Cost of Living in Norway

The cost of living in Norway is high, but 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 to gain a better idea of comparative costs of specific goods and services.

Oslo, Norway's capital city, ranked 76th out of 209 countries in Mercer's Cost of Living Survey for 2020. But while many things are expensive in Norway, the social benefits such as education and healthcare make up for it.

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 get by comfortably.

Cost of food in Norway 

There is very little that is considered 'cheap' in Norway when compared to other European prices. Expats from countries with a low cost of living may be overwhelmed at first when comparing prices to their home country. On an expat stint, it's often best to compare prices against one's earnings rather than against costs elsewhere.

Fresh seafood is generally reasonably-priced, but most food is imported and there is a high VAT charge 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. In fact, 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, and accommodation is certainly more affordable outside of the capital. In cities such as 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 expensive as well, as is entertainment, eating out and local travel. However, it can be cheap to fly out of Norway on budget airlines and 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 September 2020.