Freelancing in Norway: taxes, rates and error-free invoices (2025 guide)

The northern economy is flexible. In Norway, over 375,000 people sell services as self-employed people or through 'one-day' contracts. The rules are simple but not obvious. You must pay via Altinn instead of a cash register. You will be charged double taxation (22% + 11.2% trygdeavgift). You must use 'mandatory' electronic invoicing (EHF). There is a VAT threshold of 50,000 kr. Below are 10 detailed questions and answers to help you start freelancing without penalties or losing money.

What do I need to do to set up a sole proprietorship, and how much does it cost?

Registering an ENK through Altinn 'Samordnet registermelding' is free and takes 10 minutes. You will need a BankID and a Norwegian address. Two days later, Brønnøysund will link your Org.nr (9 digits) to your personnummer. If you need a secure 'bekreftet firmaattest' (certified company registration), you pay NOK 3,362 to Foretaksregisteret (the registry of companies), but only if your company makes more than NOK 5 million a year or if you are going to sell goods. ENK does not need authorised capital, and income and debts are mixed with personal ones. If you want to protect your property, you should open an AS. This will cost 30,000 kr in capital, and 6,000–8,000 kr for a lawyer. Most creative freelancers choose ENK because it's quick and easy to use, and you don't need an accountant.

What taxes do freelancers pay, and how are they divided?

ENK income is taxed in three ways:

1) A flat tax of 22% is applied to the minimum income.

2) A progressive tax is applied to the rest of the income, ranging from 1.7% to 16.6% of the bracket from 237,900 kr.

3) An additional 11.2% is paid to the NAV pension fund instead of the usual 8.2%. For example, if you make 800,000 kr, you will pay tax at a rate of 36% on the profit. This means you will pay 288,200 kr in tax. The tax is made up of 176,000 kr, 22,600 kr and 89,600 kr. You must pay in advance four times: 15 March, 15 June, 15 September, 15 December. If you forget, you will be charged 10% of the amount plus Riksbank interest. The tax reduces the ENK-pensjon deduction (up to 7% of income) and expenses (laptop, licences, home office 1,800 kr/year).

When and how do I register for VAT (MVA)?

To qualify, you need to make at least 50,000 kr in a 12-month period. If you exceed this limit, you must submit a 'Søknad om mva-registrering' (application for MVA registration) and add 'Org.nr + MVA' to your invoice. The standard rate is 25%, which is the same for creative services (design, consulting). You charge VAT to the customer (output VAT) and then deduct the VAT paid on expenses. The 'MVA-oppgave' report is submitted twice a year for businesses with a turnover of less than 1 million kr. If you miss the deadline (10 February/10 August), you will be charged a penalty of 59 kr/day for up to 50 days. Here's a handy tip: if most of your customers are from abroad, you'll pay no export tax, but you can still get your input VAT back — that's a win-win!

What are the 'right' hourly rates and where can I find examples?

The NGO (Norsk Grafisk Organisasjon) and Tekna publish a guide to recommended salaries every year. In 2025, the recommended salary for a senior developer was 950 kr/hour, for UX design 690 kr/hour, and for translation 550 kr/hour. The minimum for 'håndverk' is 530 kr. Formula: (The amount you want to earn ÷ 1.5) × 1000 hours + 25% of your expenses. If you have worked less than three years, the rate will be reduced by 15%. If you have been employed for longer, the rate will be reduced by 10%. Beginners often make a mistake when they set the employee's rate (400 kr). They forget to add tax and holiday pay. This means the net pay is less than that of a Kiwi cashier. Check on Tekna‑kalkulator: if you earn less than 600 kr, you'll rarely earn more than 55,000 kr after taxes each year.

How to invoice: EHF, eFaktura or PDF?

From 2024, the government and 75% of companies will only accept EHF 3.0 (PEPPOL BIS Billing). First, you need to create a free account on Fakturabank or Flyt EHF. Then, enter the customer's Org.nr and send it via PEPPOL ID. If you are a small private customer, you only need a PDF invoice with a KID number. You can get a KID number using Altinn. The 'Betalingsfrist' field must be set to at least 14 days. You must have a contract before you can set ' forskuddsbetaling 100%'. The Norwegian law on buying things says that customers can keep some of the money. The Vipps eFaktura barcode is linked to your Org.nr — commission 2.4% + 2 kr; good for paid web designers.

