The ultimate guide for managing Global Mobility in Norway

INTRODUCTION

Manage Global Mobility when relocating employees to Norway

When sending employees to work in Norway, it’s crucial to pay close attention to the many legal, administrative, and tax-related obligations that follow. Navigating immigration laws, tax regulations, social security rules, and employment requirements is essential to ensure a smooth and compliant relocation process.

Global mobility is complex, but in this page we provide a clear overview of the key steps and responsibilities involved in relocating your employees to Norway.

IMPORTANT RESOURCES

Key resources you should download

GLOBAL MOBILITY GUIDE

What are your legal obligations when sending employees to Norway? This comprehensive guide provides a full overview of what you need to know.

DOWNLOAD GUIDE

HIRING SKILLED WORKERS IN NORWAY

Hiring foreign workers in Norway? Download our guide to understand the rules, requirements, and how to stay compliant.

DOWNLOAD GUIDE

GLOBAL MOBILITY EXPLAINED

What is Global Mobility?

Global Mobility refers to the processes and support systems that you must use to relocate your employees to work in another country, regardless if it is short-term assignments, long-term relocations, international transfers, or remote cross-border work.

This includes legal, tax compliance, immigration and work permits, and social security ensuring employees can live and work legally and effectively in another country.

Typical scenarios that encounters when sending employees to Norway:

Cross-border assignments: Foreign companies seconding employees to Norwegian enterprises as project-based contractors.
Market entry operations: Foreign entrepreneurs establishing Norwegian limited companies and recruiting personnel to develop market presence.
International recruitment: Norwegian limited companies employing foreign nationals.

Who is covered by Global Mobility?

TRADITIONAL EXPATS

Employees sent abroad by their employer on a fixed-term assignment.

REMOTE EXPATS

Employees who work in one country while employed by a company in another.

ROTATIONAL ASSINGEES Employees moving between countries regularly for project-based work.

PERMANENT TRANSFERS Employees who are relocated indefinitely, often becomes local hires.

SHORT-TERM ASSIGNEES Employees on international assignments for less than 12 months.

COMMUTERS Employees who regularly cross borders for work but don't relocate fully.

VISA REQUIREMENTS

Depending on the employee's nationality and purpose of stay. Citizens of EU, EEA countries (including Iceland, Liechtenstein, and Switzerland) generally do not need a visa. However, for nationals outside these regions, visa obligations vary and should be assessed individually. Always confirm and secure the appropriate visa before travel to ensure legal compliance.

RESIDENCE PERMIT

In general, all foreign nationals need a residence permit to work in Norway, which requires a specific job offer and is usually valid for a limited period but can be renewed. EU/EEA citizens are exempt from this requirement but must register with the police if staying over three months. UK citizens now follow the main rule and need a permit. Some exceptions apply—for example, non-EU/EEA workers with valid permits in other EU/EEA countries may work in Norway temporarily on certain projects, and technical specialists performing short-term tasks (up to three months) may also be exempt under specific conditions.

Also read: Is a residence permit necessary when working in Norway?

CONTRACT CHAIN CONSIDERATIONS

The structure of contractual relationships can have a major impact on immigration processes. When a non-EU/EEA company secures a direct contract with a Norwegian client, its employees generally have a strong chance of obtaining work permits if they meet the necessary qualifications. However, if that company uses a subcontractor from the same or another non-EU/EEA country, it becomes much more difficult for the subcontractor’s employees to obtain permits—regardless of their individual qualifications.

Also read: Employee vs. independent contractor when working in Norway

02. GLOBAL MOBILITY

Employment agreements

A written employment contract is required for all employment relationships in Norway. For jobs lasting longer than one month, the contract must be prepared as soon as possible and no later than one month after the employee starts. For employment shorter than one month or involving temporary labor, the contract must be signed immediately. The agreement should clearly outline all key terms and conditions of the employment relationship.

Also read: Key considerations for drafting Norwegian employment contracts

03. GLOBAL MOBILITY

Net wage arrangment

When an employee is paid a net salary—meaning the amount is received after tax—this payment must be grossed up to calculate the correct taxable income. The gross-up must be based on the appropriate Norwegian tax table, and any taxable fringe benefits must be included in the calculation. The salary should be reported as net salary in the A-melding, the mandatory monthly report to Norwegian authorities.

It's important to note that, without a net salary authorization, any tax refund will be issued to the employee. To ensure the refund is paid to the employer instead, a signed net salary authorization must be submitted.

