The Action Zone in Vadsø
Vadsø is in the Action Zone (innsatssonen), previously known as tiltakssonen. The state gives businesses and residents in Finnmark and Nord-Troms financial benefits to make the region a good place to live, work and run a business. You do not need to apply — the benefits apply automatically.
- 0%employer’s National Insurance contributionscompared with 14.1% in much of the country
- 18.5%tax on ordinary incomecompared with 22% elsewhere in Norway
- NOK 45,000extra deduction from your incomeThe Finnmark deduction, 2026
- NOK 60,000of student loan written off each yearfor those who live and work here
For your business
- No employer’s National Insurance contributions. Businesses in the zone pay 0% employer’s National Insurance contributions on wages. In central areas the rate is 14.1%. Some industries are exempt, including transport, finance and consultancy services within groups.
- Reduced electricity tax. Businesses pay a reduced tax on electricity, and there is no VAT on electricity in the zone.
- Easier recruitment. Lower tax and student loan write-offs make it more attractive to take a job here.
For you and your employees
- Lower tax. Tax on ordinary income is 18.5%, compared with 22% elsewhere, and you get an extra deduction of up to NOK 45,000 (the Finnmark deduction).
- Student loan write-off. Up to NOK 60,000 a year once you have lived and worked here for 12 months. Primary and lower secondary school teachers can have a further NOK 20,000 written off.
- Free kindergarten. Kindergarten places are free in Finnmark.
- No electricity tax at home. Household electricity is exempt from electricity tax.
How much will you save?
The Norwegian Government has a calculator that works out how much you save by living and working in the Action Zone.
Open the calculatorFrequently asked questions
Do I need to apply to get the benefits?
No. The tax benefits and the exemption from employer’s National Insurance contributions apply automatically when you live in the zone or your business operates there. To have your student loan written off, you apply to Lånekassen (the Norwegian State Educational Loan Fund) after 12 months.
Does the 0% employer’s National Insurance rate apply to all industries?
No. Some industries are exempt and must pay the full rate, including transport (with an allowance), finance and insurance, and consultancy services within groups. Check with your accountant or the Norwegian Tax Administration.
Which municipalities are included?
All the municipalities in Finnmark, and seven municipalities in Nord-Troms: Karlsøy, Lyngen, Storfjord, Kåfjord, Skjervøy, Nordreisa and Kvænangen.
Sources
- Employer’s National Insurance contributions – rates (Norwegian Tax Administration)
- The Finnmark deduction (Norwegian Tax Administration)
- Tax on ordinary income (Norwegian Tax Administration)
- Student loan write-off in Finnmark and Nord-Troms (Lånekassen)
- The Action Zone (Finnmark County Council)
The figures apply to 2026 and were checked on 25 September 2026. The rates are set in the national budget every year.