Editor’s note: This article was first published in April 2012, and its unemployment figures of 3.20% overall and 7.60% for under-25s, tax rates, the 30,000-kroner threshold, the 10.2% holiday pay and the residence rules are as of 2012.
Norway is one of the European countries with the lowest registered unemployment. It currently stands at 3.20% of the working population, although the highest figure is among young people under 25, at 7.60%. It is a country that opens its doors to professionals from every trade who want to join the Norwegian labour market.
Although Norway is outside the European Union, a CV and English are the only requirements to land one of the jobs on offer for carpenters, electricians, tractor mechanics, cooks, electrical engineers, systems engineers, piping design engineers and structural or structural calculation engineers, among others. To make up for the Norwegian cold, the wages are attractive.
The Schengen agreement
Although it does not belong to the European Union, Norway is part of the Schengen area, so any European can enter its territory with just a national identity card. This allows you to live and work there for six months without any additional permit, simply by presenting an employment contract to the police, and this permission can be extended.
To work there you need the European Health Insurance Card, which entitles you to treatment for common illnesses or workplace accidents abroad. The big difference is that Norway has co-payments in its public health system, so doctor’s visits have to be paid for. That money can be claimed back from Spanish Social Security by presenting the relevant invoices.
The tax card
The tax card is compulsory and takes some time to reach the applicant, so it is important to apply for it right away: while it is being processed, you can work but you cannot be paid your wages.
You only need to state how long you are going to work and your estimated earnings, although this figure can be recalculated as many times as necessary. It is used to calculate the tax rate you will pay, and adjustments are made in the country’s usual tax periods.
Opening a bank account is compulsory and free, in a country where banks charge no account maintenance fees. You can also request Netbank, online banking that lets you manage your balance in Norway over the internet and transfer it to Spain.
Taxes in Norway
Norway’s tax burden is well known: around 20% for a six-month stay with earnings of just under 4,000 euros. Pay below 30,000 Norwegian kroner, usually earned by students, is taxed at around 6 to 10%.
Holiday pay amounts to 10.2% of what you earned during the year, and you can claim back 10% of the tax paid as long as you stay for more than two years.
The usual advice is to declare lower earnings than your real ones, since Norwegian law allows you to change the figure as many times as necessary.
Benefits after working there
A Norwegian employment contract is recognized in Spain, so it counts towards unemployment benefit and retirement pension. The paperwork is handled by the Norwegian Labour and Welfare Administration.
Featured image: Edvard Munch; photo: Munchmuseet, Public domain, via Wikimedia Commons.