Also read: Expats in Norway—Navigating net salary arrangements with Hypotax

04. GLOBAL MOBILITY

Holiday entitlements and holiday pay

Employees working in Norway are entitled to holiday leave and holiday pay, but the rules can be complex and are sometimes misunderstood. As a general rule, employees who start work by 30 September are entitled to 25 working days of holiday leave, with many collective agreements offering five weeks. Holiday pay is based on the previous year's earnings—including salary and overtime—and is usually paid out in June, replacing that month’s salary. The minimum holiday pay rate is 10.2 %, increasing to 12 % where five weeks of leave is granted through collective agreements.

Also read: Calculation and payment of holiday pay in Norway

05. GLOBAL MOBILITY

Social security contributions

When foreign companies operate in Norway or send employees to work there, understanding the rules surrounding social security contributions is essential. Both employers and employees may be required to contribute to the Norwegian National Insurance Scheme, but international agreements—especially within the EU/EEA—can provide exemptions that significantly impact overall costs and obligations. This section outlines the key rules, contribution rates, and how tools like the A1 form or similar certificates can help companies and workers navigate social security requirements when working in Norway.

06. GLOBAL MOBILITY

Occupational injury insurance

In Norway, occupational injury insurance (yrkesskadeforsikring) is mandatory for all employers and serves to protect both the employee and employer in the event of a work-related injury or illness. Without this insurance, employers may be personally liable for substantial compensation claims. However, this requirement does not apply if all employees hold valid A1 forms and the employer is a foreign company, as they are exempt from Norwegian social security obligations.

07. GLOBAL MOBILITY

Occupational pension scheme

Employers in Norway are required to set up a mandatory occupational pension scheme (OTP) for all employees who are members of the Norwegian social security system. This includes contributing a minimum of 2 % of the employee’s salary (up to the applicable annual cap, NOK 1,488,336 in 2025). However, if an employee holds a valid A1 form and is not covered by the Norwegian system, this requirement does not apply.

08. GLOBAL MOBILITY

Assignment and Employment Register (OAR)

For project-based work in Norway involving foreign contractors, reporting obligations to the Assignment and Employment Register (OAR) are mandatory to ensure tax transparency. While this requirement does not apply to employees of Norwegian limited companies or to foreign employees working from home offices, it is essential for project clients to report assignments involving foreign companies. The OAR system enables clients and contractors to register assignments and employee details, ensuring compliance with Norwegian tax regulations.

09. GLOBAL MOBILITY

ID check

All foreign workers in Norway are required to complete an
ID verification process at a designated tax office. This step is crucial for obtaining an active D-number and a tax card, both of which are necessary for legal employment in Norway. Appointments forID checks should be booked in advance, ideally before the employee arrives in the country.

Required documents:

A valid passport
A completed RF-1209 form
Proof of employment in Norway (employment contract, job offer, or assignment confirmation)
A valid residence permit (if applicable)

10. GLOBAL MOBILITY

Tax card

All individuals working in Norway must have a tax deduction card, which determines how much tax should be withheld from their salary. Foreign workers, as a main rule, can choose between the PAYE scheme or standard taxation under the general tax rules. Employers—including foreign companies—are legally required to deduct and remit advance tax, even if they have no other business presence in Norway. Without a tax card, a default 50 % withholding applies. In the Nordic region, special rules apply under the Nordic Tax Withholding Agreement, which ensures that tax is withheld in only one country to prevent double taxation.

WHAT IS PAYE?

The PAYE (Pay As You Earn) scheme is a simplified, fixed-rate tax system for foreign employees working in Norway for short periods—typically fewer than 183 days in a 12-month period. Most new foreign workers are automatically enrolled in this scheme when applying for a tax deduction card. While PAYE offers a flat tax rate (25 % or 17.3 % if exempt from social security), it comes with restrictions based on income level and types of income. Because PAYE does not allow for deductions, in the same way the general tax rules do, and tax commuter expenses, it’s important to assess eligibility and tax impact before choosing or remaining in the scheme.

It is not applicable for offshore workers.

WHAT IS ORDINARY TAX CARD?

The ordinary tax card applies to foreign workers not using the PAYE scheme, and it is typically issued as either a tax table or a percentage-based card. Under this scheme, taxes are calculated based on Norwegian income and bracket tax rates, which vary with income levels. For individuals who are not tax residents in Norway, the bracket thresholds are adjusted based on the number of months spent working in the country, which can affect the total tax liability.

GENERAL TAX LIABILITY

Individuals who are tax residents in Norway are subject to global tax liability, meaning they must pay tax on worldwide income and assets, as defined in the Norwegian Tax Act § 2-1.

LIMITED TAX LIABILITY

Individuals who stay in Norway less than 183 days in 12 months or 270 days in 36 months have limited tax liability under Norwegian Tax Act § 2-3. This means they are taxed only on income earned in Norway.

