got a loyalty card with fly sas, which helps but them I'm happy to stay out here on the weekends). I got my client to pay for my flights though!! Imagine a UK client doing that?

[TheFaQQer]

The contract will be won't be the whole year

Glad you're clear on how long it will be!

[NotAllThere]

You bought your beer in the public house then. Buy it in the supermarket and it's as cheap as chips... well for a contractor. How did you spend euros in Norway?!

Yes, I bought the beer in a bar. We'd brought a crate across on the ferry from Denmark, but it soon went. Euros were readily acceptable in most places. Even the small bakery where we got breakfast I was only there for a weekend rock festival, so supermarkets etc. were not on the agenda.
Totally wierd for it to be broad daylight at midnight.

[tim123]

Last time I heard of someone contracting in Norway, he ended up paying no tax there at all. The system is somewhat complicated, and the tax authorities didn't really want to know for anyone being there less than a year.

That's not what I have heard.

The story I heard was someone being seconded there for a few weeks from a perm position in the UK and the local Tax bods decided that they were entitled to some tax money (which technically they are) so they asked for it.

tim