- Purchase the complete Expat Arrivals Norway Guide (PDF)
The cost of living in Norway is high, but there is some consolation for expats in that high salaries offset some of these costs, as do the public services offered by Norway's welfare state. Expats should carefully calculate their budget for Norway before moving, and take a look at a cost of living index to gain a better idea of comparative costs of specific goods and services.
Oslo, Norway's capital city, ranked 76th out of 209 countries in Mercer's Cost of Living Survey for 2020. But while many things are expensive in Norway, the social benefits such as education and healthcare make up for it.
In Norway's egalitarian social system, the margin between low and high salaries is fairly narrow. Executive-level expats may find that, due to the tax structure, they won’t have much more disposable income than someone working in a trade. Making more money is not necessarily as advantageous when someone ends up paying higher taxes on that income. It is also challenging to save money in the short term, and unless new arrivals have secured a good expat relocation package, they may find that they will need two incomes to get by comfortably.
Cost of food in Norway
There is very little that is considered 'cheap' in Norway when compared to other European prices. Expats from countries with a low cost of living may be overwhelmed at first when comparing prices to their home country. On an expat stint, it's often best to compare prices against one's earnings rather than against costs elsewhere.
Fresh seafood is generally reasonably priced, but most food is imported and there is a high VAT charge 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 a much lower cost. In fact, this cross-border industry is so big that several shopping centres have been built just over the border to accommodate Norwegian consumers.
Cost of housing and transport in Norway
Housing is expensive in Norway, but gets cheaper the further one travels from the larger cities, and accommodation is certainly more affordable outside of the capital. In cities such as Bergen and Fredrikstad, for example, rent is much cheaper than in Oslo. Owning a home provides several tax benefits, so if someone can afford it and they plan to stay in Norway long term, this is the way to go.
Cars are expensive as well, as are entertainment, eating out and local travel. However, it can be cheap to fly out of Norway on budget airlines and charter trips. Norwegians frequently take advantage of this opportunity and can often be found at any sunny and warm destination in the world, especially during the cold months from October through April.
Cost of living in Norway chart
Prices may vary depending on product and service provider. The list below shows average prices in Oslo for January 2021.
Accommodation (monthly rent) |
|
One-bedroom apartment in the city centre |
NOK 13,000 |
One-bedroom apartment outside of the city centre |
NOK 10,000 |
Three-bedroom apartment in the city centre |
NOK 20,000 |
Three-bedroom apartment outside of the city centre |
NOK 16,000 |
Shopping |
|
Eggs (dozen) |
NOK 39 |
Milk (1 litre) |
NOK 18 |
Rice (1kg) |
NOK 26 |
Loaf of white bread |
NOK 30 |
Chicken breasts (1kg) |
NOK 127 |
Pack of cigarettes (Marlboro) |
NOK 135 |
Eating out |
|
Big Mac Meal |
NOK 110 |
Coca-Cola (330ml) |
NOK 30 |
Cappuccino |
NOK 43 |
Local beer (500ml) |
NOK 90 |
Three-course meal for two at a mid-range restaurant |
NOK 900 |
Utilities |
|
Mobile-to-mobile call rate (per minute) |
NOK 0.90 |
Internet (uncapped ADSL or cable – average per month) |
NOK 455 |
Basic utilities (per month for small apartment) |
NOK 1,300 |
Transport |
|
Taxi rate (per kilometre) |
NOK 14 |
Bus/train fare in the city centre |
NOK 37 |
Petrol (per litre) |
NOK 16 |
Further reading
►For more on expat money matters see Banking, Money and Taxes in Norway
Expat Interviews
"I find that most things here are expensive – my main gripe is food, because I love to fill the refrigerator with lovely things. But if you are local, you know when to buy things: when they're on sale!" For more on an expat's experience of living costs, read our interview with Laura.
"It is much more expensive here compared to the UK, but then wages are much higher so I would say that it evens out." Read more in our interview with Selina.
Are you an expat living in Norway?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to Norway. Please contact us if you'd like to contribute.
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