Cost of Living in Norway

The cost of living in Norway is high. 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. It is a good idea for expats to carefully calculate their budget for Norway, and to look at a cost of living index 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. 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 they have secured a good expat relocation package, new arrivals may find that they will need two incomes to survive.

Cost of food in Norway 

There is very little that is considered “cheap” in Norway when compared to other European prices. Fresh fish and shrimp is reasonable, but most food is imported and there is a 15 percent 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 a much lower cost. 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. Housing is more affordable outside of the capital. In cities like 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 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. Norwegians take advantage of this opportunity and can 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 for Oslo in October 2019.