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The Action Zone questions and answers

6 questions

The Action Zone

Why is the employer’s National Insurance contribution 0% in Vadsø?

Vadsø is in the Action Zone (innsatssonen, formerly tiltakssonen), where the state gives benefits to make Finnmark and Nord-Troms a good place to live and do business. Businesses in the zone pay 0% employer’s National Insurance contributions, against 14.1% in much of the country (2026). You do not need to apply. See the Action Zone.

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The Action Zone

Which industries are excluded from the 0% rate?

Some industries 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. See the Action Zone.

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The Action Zone

What is the Finnmark deduction, and how much lower is the tax?

The Finnmark deduction is an extra income deduction for people living in the zone — NOK 45,000 in 2026. On top of that, the tax on ordinary income is 18.5% against 22% elsewhere in Norway. The rates are set in the national budget every year. See the Action Zone.

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The Action Zone

Do I have to apply to get the Action Zone benefits?

No. The tax benefits and the exemption from employer’s National Insurance contributions apply automatically. Only the student-loan write-off has to be applied for, to Lånekassen after 12 months. See the Action Zone.

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The Action Zone

Which municipalities are in the Action Zone?

All the municipalities in Finnmark, and seven in Nord-Troms: Karlsøy, Lyngen, Storfjord, Kåfjord, Skjervøy, Nordreisa and Kvænangen. See the Action Zone.

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The Action Zone

Is electricity cheaper in the Action Zone?

Household electricity is exempt from electricity tax. Businesses pay reduced electricity tax, and there is no VAT on electricity in the zone. See the Action Zone.

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Last updated 8 October 2026.