When UK citizens are seconded to work in Norway, a residence permit is generally required. While some exceptions may apply depending on the circumstances, this rule has important consequences for how businesses plan international assignments.
In this blog, we outline the key issues employers should be aware of before sending staff to Norway — including employment contracts, tax obligations, social security and A1 certificates, immigration and work permits, as well as reporting requirements.
What is a seconded employee?
A seconded employee is temporarily sent to work somewhere else whilst keeping their original job. This could be working in a different department within the same company or working for a completely different organization. The key point is that they remain employed by their original employer throughout the assignment. Companies typically use secondments for training purposes, sharing knowledge between teams, or completing specific projects.
Immigration and residence permit obligations for UK employees in Norway
Relevant permits for seconded employees
The main rule is that an employee in UK must apply for a residence permit, and he/she is not allowed to work until the permit is granted. Both the employee and the employer must ensure valid permits are in place.
There are two main categories of residence permits for seconded employees:
- International company employees on assignment to the Norwegian branch: This applies when an employee works for an international company and is being sent to work at the Norwegian part of the same company.
- Employees of foreign companies on assignment in Norway: This applies when an employee works for a company based outside Norway and is being sent to carry out work assignments in Norway for a different organization.
Also read: What is a temporary residence permit?
The following requirements related to the employment relationship apply to both alternatives:
- The individual must maintain an existing employment relationship with a company based outside Norway that has entered a contract with a Norwegian enterprise to carry out specific assignments in Norway.
- The Norwegian company receiving the services must have a registered business address in Norway and operate as a legitimate enterprise.
- The Norwegian company cannot be a staffing or recruitment agency.
- Generally, the work assignment must be exclusively for one Norwegian company, maintaining the integrity of the secondment arrangement.
Both categories require the individual to demonstrate skilled qualifications relevant to their work role in Norway (skilled worker).
Special requirements related to education/qualifications and salary
The Norwegian Directorate of Immigration (UDI) defines a skilled worker as someone who:
- Completed education or degree from a university/university college, or
- Completed a vocational training program of at least three years at upper secondary school level, or
- Obtained special qualifications/skills through extensive work experience. Generally, the individual must have at least six years of work experience.
- The qualifications as a skilled worker must be relevant for the work position.
- Pay and working conditions must meet Norwegian standards as a minimum. If the work is in an industry covered by a collective agreement, the salary must be compared against industry standards and cannot be below what is normal for that occupation. There are also minimum salary requirements that must be met:
- Those with a bachelor’s degree must earn at least NOK 522,600 per year (before tax)
- Those with master’s degree must earn at least NOK 599,200 per year (before tax).
Documents needed for the application
To apply for a residence permit as a seconded employee, you must submit the following documents:
- Personal information, passport, passport photo
- A contract between the Norwegian client and the foreign enterprise
- Employment contract
- CV
- Documentation of education and work experience
- Documentation that you have a place to live in Norway
- Offer of assignment form
- UDI signature form
- Document checklist
- Power of attorney (if using a representative)
Note: This is not a comprehensive list.
The application fee for a residence permit as a seconded employee is NOK 6,300, which must be paid when submitting the application to the UDI, and this fee is non-refundable regardless of whether the application is approved or rejected.
The processing time is minimum 8 weeks.
Employment relationship and contracts
Seconded employees must maintain their employment relationship with the foreign company whilst working in Norway but are still subject to Norwegian Working Environment Act protections and minimum standards. The foreign employer remains responsible for the employment contract and ensuring compliance with Norwegian regulations.
Norwegian authorities actively monitor for "social dumping" practices and can impose severe penalties on both the foreign employer and the Norwegian client company if employment standards are not met.
Company registration obligations
Generally, foreign companies conducting business activities in Norway must register with the Brønnøysund Register Centre.
Also read: Business in Norway—these are the reporting obligations
VAT obligation
Foreign companies with Norwegian sales exceeding NOK 50,000 over 12 months must register for VAT and charge the standard 25% rate.
Foreign companies hiring out personnel may not need Norwegian VAT registration as this constitutes a remotely delivered service, with the Norwegian client handling VAT through reverse charge mechanisms.
Tax obligations
- Personal taxation: Employees working in Norway are subject to Norwegian tax liability. Limitations may apply under tax treaties.
- Advance tax deduction: The employer must deduct advance tax for employees working in Norway.
Monthly salary reporting is mandatory through the A-report scheme. All remuneration related to Norwegian work must be reported on a cash-flow basis. - Norwegian corporate taxability: Foreign companies conducting business activities in Norway are subject to corporate tax. Limitations may apply under tax treaties.
Social security and A1 certificates
Foreign companies operating in Norway must generally pay employer social security contributions, whilst employees must pay social security contributions. UK citizens can avoid Norwegian social security contributions by obtaining an A1 certificate documenting membership in UK. When a valid A1 certificate is in place, both employer and employee are exempt from paying social security contributions to Norway.
Reporting requirements
Foreign companies must report assignments to the Norwegian Tax Administration. This reporting enables tax authorities to assess Norwegian tax liability for both the company and employees.
Summary
When foreign companies send UK employees to work in Norway as seconded workers, careful planning and compliance with multiple regulatory frameworks is essential. The key requirements include:
- Immigration Requirements: UK citizens generally need a residence permit before starting work in Norway.
- Employment Compliance: Seconded employees maintain their UK employment contracts whilst being subject to Norwegian working environment act protections.
- Business Registration: Foreign companies conducting business activities in Norway must typically register with the Brønnøysund Register Centre and may need VAT registration.
- Tax Obligations: UK employees working in Norway are generally subject to Norwegian personal taxation. Foreign companies may also face Norwegian corporate tax liability.
- Social Security: Both employers and employees must generally pay Norwegian social security contributions unless a valid A1 certificate is obtained.
- Reporting Requirements: Foreign companies must report assignments to Norwegian tax authorities to enable proper assessment of tax liabilities.
Successful secondments to Norway require early planning, proper documentation, and ongoing compliance monitoring to avoid penalties and ensure smooth operations for both the employee and the companies involved.