Cost of Living in Norway
High salaries offset some of these costs, as well as the public services offered by Norway's welfare state. It is a good idea for expats to recalculate their budget for Norway, and to look at a cost of living index, such as xpatulator.com, in order to gain a better idea of comparative costs of specific goods and services.
Due to the egalitarian social system in Norway, the margin between low and high salaries is narrow. You may find that due to the tax structure, you won’t have much more disposable income than someone working in a trade such as plumbing. Making more money is not necessarily as advantageous, when you end up paying higher taxes on that income. It is also challenging to save money in the short-term, and unless you have a good expat relocation package, you may find that you will need two incomes to survive.There is very little that is considered “cheap” in Norway when compared to European prices. Fresh fish and shrimp is reasonable, but most food is imported into the country, so there is a 14% VAT on food items. That is why many Norwegians drive over the border to Sweden on a harrytur, which is basically a shopping-trip to stock up on food staples at 20% less cost. This cross-border industry is so big that several shopping centres have been built just over the border to accommodate Norwegian consumers.
Housing is expensive in Oslo, but gets cheaper the farther you go from the city. Housing is affordable outside of the capital, if that is any consolation. Owning a home provides several tax benefits, so if you can afford it, and plan to stay in Norway long-term, this is the way to go. Cars are very expensive as well, as is entertainment, eating out and travel inside the country. However, it can be very cheap to fly out of Norway on charter trips, so Norwegians take advantage of this opportunity, and can be found at any sunny and warm destination in the world, especially during the cold months of October through to April.
According to The Economist’s Big Mac Index (2009 figures), a Big Mac in Norway cost 40 NOK, or over 6 USD. That means it’s 72% overvalued! A fast food meal (per person) costs upwards of 50 NOK.
When eating out, expect to pay between 50 and 100 NOK for a cheap meal (not including drinks or dessert), and for dinner, at least 150 NOK for a dish and 200-300 NOK per dish at a nicer restaurant. Alcohol brings up the cost significantly. A glass of beer (varies between 0.33 and 0.5 litres) costs between 45 and 80 NOK, and wine will cost at least 65 NOK. Tips are not expected in restaurants, as a service charge is normally included in the price. However, it is normal practice to leave a few krone for particularly good service. You will find that in Norway, you don’t eat out as much as you would elsewhere. Outside of the main cities, there aren’t that many dining choices, anyway.
