Reply to: I contracted in Norway - Ask me anything

[Eirikur]

This has been a very informative thread, I think ill do same for those interested in Holland as I've been there nearly two years, I am now considering a role in Stavanger Norway.

Question if I may, I'm a Ltd Co contractor and the agent is telling me Corporation Tax will not be payable in the UK as all work is invoiced in NO (neither will VAT). My question is a minor one but not inconsiderable, I will incur approx. GBP 4000 a year in taxis fees to/from the airport, how is this expensed managed (the rate is all inclusive to me so all expenses to my account) i.e. is tax deductible expense in UK only?

I'm thinking the only thing my UK accountant will do is my PAYE and dividends and my Corporation TAX, VAT should go away.

Any advice welcomed, I've never contracted I Norway and its very confusing to me?

Tks

Graham

You contracted two years in The Netherlands and still don't know what the country is called? Not sure if we can rely on your advice

[rogerfederer]

Thanks Sal, the agent did indeed paint a different picture, discussing with my accountant tomorrow as they’ve offered the role.

Better to live in Norway and contract elsewhere.

What hourly/daily rate are you being offered?

Currently worse than 2013 rates - 9.8EUR per 100NOK, 8.6GBP per 100NOK. The NOK is less powerful than 6 years ago.

[Escapizm014]

This is a 6 years old thread and OP's last activity is 26th May 2018 10:55 I wouldn't hold my breath for an answer.

The main takeaway from OP's post for me was - use local umbrella.

If you chose to go via your own company - don't listen to what the agent is telling you about taxes and expense - ask your accountant.

Thanks Sal, the agent did indeed paint a different picture, discussing with my accountant tomorrow as they’ve offered the role.

[sal]

This has been a very informative thread, I think ill do same for those interested in Holland as I've been there nearly two years, I am now considering a role in Stavanger Norway.

Question if I may, I'm a Ltd Co contractor and the agent is telling me Corporation Tax will not be payable in the UK as all work is invoiced in NO (neither will VAT). My question is a minor one but not inconsiderable, I will incur approx. GBP 4000 a year in taxis fees to/from the airport, how is this expensed managed (the rate is all inclusive to me so all expenses to my account) i.e. is tax deductible expense in UK only?

I'm thinking the only thing my UK accountant will do is my PAYE and dividends and my Corporation TAX, VAT should go away.

Any advice welcomed, I've never contracted I Norway and its very confusing to me?

Tks

Graham

This is a 6 years old thread and OP's last activity is 26th May 2018 10:55 I wouldn't hold my breath for an answer.

The main takeaway from OP's post for me was - use local umbrella.

If you chose to go via your own company - don't listen to what the agent is telling you about taxes and expense - ask your accountant.

[Escapizm014]

Great Info

Hello all,

I have been contracting in Norway for over a year now, and would like to offer up some real numbers and hard facts plus some opinion - and try to answer any questions, people might have. I do this because I wish I had had somebody to ask before I wen there, so I could have made more informed decisions and set realistic expectations.

I want to retain anonymity, so I will keep the numbers round and some facts vague.

I am in my late 30s and have been a professional developer for about 15 years. I am born and live in a western European EU country, that is not UK. I am a developer in the Microsoft-space, and was hired through an agent in Norway to work for a large oil company on location in Oslo.

All numbers are in NOK unless otherwise specified. 100NOK is about €13 or £11 pounds.


Work and hourly

My hourly when I first started was just below 600NOK, raised to about 680NOK after 8 months. My agent charged 30% on top of that. I billed monthly and got paid 30 days later.

I worked on average 130 hours a month when factoring in holidays, which they expect me to take like the permies - ~5 weeks a year.


Tax

To work there as a contractor, I had to register a Norwegian company (a special kind called NUF which means Norwegian Foreing Registered company). The process was very painful and impossible to figure out. Working here as a contractor for an extended period of time - you will get taxed here.

I have to pay ~14% social security tax as an employer and ~40% tax as an employee - and since I am both, I get to pay both (yay!).

I spent about 13000NOK a month on expenses after getting a very good deal on an apartment and only being able to deduct my own flights home, not those of my wife coming here.

Gross I took home about 62% of my earnings, but after expenses it was reduced to about 44%, meaning that every time I billed the agency 100 NOK, 44 of them ended up in my pocket after taxes and business expenses - and then comes the super-high consumer prices out of that. I had expected to be able to retain more before I came here.

After 8 months, I changed to an umbrella company, which has increased my net take-home to about 49%. I highly recommend not doing it yourself, and just go through an umbrella.

Tax and law is not by any stretch of the imagination a specialty of mine, so I don't think I can contribute much here - but I am happy to try.

