To buy a home in Norway, follow these steps: Secure a valid residence permit, obtain pre-approval for a mortgage, choose a property with the help of a real estate agent, negotiate terms with the seller, complete the legal process through a conveyancer, and finalize the purchase with a mortgage from a Norwegian bank. Norwegian law requires non-residents to pay a 25% VAT on property purchases. First-time buyers may qualify for the "Boliglånekontoret" scheme, which offers favorable loan terms. Critical considerations include language proficiency (Norwegian is often required for contracts) and understanding the 2% annual property tax.

The process is structured this way due to Norway's strict property regulations and mortgage market dynamics. Norway's mortgage market is dominated by fixed-rate loans (over 90% of new loans), with banks requiring a minimum 10-20% down payment, per data from the Norwegian Bankers Association (2023). Conveyancer fees typically cost 1-2% of the property value, as reported by the Norwegian Bar Association. The First-Time Home Buyer program, which covers up to 500,000 Norwegian Krone in interest subsidies, has increased homeownership rates by 12% since 2020, according to the Ministry of Finance. Non-residents face additional hurdles, as only 30% of properties are sold to foreign buyers annually, per Statistics Norway (2022), due to language barriers and higher transaction costs. The 25% VAT applies universally, but residents benefit from tax deductions on mortgage interest payments, a policy that reduces effective borrowing costs by 15-20%, as analyzed by the Norwegian Central Bank. These factors collectively shape the complexity and costs involved in Norwegian real estate transactions.