“Wow, but Oslo is so expensive!” Anyone who has discussed moving to Norway’s capital has heard this from well-meaning friends and family. But is it really that costly to live in Oslo? A 2024 global survey by Mercer found that, in fact, Oslo ranked 52nd for cost of living, behind cities like Atlanta, Mexico City, London, Berlin, Brussels, Amsterdam, Vienna, Philadelphia, and others.
So before you clutch your wallet in fear and abandon your Nordic dreams, let’s break it down piece by piece. The good news? While Oslo is expensive, it also offers a fantastic quality of life. And if you know where to look (and how to adapt), you might just find that living here is worth every kroner.
Outdated perceptions
Oslo has long been thought of as one of the most expensive cities in the world, though recent rankings tell a different story. In fact, not only is Oslo ranked 52nd for cost of living, it is ranked 20th for quality of living, outperforming many of the other expensive cities on Mercer’s list, so why does the myth persist?
- Historical Reputation – Oslo used to rank much higher in global rankings, and those perceptions tend to linger.
- High Prices on Specific Goods – While daily life can be affordable, things like alcohol, dining out, and cars come with hefty taxes and duties, making them seem exorbitant.
- Currency Exchange Perception – For visitors, the Norwegian kroner’s fluctuations can make Oslo appear more expensive than it actually is.
- Tourist Costs Are Not Everyday Costs – Visitors mostly experience the city’s pricier restaurants, hotels, and attractions, which don’t necessarily reflect local costs.
- High Wages and Strong Social Benefits – Salaries in Oslo are high, and the country provides strong public services, which makes higher costs more manageable for residents.
So, while Oslo is still undeniably pricey, it’s far from the most expensive place to live—and you’re likely to get a lot more for your money than you think.
First things first—housing
In Oslo, the primary factors influencing the cost of housing are proximity to the city center and the waterfront, and whether you plan to rent or buy. Generally, renting a three-bedroom apartment near the city center is 20% less expensive than a comparable rental in Atlanta, Georgia and 50% less than a similar rental in London. But if you intend to buy, things are a bit more expensive.
In either case, the best way to get a sense of the housing market is to browse online listings at finn.no and hybel.no. It’s also possible to find listings on Facebook Marketplace, as described in greater detail by Oslopolitan.
For those who plan to rent, a three-bedroom apartment in the city center will cost around 25,000 – 35,000 Norwegian kroner (NOK) per month ($2,300 – 3,200 USD with today’s conversion rate). If you’re looking to buy, similar three-bedroom apartments in Oslo will typically start at 9.5 million NOK ($883,000 USD), with luxury listings costing upwards of 35 million NOK ($3.3 million USD). So, it’s expensive but certainly not out of line with many European capitals.
Pro tip: Always start your housing search early, use platforms like Finn.no, and be ready with a deposit (usually three months’ rent upfront). Landlords also prefer tenants with a job and Norwegian references, so networking helps!
Taxes, taxes, taxes
Norway has a progressive income tax system, with a top marginal tax rate of around 47.4% (including national and municipal taxes), but the average income tax hovers around 22–35%, depending on your earnings. There’s also a 25% value added tax (VAT) on most goods and services, which may induce mild panic attacks at first.
But here’s the good part: taxes in Norway contribute to world-class public services, including universal healthcare, free education, excellent infrastructure, and, of course, the ability to take a sick day without worrying about bankruptcy. If you’ve ever dreamed of a stress-free welfare system, Norway’s got you covered.
Interestingly, though Norway is widely thought to have sky-high taxes, its tax rates are lower than those of Denmark, France, Austria, Belgium, and several others. When comparing total tax burden, consider not just income tax, but also VAT and social security contributions. Here’s a breakdown of how Norway compares to other high-tax European countries.
And it’s not just Europe—a 2024 Tax Foundation report also examined average tax rates in the U.S., and found that the state and federal average was a surprising 42.1%.
“For comparison, the average combined state and federal top income tax rate for the 50 U.S. states and the District of Columbia is 42.32 percent as of January 2024, with rates ranging from 37 percent in states without a state income tax to 50.3 percent in California.” – Tax Foundation
Of course, this is a simplistic take, and many people will also have concerns about Norway’s wealth tax, taxes on investments, and other more complex financial questions. For financial questions, there are many very qualified experts who can provide a better picture of your individual tax burden in Norway, and the Norwegian Tax Administration offers helpful information as well.
