International Employment Laws
14 mins read
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Published on:
Mar 28, 2025
Updated on:
Apr 1, 2025
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Talk to an expertBecoming an independent contractor in Norway can offer flexibility, autonomy, and a strong foundation for growing your career or business. But before you begin working with clients, there are a few essential steps to take.
First, you’ll need to formally register your entity and choose a legal structure that fits your goals. Then, it’s important to understand your tax responsibilities, including income reporting, VAT obligations, and social contributions. Finally, ensure that your operations are compliant with Norwegian regulations, including invoicing standards, legal contracts, and local labour laws.
Taking time to set everything up properly from the start will help you avoid debt, simplify tax return filings, and build a stable, professional reputation that supports long-term success.
The first step to operating legally is registering your business with the Brønnøysund Register Centre (visit Brreg.no) Norway’s official registry for business entities. If you're a Norwegian citizen or permanent resident, you’ll use your national identity number. If you're a foreign national without permanent residency, you’ll need to apply for a D-number, a temporary identification number used for tax and business registration purposes.
Registration is typically done online, and you’ll be asked to provide:
Once registered, you’ll receive a unique organization number, which acts like a business ID and is required to issue invoices, register for taxes, and open a business bank account.
Choosing the right business structure is crucial, as it impacts your tax rates, liability, and administrative responsibilities.
This is the most common and straightforward option for freelancers and contractors. It’s easy to set up, doesn’t require startup capital, and has low administrative overhead. However, it also means you are personally liable for any debts or legal issues related to your business. If you're a solo contractor providing services (consulting, design, writing, etc.), this is usually the best starting point.
If you plan to grow your business, take on significant financial risk, or hire employees, a limited company might be a better fit. It offers limited personal liability, meaning your personal assets are protected if the business encounters financial trouble. However, forming an AS requires NOK (Norwegian Kroner) 30,000 in share capital (USD 2,870), more extensive bookkeeping, and the need to file annual reports with authorities.
As a contractor in Norway, you are responsible for managing your own taxes as there’s no employer automatically withholding income tax for you. This means taking control of your finances is a must from day one.
Here’s what you’ll need to stay on top of:
You’ll need to estimate your annual income and pay tax in four installments over the year. Skatteetaten (the Norwegian Tax Administration) will guide you on payment dates and amounts after registration.
If your revenue exceeds NOK 50,000 (USD 4,784) in a 12-month period, you must register for VAT. Once registered, you’re required to charge 25% VAT on most services and submit periodic VAT returns. Some services may qualify for lower VAT rates or be VAT-exempt, depending on how they are defined, so it’s worth checking your industry’s rules.
Every year, you’ll submit a personal tax return that includes your business income and expenses. If you operate as a sole proprietor, this is submitted along with your individual income return. Accurate bookkeeping is essential here to ensure you’re paying the correct tax and claiming all eligible tax deductions.
Working as a contractor in Norway means you’re running your own business and with that comes a few legal responsibilities. You’ll need to register your business, track your income and expenses, submit taxes on time, and register for VAT if your income exceeds NOK 50,000 (USD 4,788).
Good record-keeping is key. You should keep copies of all invoices, receipts, and contracts. If you’re unsure about reporting or tax deadlines, it’s smart to work with an accountant or use digital tools. Staying organized early on will save you a lot of hassle down the road.
As an independent contractor, you wear many hats—including that of a legal entity. That means you’re responsible for everything from creating contracts to meeting financial and legal obligations.
Here’s what that typically includes:
Creating clear, written contracts with every client. These should outline payment terms, scope of work, deadlines, and rights to the final work product. Verbal agreements are risky—and often unenforceable.
Handling your own tax and social contributions. Unlike traditional employees, no one deducts tax on your behalf. You must manage advance tax payments, social security contributions, and VAT if applicable.
Avoiding misclassification. You cannot operate like a full-time employee under the guise of being “self-employed.” If you're being managed like staff—working set hours for a single client—it could trigger legal issues.