12. GLOBAL MOBILITY

Tax treaties

As a general rule, salary is taxed where the work is performed—the so-called source state. To prevent double taxation, Norway has tax treaties with many countries, which may limit Norway’s right to tax certain income. Understanding how these treaties apply is crucial for both employers and employees. Typically, foreign employees hired out to work in Norway are taxed from day one, while those on short-term assignments for a foreign employer may often—but not always—be exempt from Norwegian taxation.

Also read: How to plan taxes and avoid Norwegian net wealth tax

13. GLOBAL MOBILITY

A-melding (A-report)

The A-melding (A-report) is a mandatory monthly salary reporting system in Norway, essential for employers to report employee income, tax deductions, and National Insurance contributions to the authorities. Its main goal is to streamline and centralize payroll, tax, and social security reporting, ensuring accuracy and efficient data sharing among public agencies.

Accurate and timely A-melding submissions are critical to maintaining compliance and avoiding penalties.

KEY POINTS

Employers must submit the A-melding through a payroll system or the Tax Administration’s A10 solution.
Reporting is only possible if the business has a Norwegian organization number.
The submission deadline is the 5th of the month after payouts, based on the cash-flow principle.
Frequent submissions are allowed, especially with multiple payout dates.

Tax payments are due bi-monthly, by the 15th of the following tax period.
Late or incorrect submissions can result in significant fines—currently NOK 127 per employee per day.
Employees in Norwegian limited companies should be registered in payroll systems that integrate with Altinn to ensure proper reporting.

14. GLOBAL MOBILITY

Norwegian tax return for employees

The Norwegian tax year runs from January 1 to December 31. The tax return must be submitted by April 30 of the following year.

The tax return provides an overview of your income, deductions, assets, and debts.

Foreign employees who are not part of the PAYE (Pay As You Earn) scheme are required to submit a tax return, even if they are not liable to pay tax in Norway.

EXIT TAX

Norway imposes an exit tax on individuals who relocate abroad after being tax residents, regardless of their nationality. This tax applies to capital gains on shares and financial instruments when a person emigrates, provided the net gain exceeds NOK 3 million. Prior to 20 March 2024, a lower threshold of NOK 500,000 applied, and some assets like share savings accounts were exempt. The exit tax covers gains on shares, options, mutual funds, and certain insurance products, including equivalent foreign assets. Taxation is triggered upon emigration, transfers abroad, deposits, inheritance, or loss of tax residency under a tax treaty. Those who lived in Norway for less than 10 years may use the market value at the time they became tax residents as the cost basis. Accurate self-assessment and disclosure of gains in the tax return are required, even if under the threshold, and failing to comply may lead to administrative consequences.

Where does the employee work?

If your enterprise has employees working from a home office in Norway, it is crucial to understand the potential tax liabilities that may arise.

Foreign enterprises conducting business activities in Norway are generally subject to Norwegian taxation on income generated from these activities under the Taxation Act. However, such income may be exempt from Norwegian tax if a tax treaty exists between Norway and the enterprise's home country. A crucial factor in determining tax liability is whether the enterprise maintains a permanent establishment in Norway, which may include a home office arrangement.

Also read: Do you need to report and pay tax to Norway?

DETERMINING PERMANENT ESTABLISHMENT IN NORWAY

A permanent establishment is a legal concept used to determine tax liability under international tax treaties. It exists when an enterprise has a fixed place of business through which it operates, typically requiring a specific location, a certain degree of permanence (usually over six months), and active business use. If these conditions are met—such as with a long-term home office setup—the enterprise may be subject to tax in Norway

HOME OFFICE AS A PLACE OF BUSINESS

An employee's home office may be considered the enterprise's place of business if it is effectively at the enterprise's disposal, which is assessed on a case-by-case basis. This may apply when no alternative office is provided and the home office is used long-term with the enterprise acknowledgment. Office space in the home country must be available and regularly used by employees to avoid this classification. While covering home office expenses can indicate disposal, it is not decisive, and an employee’s personal choice to work remotely does not affect the assessment.

EXCEPTIONS TO PERMANENT ESTABLISHMENT

A home office is not considered a permanent establishment if the employee’s work is merely preparatory or auxiliary to the enterprise's core activities. The employee authority to sign contracts is not a determining factor, and each case must be evaluated individually.

MAGNUS LEGAL BUSINESS LAW FIRM

Need help navigating Global Mobility?

Foreign companies often struggle with tight deadlines and complex regulations when sending employees to Norway, especially as small changes can impact outcomes.

Magnus Legal helps navigate these challenges by offering tailored advice, ensuring compliance with evolving laws, and reducing the risk of non-compliance—so businesses can focus on their core operations.

Here are more information about our Global Mobility services.

Our Global Mobility services:

Immigration and work permits
Tax services
Expat services
Employee and employer compliance
Legal and administrative support

THE ULTIMATE GUIDE FOR MANAGING GLOBAL MOBILITY IN NORWAY