I have previously written about how to finance home buying in Norway. With this blog article I would like to provide some additional information to make the picture complete.
As informed, it’s not possible to get a loan from a Norwegian bank unless you have a D-number from the tax authorities and receive your income in Norway.
If you have the funds to finance the entire purchase, everything becomes much easier.
However, it’s not that simple. You may bump into some problems during the bidding round:
When bidding for a property, the real estate agent wants confirmation that you can finance the offer. Ideally, they would like this confirmation from a Norwegian bank. However, it’s not straightforward because Norwegian banks require you to have a D-number from the tax authorities to open a bank account. No matter which bank you inquire with, you will receive the same response: no bank account without a D-number.
This position seems to be a bit of a “catch-22” situation.
But even without a bank account and confirmation from a Norwegian Bank there is hope:
One possible solution may be to inquire with the real estate agent whether the seller would accept a confirmation from your home country’s bank, an employer’s statement, or if similar documents may suffice. It’s entirely up to the seller (and the real estate agent) to decide what they are willing to accept as adequate confirmation.
If there are no other bidders in the competition, and the market is somewhat slow, as it is right now, they are likely to approve alternative solutions. If there is a high demand for the property, they will prefer to sell to someone who can provide confirmation from a Norwegian bank.
If such a solution is accepted, the payment for the property will be transferred to the client account of the real estate agent. They will take care of ensuring compliance with anti-money laundering regulations, including confirmation from you regarding the source of the funds.
When the property is registered in your name, you will simultaneously apply for a D-number to establish ownership. With this, you will have the option to open a Norwegian bank account if you wish, for example, to manage the property’s expenses.
This can be somewhat complicated. I’ve had inquiries from people who found the process with the bank account and so on, so convoluted that they gave up on the whole project of buying in Norway.
But with a little assistance, it can be resolved. Please get in touch with me if you’ve found a property you’re interested in, and I can negotiate and clarify the situation with the real estate agent.