Carrying professional liability insurance. While not mandatory, it’s highly recommended—especially if you offer consulting, IT services, design, or legal or financial advice. This protects you if a client suffers losses due to errors in your work.
By treating your contractor role as a business, you protect both yourself and your clients, and you build credibility in the Norwegian market.
If you’re a contractor, it’s important that your working relationship doesn’t look too much like regular employment. For example, you should manage your own hours, use your own tools, and ideally work with more than one client.
Being treated like an employee, without the benefits that come with it, can cause problems for both you and your client. Norwegian authorities may reclassify your role, which could result in penalties, back taxes, and even legal issues. To stay safe, keep your business structure and working style clearly independent.
Missing tax deadlines, failing to register your business, or underreporting income can lead to fines and audits. In serious cases, your business activities could be suspended, or you may face legal action.
Fortunately, Norway’s systems are clear and well-documented. If you keep accurate records, file your taxes on time, and follow the rules, you’re unlikely to run into issues. When in doubt, talk to a tax advisor or consult Skatteetaten’s online resources to make sure you’re on track.
Getting paid on time starts with setting clear expectations upfront. Make sure your contract includes payment terms, due dates, and the exact amount owed. Always send professional invoices that meet Norwegian legal standards.
You should also communicate clearly with clients, confirm when invoices are received and follow up if payment is delayed. Using accounting software or invoicing tools can make the process faster and more organised.
In Norway, invoices must include key details to be valid. These include your name or business name, organisation number, client details, invoice number, date, payment due date, service description, and VAT (if applicable).
You can create your own invoices using templates, or use platforms like Fiken, Tripletex, or Conta for easier tracking and automation. These tools are built for the Norwegian market and are ideal for independent contractors needing to manage invoicing, tax reporting, and bookkeeping efficiently. If you're registered for VAT, make sure it's shown clearly on the invoice.
Always agree on payment terms before starting any project. In Norway, it's common to request payment within 14 to 30 days from the invoice date. You can also include late payment fees or interest to encourage timely payments.
Make sure your contract outlines when invoices will be issued, whether it's after project completion, in milestones, or monthly, and what happens if a payment is delayed.
Most clients in Norway prefer bank transfers to your local account. If you don’t have a Norwegian bank account, services like Wise or Payoneer can help you receive international payments at lower fees.
While PayPal is occasionally used, it’s less common for professional services. Always confirm the client’s preferred method early on and include your payment details on every invoice.
If your workload is growing and you’re ready to bring someone on board, there are a few things to think about before hiring. First, you’ll need to decide whether you want to hire someone as an employee or engage them as a subcontractor. Each comes with different responsibilities.
Hiring an employee means registering as an employer with NAV (Norwegian Labour and Welfare Administration), handling payroll, and following employment laws. It also involves paying employer contributions and deducting taxes. If that feels like a big step, consider using a payroll provider or Employer of Record in Norway to handle the admin.
What Are the Criteria for Hiring Employees?
In Norway, hiring someone as an employee means following a defined legal process. You’ll need to:
You must also contribute to their pension and insurance, and ensure the position meets minimum wage and safety standards (where applicable). The easiest way to stay compliant is to use accounting software or partner with a local HR or payroll provider.
Employee rights are well protected in Norway, and as an employer, you’re expected to follow all labor laws. This includes fair contracts, proper working conditions, paid vacation, sick leave, and parental leave where eligible.
Employees must receive written agreements, regular pay, and safe working environments. If you're hiring someone on-site or in a long-term role, it’s especially important to understand and follow the Working Environment Act (Arbeidsmiljøloven).
For clear guidance, check out Arbeidstilsynet’s official resources, which cover everything from employee rights to workplace obligations.
As a contractor in Norway, you're responsible for handling your own taxes. This means keeping track of income, making quarterly advance tax payments, and reporting your earnings accurately each year. You can register for tax and calculate your expected payments through Skatteetaten, the Norwegian Tax Administration.