When it comes to Norway’s reputation for being prohibitively expensive—it seems more like a marketing problem than a tax problem. Yes, taxes are high, but Norway offers some serious perks in exchange.
Disclaimer: The content presented here is only for informational purposes, and should in no way be considered as legal, financial, tax, or investment advice. Definitely seek professional assistance and never blindly trust faceless writers on the internet when making financial decisions—we studied journalism, not accounting.
Public schools
Speaking of perks, if you have kids (or plan to), Norway’s education system is a dream come true. Public schools are free, including higher education. Yes, even universities! Most public schools provide instruction only in Norwegian, though there are private, international schools that teach in English, French and German, as well.
Additionally, Norway’s public schools stand out in several ways when compared to other western European countries:
- High Quality, Free Education – Unlike countries where private schools are often necessary for top-tier education, Norway’s public system is free and offers a high standard of learning.
- Emphasis on Wellbeing – Students typically have less stress, more outdoor activities, and a focus on personal development rather than constant testing.
- Smaller Class Sizes – Compared to public schools in the UK or Germany, Norwegian schools often have smaller class sizes, leading to more individual attention for students.
- Strong English Proficiency – Though Norwegian is the main language, students learn English early, and children who immigrate to Norway receive extra support until their Norwegian language skills are adequate.
- Inclusive and Egalitarian – Norway’s education system promotes equality, ensuring that all students, regardless of background, have access to the same opportunities. There’s no emphasis on elite schooling, unlike in some other European countries.
For younger children, Norway also offers subsidized, high-quality care at barnehage or preschool, which is available for children as young as one year old. While it isn’t free, the maximum monthly fee is capped at 3,000 NOK (~$280). Many newly arrived families find barnehage to be an excellent way for their children to integrate into Norwegian society and learn the language early. Spots can be competitive, so applying early is key!
Food for thought
Dining at restaurants in Norway might make you question all your life choices consider finding a more lucrative career. A mid-priced dinner for two near Aker Brygge will cost around 1125 NOK ($105 USD) if you each order an entree, a dessert and one cocktail. If you opt for a three-course meal with drink pairings, that will be closer to 1005 NOK ($93 USD) per person.
But fear not! There is a relatively simple—though not always glamorous—solution. The key to survival is preparing most meals at home. Grocery prices are manageable, and shopping at lower-cost grocery chains like Rema 1000, Kiwi and Coop can help with keeping your food costs in check.
Health is wealth
Here’s some more good news for those considering a move: healthcare in Norway is excellent and provided at very little cost to the patient. Residents are automatically covered by the national healthcare system, which requires only small fees of around 300 NOK ($28 USD) for doctor visits until you reach the annual deductible of approximately 3,200 NOK ($300 USD), after which everything is covered. Additionally, inpatient hospital care is provided free of charge.
For visitors from EU/EEA countries, Switzerland, or the UK, you may have rights to access healthcare, but Helse Norge recommends private travel insurance since your European Health Insurance Card will only get you limited coverage.
Workers from the EU/EEA, Switzerland or the UK—and many foreign workers from outside the EU—who live and work in Norway will be enrolled as members of the Norwegian National Insurance Scheme. If you’re not a resident yet, private healthcare can be pricey, so make sure you have insurance during the transition. Additionally, many international workers and expats choose to supplement public healthcare with private insurance, which can provide faster access to specialists and private hospitals. While not necessary for most, private health coverage can be a good option if your employer offers it or if you prefer extra peace of mind.
“What about dental care?” you may be asking. Dental care is free for children under the age of 18, and subsidized for young adults ages 19-20. Adults are typically responsible for the cost of their own dental care, though certain types of treatment may be covered by the national insurance scheme.
Key takeaways
Yes, Oslo is expensive, just like many other European capitals. But you get what you pay for: safety, a high standard of living, breathtaking nature at your doorstep, and a society that genuinely cares about its people. If you can budget wisely, take advantage of the benefits, and embrace the Norwegian way of life, you may just find that the cost of living here is worth every kroner.
