CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. IMF Urges Norway To Reduce Real Estate Tax Perks

IMF Urges Norway To Reduce Real Estate Tax Perks

by Ulrika Lomas,, Brussels

11 September 2015

Norway should reduce tax benefits for the housing sector and instead use the tax system to incentivize productive investment, the International Monetary Fund (IMF) said in a recent report.

This would help redeploy new investment toward tradable industries that will need to replace oil- and gas-related industries as an engine of growth, the Fund said in its 2015 Article IV consultation report with Norway.

The report noted that the 2015 Budget included a reduction in wealth tax breaks for commercial properties and second dwellings. It also welcomed the recent recommendations of a Tax Commission to shift the tax burden toward indirect taxes and further reduce preferential tax treatment for residential real estate relative to other assets.

The IMF's Executive Director for Norway, Audun Groenn, said in a statement that "a continued low oil price will over time have a significant impact on Norway's national wealth and the room for maneuver in fiscal policy." However, he said that fiscal policy cannot be the main tool to deal with a decline in demand from the Norwegian petroleum sector.

Groenn also said that the Government is focused on lowering taxes that hamper productivity and economic growth. He said that the Tax Commission recommended a significant reduction in the corporate tax rate. The authorities will summarize their plans for future tax reform in a white paper to the Parliament this fall and will continue to reduce taxes in the coming years, he said.

However, the Executive Director said that a significant reduction in tax incentives for home ownership is not on the Government's agenda.

TAGS: tax | investment | economics | property tax | tax incentives | fiscal policy | budget | International Monetary Fund (IMF) | corporation tax | Norway | tax breaks | tax reform | Tax

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »