Employees abroad or foreign employees in Norway – what applies?

Tax, social security, employer's contributions and reporting have to be assessed separately – they do not always give the same answer. An A1 decides which country's social security rules apply, and continued Norwegian membership normally means continued Norwegian employer's contributions. For foreign employees in Norway, PAYE withholding tax is 25% in 2026, or 17.4% with an exemption from Norwegian national insurance, with an income limit of NOK 725,050.

Four questions to keep apart

In cross-border work, tax, social security, employer's contributions and reporting have to be assessed separately. An employee can be taxable in Norway without being in the Norwegian social security scheme, or in the scheme without being taxable here. That is not a fault in the system – they are two different sets of rules with different criteria. This article is about the employee crossing the border. Where a foreign company is to establish itself here, with registration, permanent establishment, VAT and a NUF, that is covered in A foreign company setting up in Norway

183 days is not an answer on its own

For Norwegian employees abroad the 183-day rule is only part of the test. In many tax treaties several conditions have to be met at the same time, including who the employer is and whether there is a permanent establishment in the country of work. Staying under 183 days therefore gives no automatic protection from tax liability in the country of work.

The one-year rule

On a continuous period of work abroad of at least 12 months, the one-year rule can reduce Norwegian tax on the foreign salary. That is not the same as emigrating for tax purposes, and it gives no exemption from national insurance contributions. The person can therefore have reduced tax and still pay Norwegian contributions. Where the person is actually going to emigrate, that is a different set of rules – see Exit tax

An A1 documents social security, not tax

An A1 documents which country's social security rules apply – nothing else. A Norwegian A1 normally means continued Norwegian membership. A foreign A1 can document that another country's scheme applies. Where someone works in several EEA countries, the 25% rule in the country of residence can be decisive for where they belong. Continued Norwegian membership normally means continued Norwegian employer's contributions – see Employer's national insurance contributions. That link is what makes the A1 a payroll document and not only a social security one.

Foreign employees in Norway: tax from day one

Work in Norway can create Norwegian tax liability from day one. A tax treaty can limit that, but in a hired-labour arrangement Norway can have the taxing right from the first working day regardless. Tax residence in Norway arises at more than 183 days in 12 months or more than 270 days in 36 months. That is a different test from liability on the work itself.

Tax cards and the 50% deduction

A foreign employee normally needs a Norwegian tax card. Without a tax card or an exemption, the employer normally has to deduct 50%. That often hits short engagements where nobody has had time to obtain a D number and a tax card before the first payroll. So sort it out before the start, not after.

PAYE withholding tax in 2026

The PAYE scheme is a simplified tax arrangement for employees who are not tax resident in Norway. Ordinary rate: 25%. With an exemption from Norwegian national insurance: 17.4%. Income limit: NOK 725,050 in 2026. Where the employee earns more, the scheme falls away and ordinary tax rules apply. The scheme is voluntary, and the employee can opt out. The tax is deducted at payment, and the employee normally has nothing further to do.

The right to work in Norway

EU and EEA citizens follow the EEA rules. Citizens from outside the EU and EEA normally need the relevant residence and work permit before they start. That is an immigration question, not a payroll one, but it has to be settled before the employment begins. Salary cannot be reported on an employment that could not lawfully have started.

Engagements with foreign contractors

Where the business gives an engagement to a foreign contractor to be carried out in Norway or on the continental shelf, it can be reportable to the Register of Assignments and Employment Relationships (OAR). The client reports the engagement, and the foreign contractor reports the workers. Engagements with agreed consideration under NOK 20,000 are among the exceptions, along with cabotage, engagements given by private individuals and engagements on Svalbard. The deadlines and who in the contract chain has to report are covered in A foreign company setting up in Norway – check them with Skatteetaten before the first filing, since the deadline rules have changed in recent years.

Advance deductions from 2026

Norwegian advance tax deductions are paid directly to Skatteetaten by the first working day after the salary payment, for foreign employees too. The tax withholding account is gone from 1 January 2026, and that applies whether the employer is Norwegian or foreign – see A monthly checklist for the payroll run We can handle the Norwegian payroll reporting and coordinate the Norwegian obligations in cross-border work. Assessments of tax treaties, social security membership in complex cases and residence permits should be done with a specialist.

This is general guidance, not advice on your specific case. Deadlines, rates and amounts change – always check the current rules, or get in touch with us.

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