Factors to Consider When Contracting in Norway

Sending Oil and Gas workers to Norway?

Prepping workers for contracting in Norway and other parts of Europe can be tricky. Here are a few pointers to help! Before the tips, here is the low down on Norway. The country discovered oil and gas in nearby waters and has extensive reserves of petroleum and natural gas, making this an attractive place of work for professionals in the field. It holds the top spot for the world’s largest producer of oil and gas outside of the Middle East. Norway has always been a shipping nation and has one of the largest fleets in the world. Its hydroelectric plants generate about 99% of its electric power, which is more than any other country in the world!

You can see how rich the country is in resources and why this attracts specialist workers from all over the globe. So, what documents and processes are required to begin contracting in Norway?


If a worker is a citizen of an EU, EEA or EFTA country then they don’t require a residence permit to live in Norway, but they will have to register themselves. If planning to work for more than three months, registration must be carried out with the guidance of the Norwegian police. Workers must have a basis for residency and will need to prove that they will not be a burden to the public welfare service. If they are not an EEA national the worker should apply for a residency card. Residency cards are free of charge and are indefinite so no need to renew later on. After five years, EEA nationals can apply for a permanent right of residence. For those who are not EEA nationals, they can apply after three years, provided they have completed tuition in the Norwegian language.

EEA nationals do not need a work permit to be employed in Norway. Skilled workers not from the EEA who wish to come to Norway before they have been granted a residence permit can apply for an entry visa. They should have a concrete offer of employment from an employer in Norway in order to do so. Whilst the entry visa does not allow the worker to work in Norway it does allow them to stay whilst the residence application is being processed.

Income Tax in Norway

Getting to grips with the taxation system in a different country can be very daunting and Norway is certainly no exception with quite a complex taxation system but do not worry Futurelink are experts on working abroad and here to assist.

Norwegian tax on ordinary income is 22%, although for contract workers in the areas of Finnmark and Nord-Troms, this is 18.5%. If the contract duration exceeds 183 days, the worker is then classed as a tax resident of Norway and will have to pay tax on their worldwide income. If they do not reside in Norway for more than 183 days, they are not considered a tax resident and only have to pay tax on income earned in Norway. Before starting work in Norway, the worker must apply to the local tax office for a tax deduction card and this will be given to the employer.

Social Security

It’s always good for workers to be well prepared to ensure that they are abiding by the legislation rules. To speed up the process, workers may be asked to submit an A1/E101 form (if they are self-employed) to their national insurance department in their home country. If this is not done the worker will need to contribute 8.2% of their salary if they are an employee and 11.4% if they are self-employed. Usually, as an Employer, companies will pay 14.1% Contribution.

If the worker becomes a resident in Norway then they’re immediately entitled to healthcare benefits, there is no qualifying period, and this includes free maternity services and hospital care. Employed and self-employed are compulsorily insured for sickness cash benefits.

Paying Workers Overseas

Here at Futurelink, we can pay workers in a number of currencies including Euros, Dollars and Pounds, which reduces the likelihood of bank charges as well as conversion to a second currency. Most contract workers going overseas favour our Gross Payment Solution. It means they are not taxed at source and avoid paying too much tax. Typically, workers pay tax in the country they are deemed resident in.

We hope that you have a clearer idea of the reasons and benefits of contracting in Norway as a working professional, and the processes required to make the move over there.

If you would like more information on our services, please feel free to give us a call at 01923 277900 or you can email us at sales@futurelinkgroup.co.uk.