What do you need to include in a written contract, and what are the most important things?

The 'Oppdragsavtale' template from Virke has nine paragraphs: scope of work, rate/pauschal, revisions (usually two), deadlines, force majeure, IP rights, MVA, confidentiality, termination with 30 days' notice. The most important thing to know about 'Work for Hire' is that the customer gets all the rights after they have paid in full. If you don't, you have to redo the work for free until the customer is happy (Borgarting 2019 case law). Don't forget the 'purring' fee. If you pay late, you will be charged an extra 35 kr. The interest rate is 10.25% per year. There is a problem here: the word 'tilleggsarbeid' has not been included. This means that the customer will add features without paying for them.

Do I need to open a business bank account and how much does it cost?

DNB 'Bedrift Enkelt' — it doesn't cost anything to open the account, but there's a 70 kr service fee each month. For Vipps bedrift, there's 1.75% of the transaction amount. SpareBank1 'Start' — 59 kr/month, free for the first 50 payments. The tax office allows you to use a personal account, but with MVA registration, it is recommended that you keep your accounts separate to avoid extra 'antatt privat' charges. How to save money: Open a Revolut Business debit card — it costs €7/month, but there is no charge for SEPA payments for fonts and servers. However, some customers block foreign IBANs, so it's best to check in advance.

What should I do about my own holiday, sick leave and pension?

ENK does not pay sick pay for the first 16 days. You can purchase 'Frivillig sykepenge-forsikring' NAV — a contribution of 2.3% of your income, with 80% paid from the first day. Pension: IPS Privat deducts 22% tax up to 15,000 kr/year, or Pensjon for selvstendig — pay up to 7% of your income without tax now. To work out holiday pay, just calculate 10% of the usual rate. So, for example, if the usual rate is 900 kr, the new rate becomes 810 kr. This is because 10% of 900 kr is 90 kr, and 10% of 810 kr is 81 kr. If freelancers don't have three months' worth of work, they might run out of money if they get sick for two weeks.

What are the three most common mistakes that freelancers make that lead to fines from Skatteetaten?

1) 'Privatuttak = 0' – if you withdraw money without making a transaction, the tax authorities will treat this as a salary and add 14% 'arbeidsgiveravgift' (employer's contribution). 2) If you miss the MVA threshold, you will be penalised. The penalty is 20% of the VAT you did not pay. This can be applied retrospectively for up to five years. 3) Incorrect Skattekort code — the first client will withhold 50% of the money, but the liquid will be lost. Here's another mistake to avoid: make sure you keep hold of your receipts for less than five years. This is because, if you don't, any expenses you've claimed will be removed and you'll have to pay more tax.

When should you switch to AS instead of ENK?

If your income is more than 1.5 million kr or your net profit is more than 600,000 kr, the effective ENK rate (tax + trygdeavgift) will be 42%. With AS, you only pay 22% income tax and 36.6% dividend tax on payments. If you leave your profits in the company, you won't pay tax on them. This means you could save 70–90,000 kr/year. The disadvantages are as follows:

- An audit for turnover of more than 7 million kr (approximately 25,000 kr per year)

- Double reporting (a-melding + skattemelding AS + privat)

- An accountant costs 12,000 kr. It is useful for an average designer after they have hired three contractors or if they need limited liability.

If you want to work for yourself in Norway, you need to know the rules. We opened an ENK in 10 minutes, set a rate that covers 22% tax and 11.2% pension contributions, and exceeded 50,000 kr. This included MVA, sending EHF via Altinn, and setting aside 10% for a cushion and IPS. Add a contract that's fair, a bank account with no hidden fees and NAV insurance, and the 'work when I want' model becomes a sustainable business. The most important thing is not to think that your time is worth less than it is. Norway respects qualifications and is willing to pay if you remember the figures and deadlines of Skatteetaten. Then the free northern air will fill not only your lungs, but also your bank account.