Investing in real estate in Norway may essentially be carried out in three different ways; (i) a direct investment in the real estate, (ii) a purchase of a tax-transparent entity, or (iii) a limited company.

The tax treatment and transaction costs will differ, and an investor should therefore always consider what would provide the most efficient structure for their investment.

Generally, most real estate transactions are carried out by purchasing a limited company (and in some cases a transparent entity) in order to avoid stamp duty (payable by the purchaser) and capital gains tax (seller). Stamp duty is only payable on transfer of title to or certain rights in real estate, and not on transfer of title to an entity holding real estate. As a consequence, tax attributes of the entity acquired are unchanged in most transactions, leading to pricing of deferred tax assets and liabilities being a topic to be considered.