Expenses

A small apartment in or not too far from the city runs about 9-13.000NOK a month, everything included. Finding one was rather easy, using Finn.no, the most popular classifieds site.

Everything is ubelieably expensive in Norway. Order a standard pizza in a restaurant, get charged 200NOK. Beer is about 30NOK/bottle in the shops, more like 80-100NOK in a pub. Groceries in general are also very expensive, but of course that will always be relative. I find that using this site is a good way to get an idea about the price level compared to your own location: Cost Of Living Comparison

If you bring a car along, you are allowed to have it here for 2 years total without putting it on Norwegian plates (which will cost you about 2x the car value). Gas is pretty expensive (about 15NOK/l) and there are plenty of tolls to be paid as well. Register on https://turistportalen.csautopass.no/ when you get here, and they will yank the money right out of your credit card when you pass a toll station. For longer stays, register for an Autopass, where you will be billed monthly (and get a small discount) AutoPASS.


Culture

Everything moves slowly and they love their forms and paperwork. I have not gone out much, so I really cannot comment much on it - but with the prices... Yikes. Most contact I have had with Norwegian authorities have been relatively pleasant from a being helpful perspective - but the rules are terrible. Girls here are some of the most attractive in the world, but since I am spoken for, I just look and sigh. Norwegians trust each other and it is very, very safe here.



Feel free to ask me anything.

This has been a very informative thread, I think ill do same for those interested in Holland as I've been there nearly two years, I am now considering a role in Stavanger Norway.

Question if I may, I'm a Ltd Co contractor and the agent is telling me Corporation Tax will not be payable in the UK as all work is invoiced in NO (neither will VAT). My question is a minor one but not inconsiderable, I will incur approx. GBP 4000 a year in taxis fees to/from the airport, how is this expensed managed (the rate is all inclusive to me so all expenses to my account) i.e. is tax deductible expense in UK only?

I'm thinking the only thing my UK accountant will do is my PAYE and dividends and my Corporation TAX, VAT should go away.

Any advice welcomed, I've never contracted I Norway and its very confusing to me?

Tks

Graham

[flipFlop]

Why am I unattractive and uninteresting to the opposite sex?

and

Are there many gigs out there that pay expenses for non nationals or are they all at your own cost?

That's absolutely hilarious, NorthernLadYuk. It's the way you tell 'em. Laugh? I never even started.

[KentPhilip]

Do you regularly see Father Christmas? (during the non-christmas period I understand he lives in Norway)

[Mephisto]

Whale murderers, it rains all the time and they tax you 50%?

'I'm out' as the kids would say

JOKING - I've been to Norway (Bergen, Stanvanger and Mo i Rana randomly) and it's lovely...

[kevpuk]

Have to add my tuppence in here too, although more about Northern Europe in general.
My wife is Finnish and we have spent plenty of time there over the years.....taxes are high - scarily so, at times - but the system really seems to work. Hospitals treat you (properly), roads are maintained (properly), services actually work (properly) and the benefit system works (properly).
You pay your money, you get your value is very much the case, as opposed to, let's just say.....here!

[scope]

100% Norwegian myself. I agree, it is expensive, BUT, as the average salary is double that of UK it is not as bad as it sounds.. I come from a pretty normal family (with normal jobs) but I have never in my life seen the same standard as the poor suffer in the UK, everybody in my extended family had their own house (not owned by the council) (and most of them also own cabins/holiday homes in the forest/mountain), most of them had 2 cars in the household (you some times need this due to weather, distance, etc) in fact by the time I was 25 and left Norway I only knew of 1 person who was claiming benefits, and he was lazy as f%^k, and has since got a job.

If you get the opportunity to contract in Norway, go for it. (not for the money, but for the experience/nature)

[psychocandy]

thanks for the guide, interesting read, despite the high taxes I wouldn't mind a 1yr gig there, just experience the fjords and the great outdoors.

I did visit Norway last year, just 15 people on the plane, then I realised why, as you say bl00dy expensive. BK Whopper meal was an eyewatering £12

Like the motorway services then lol.

[chineseJohn]

thanks for the guide, interesting read, despite the high taxes I wouldn't mind a 1yr gig there, just experience the fjords and the great outdoors.

I did visit Norway last year, just 15 people on the plane, then I realised why, as you say bl00dy expensive. BK Whopper meal was an eyewatering £12

[kevpuk]

Which quarter?

Top left?

[jmo21]

I am one quarter Norwegian!

[psychocandy]

Read the first bit and worked out what 680NOK was and thought not bad. Then I read about under 50% retention. Not so good.