Using accounting software or hiring an accountant can make this process much easier. Staying organised from the beginning will save you time, reduce stress, and help avoid mistakes when it’s time to file.
One of the advantages of being self-employed is the ability to deduct business-related expenses from your taxable income. This includes things like:
To claim these deductions, make sure to keep all receipts and records. The more accurate your documentation, the more confidently you can file your return—and the more you might save on taxes.
In Norway, personal and business income are reported together if you're operating as a sole proprietorship. The tax return is usually due by 31 May each year. You’ll receive a pre-filled return from Skatteetaten, which you need to review, edit (if necessary), and submit.
If you're unsure about any part of the process, don’t wait until the last minute. You can log in to Skatteetaten’s portal to check deadlines, make corrections, and get updates.
As a self-employed contractor, you pay into Norway’s National Insurance Scheme (Folketrygden), just like employees do. Your contribution is typically 10.9% of your net business income, and it’s included in your advance tax payments.
These contributions give you access to key benefits like healthcare, parental leave, and pensions—so while it’s a mandatory cost, it also supports your future security in Norway’s welfare system.
Norway offers a solid support system for freelancers and self-employed professionals. From government portals to small business hubs, there are plenty of tools to help you register, manage finances, and grow your work. Platforms like Altinn.no and Skatteetaten.no provide essential guides, forms, and deadlines to keep you compliant. If you're just getting started, these sites are your go-to sources.
Need help with accounting, legal questions, or setting up a company? Norway has a wide range of small business support services, both public and private. Local business centers and innovation hubs offer guidance for freelancers, while platforms like Innovation Norway provide advice, funding, and courses. For more hands-on support, you can also hire an accountant or bookkeeper who specialises in small businesses.
As a contractor, building relationships is key. Norway has a strong culture of professional networking, with events hosted by coworking spaces, local chambers of commerce, and industry-specific groups. You can also find meetups through platforms like Startup Norway, Mesh, and Impact Hub Oslo. Whether you’re looking for collaborators or clients, showing up (online or in-person) helps you grow faster.
Finding work is easier when you're visible in the right places. Norwegian freelancers often use platforms like Mittanbud for local service jobs, or global options like Upwork, Toptal, and Freelancer.com for international gigs. LinkedIn is also a powerful tool in Norway—keep your profile updated and actively connect with others in your niche.
Starting out as an independent contractor in Norway may seem overwhelming at first, but with the right information and planning, it’s entirely manageable and rewarding. From registering your business to managing taxes, issuing invoices, and staying legally compliant, Norway offers a well-structured environment that supports self-employed professionals.
Take time to get familiar with the systems, invest in proper tools or expert advice where needed, and keep your finances and paperwork organised from day one. Whether you’re freelancing part-time or building a full-time solo business, Norway gives you the legal structure, social safety net, and digital tools to succeed on your own terms.
Need support navigating global compliance while working independently or hiring across borders? Rivermate can help simplify the process—so you can focus on growing your work, not just managing it.
Yes. You must register with the Brønnøysund Register Centre, even for a sole proprietorship.
A sole proprietorship (Enkeltpersonforetak) is the simplest and most common option for independent contractors.
If your revenue exceeds NOK 50,000 (USD 4,756) in a 12-month period, you must register for VAT and submit returns regularly.
You’re responsible for paying advance tax four times a year and filing an annual return through Skatteetaten.
Yes. You can deduct costs like equipment, office space, travel, software, and accounting services.
Yes. You’ll pay around 10.9% of your net income into Norway’s National Insurance Scheme, which covers healthcare and pensions.
Clients typically pay via bank transfer. Always issue professional invoices with clear payment terms.
Yes, but you must register as an employer with NAV and follow all labor regulations, including tax deductions and pension contributions.
Legal Content Writer
Anri is a legal content writer specializing in clear, concise summaries of complex legal topics. He has served as a legal advisor within the Ministry of Justice of Georgia, particularly focusing on EU law and international litigation. His expertise includes creating legal content tailored for educational purposes and advising on European Union legal frameworks and International Public Law.
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