Why is Norway so expensive?
The main reasons behind Norwegian prices, with official figures.
Short answer
Norway is expensive because wages, costs and taxes are high, while import protection and excise duties raise the prices of food, alcohol and tobacco. Statistics Norway found household prices 28.6 per cent above the EU average in 2025. The standard VAT rate is 25 per cent, and alcohol and tobacco cost more than twice the EU average.
Why
- Norges Bank cites a government white paper on grocery chains which found that the wage, cost and tax level in Norway is high.
- High tariffs, target prices, regulated wholesale prices and import protection shape Norwegian food prices and limit competition from international chains, according to Norges Bank.
- Statistics Norway attributes alcohol and tobacco prices of more than twice the EU average largely to Norway's high excise duties.
Details
VAT is 25 per cent on most goods and services, 15 per cent on food and 12 per cent on passenger transport, accommodation and cinema tickets. The gap with Europe has narrowed: Norwegian food prices were about 80 per cent above the EU average in 2012 and close to 30 per cent above it according to Norges Bank's latest comparison. Energy is the only one of 35 price groups where Norway is below the EU average.
Tip
Buy drinks in grocery shops and cook some meals yourself: Visit Norway lists NOK 35–50 for half a litre of beer in a shop against NOK 100–140 for a bottle in a bar.
What may differ
How expensive Norway feels depends on your home country and the exchange rate. Iceland, Switzerland and Denmark all had higher overall price levels than Norway in 2025.
Common misconception
Everything in Norway is more expensive than elsewhere in Europe.
What actually happens
Energy is cheaper than the EU average: it is the only one of 35 price groups where Norway was below the average in 2025, according to Statistics Norway.
People also ask
- What makes Norway so expensive?
Sources
- Statistics Norway: Norway is still among Europe's most expensive countriesChecked at:
- Statistics Norway: Comparison of price levels in EuropeChecked at:
- Norges Bank: Food prices in Norway and abroadChecked at:
- Norwegian Tax Administration: VAT ratesChecked at:
- Visit Norway: Is Norway expensive to visit?Checked at:
Prices change, so check Statistics Norway (SSB) before you go.
10 ways to spend less in NorwayRelated questions
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How much does a theatre ticket cost in Oslo?
A ticket at the Norwegian Opera or Oslo Nye Teater costs between NOK 195 and NOK 995 in autumn 2026, depending on the production, seat and discount.
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What can you do for free in Tromsø?
Free things to do in Tromsø include climbing the Sherpa steps, walking around Prestvannet and visiting Telegrafbukta beach, where the northern lights can be seen on clear winter days.
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Why is food so expensive in Norway?
Food in Norway costs 33 per cent more than the EU average, partly because import tariffs protect Norwegian farming and three grocery groups dominate the market.
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Is skiing in Norway expensive?
Downhill skiing in Norway costs several hundred kroner a day: an adult day pass is NOK 540 at Skimore Oslo and from NOK 529 at Hafjell.