Formuesverdi
Formuesverdi is the value that Skatteetaten (the Norwegian Tax Administration) sets for a home and uses as the base for wealth tax. It is a standardised calculation that sits well below the real market value, and it is not a survey-based valuation: the figure comes out of a formula based on public data about the home and price statistics for the area.
The formula is simple in principle. Skatteetaten multiplies the home's usable floor area by a square metre rate from the housing price statistics of SSB for the municipality and the housing type, then uses a percentage of this expected market value as the formuesverdi. For the 2024 income year, the percentage is about 25% for a primary residence (the home you live in) and 100% for a secondary residence (rental homes and holiday flats held as an investment). Particularly expensive primary residences have an additional rate above a threshold amount. Always check the up-to-date pages from Skatteetaten for the exact percentages and thresholds for the current year, as these are adjusted regularly through the national budget.
The calculation model was introduced in 2010 and has been refined since. The model links housing type (detached house, small house, flat), year of construction, area and the municipality to the price statistics from SSB. The result is called calculated market value in the tax return. The formuesverdi comes out as a set percentage of this. If you believe the formuesverdi exceeds the actual market value, you can ask for a reduction by submitting a takst (surveyor's valuation), a property valuation or an e-takst. The reduction follows the rules in section 4-10 of the Tax Act: for a primary residence the cap is 25% of the documented market value, for a secondary residence 100%.
Formuesverdi is not the same as ligningsverdi (the old name, used up to the 2010 income year), the property tax base (a municipal standard calculation or a separate takst) or market value. You can meet all four figures in the same document, and they will typically be different amounts. The confusion grows because some kommuner choose to use the Skatteetaten wealth-tax base as the basis for property tax on homes (with a mandatory reduction factor set nationally), while others carry out their own municipal valuation. Banks use formuesverdi for nothing at all; they base the lending value on an e-takst, a takst or a property valuation.
If you own a holiday home, it counts as a secondary residence, but has its own, milder standard calculation (typically a lower square metre rate). Commercial property is valued on a yield basis, not by the formula for homes.
Formuesverdi is public information and appears in several places beyond the tax return. Banks may ask for it with certain applications (but, as noted, do not use it as a value estimate themselves); municipal support schemes such as housing benefit and some social assistance assessments look at the wealth-tax base; and in estate and inheritance settlements the formuesverdi is often used as a reference point between heirs until a takst or a property valuation gives a more precise figure. When a kommune has introduced property tax on homes, it can choose between its own municipal valuation and use of the Skatteetaten wealth-tax base (with a mandatory reduction factor of 30% as of 2024, to adjust for the fact that the standard calculation can be unfair for some homes; check Skatteetaten for the current rate).
In Placepoint, the Property panel lets you pull matrikkel information on building type, usable floor area and year of construction, which are the same parameters Skatteetaten uses in its formula. That makes it easier to check whether the formuesverdi in the tax return looks reasonable compared with the actual property data.
How it looks in Placepoint
In Placepoint you find this in the Property panel:
From Placepoint's dictionary: Formuesverdi
More information: Skatteetaten: Bolig og eiendom, Lovdata: Skatteloven § 4-10, SSB: Boligprisindeks
English: Tax-assessed property value (Norwegian wealth-tax base, set by Skatteetaten).
Frequently asked questions
What is formuesverdi?
Formuesverdi is the value Skatteetaten calculates for a home and uses as the base for wealth tax. It is based on a standard calculation and normally sits well below the real market value.
What is the difference between a primary and a secondary residence?
A primary residence is the home you actually live in. A secondary residence is a rental home or a holiday flat held as an investment. Secondary residences have a considerably higher percentage in the formuesverdi than primary residences.
Can I appeal against the formuesverdi?
Yes. If you believe the value exceeds the actual market value, you can submit a takst, a property valuation or an e-takst and ask for a reduction. The rules follow section 4-10 of the Tax Act and require a documented market value.
Is formuesverdi used for a mortgage?
No. Banks use an e-takst, a takst or a property valuation, not the formuesverdi. Formuesverdi matters only for tax and for some social benefit calculations.
How do I find the formuesverdi?
It is stated in the tax return under the entry for the home. Skatteetaten also has a calculator at skatteetaten.no where you enter housing type, municipality, area and year of construction to calculate the expected formuesverdi.