The country of Norway gets widely recognized as the Land of the Midnight Sun. It is well-known for its spectacular fjords, lakes, and magical skies. Norway is also known for its languages, Vikings, folklore, environmental friendliness, and oil production. Furthermore, many Norwegians are well-known skiers, frozen pizza lovers, & Tesla drivers! Why Is Norway So Expensive?
Norway is undeniably among the most expensive nations in the world. The most important is that labor prices are ridiculous. Because most products & services require the use of human workers, the cost of these products & services rises.
Why Is Norway So Expensive? (For Foreigners)
The labor cost is the main factor that contributes to Norway’s high cost of living. This is especially true for low-wage jobs like cleaners, hotel receptionists, food store clerks, and so on.
The owner in Norway will most likely have to pay a little more for machinery, raw materials, & serving cups. Lemons and sugar, for example, must be imported into Norway. However, the most significant distinction seems when each owner is required to pay a minimum-wage worker to perform in the stand. In Spain, this is somewhere around 1050 EUR for every month, whereas in Norway, it would be 2450 EUR.
How Is Norway Affordable?
Even though Norway is an expensive country for foreign people, most Norwegians can live comfortably. This is mainly because the majority of Norwegians earn a good living, which helps to offset the high prices. This is best demonstrated by comparing how often Norwegians pay for basic goods & service providers about their earnings to those of other countries.
Salary on Average
According to the Norwegian Bureau of Statistics, the average monthly income in Norway after taxes in 2020 will be around $4200. Let’s see how it compares to an estimate in other countries:
- 2740 USD for the UK
- 2215 USD for Italy
- 3800 USD in the US
According to these figures, the average Norwegian earns about 11% more than the average US citizen, 35% as much as the average UK civilian, and 47% more than the average Italian citizen. Let us see if the average Norwegian income compares to the others when it comes to typical daily expenses. Let’s use three common expenses as an example: rent, gas, & electricity.
Rent
Begin with the rent. Consider the rent for a 50-square-meter apartment. There are significant regional variations, but the average price in Norway is around 1135 USD. This was surprisingly high in the United States, at around $1200. It was approximately 850 USD in the United Kingdom and approximately 670 USD in Italy.
Gas
Consider gas for a vehicle with a 50-liter tank that needs to get filled twice a month. The price of a liter of gasoline in USD is 2 throughout Norway, 1.7 within the UK, 0.75 in the US, and 1.8 in Italy.
Norway:
100 liters at $2 per litre = $200 USD
100 liters at 1.7 USD/L = 170 USD in the United Kingdom.
100 liters at 0.75 USD/L = 75 USD in the United States.
100 liters at 1.8 USD/L = 180 USD in Italy
Expensive Things In Norway
Despite being inexpensive on a Norwegian income, some items are simply prohibitively expensive in Norway.
Alcohol
Alcohol & tobacco are extremely expensive. According to a Wall Street Journal survey, the average cost of a beer in an Oslo supermarket is $3.45. This is much more than double the average for most cities in the United States and Europe. One significant reason is that the Norwegian government heavily taxes alcohol to reduce alcoholism.
Driver’s License
Obtaining a driver’s license in Norway is notoriously expensive. The total cost, which includes course fees & driver’s education courses, is around $3500.
Eating Out
In Norway, trying to eat out is a costly endeavor. According to a survey, the price of food out in Norway is 61 percent higher than in the United States, and 50-60 percent higher in several other European countries. Whether you have higher wages or otherwise, snacking out is not cheap, even on a Norwegian salary.
Cheaper Things In Norway
Contrary to popular belief, there are a few items in Norway that are extremely affordable.
Electricity
Norwegians consume significantly more energy than their American & European counterparts due to the cold climate. Heating and hot water get provided by electricity. Fortunately, electricity is inexpensive in Norway. The price for every kWh of 0.099 USD is 44% less than in the United States and up to 60% less than in most European countries.
Education
High-quality education is available in Norway at a fraction of the cost of most other countries. In Norway, both primary and secondary education is free for children. Furthermore, students at universities only pay fees of around $200 for their university education.
Salmon
Norway is well-known for its high-quality salmon. Norway has a flourishing farmed fish industry, which reduces the cost of salmon in comparison to most other countries.
Conclusion
Norway is definitely an expensive country, don’t be put off by the high prices on the surface. If you do your research & plan your stay carefully, you might be surprised at how inexpensive it can be. Prices for goods and services are determined by the costs of producing/providing them. Hope this will give you some information about how expensive is Norway.
Frequently Asked Questions
Q) Is healthcare coverage in Norway free?
A) Health system in Norway is intended to be accessible to all, but it is far from free. The government heavily subsidizes the country’s universal healthcare system through taxation.
Q) Can a foreigner purchase a home in Norway?
A) Foreigners are not barred from purchasing property in Norway. Although there is no property tax in Oslo, each sale is subordinate to a one-time % transfer tax known as a document fee.
