Known as BSU, Norway's young people’s housing savings program is a tax-efficient savings scheme for people under 34 years of age planning to buy their first property. Here's how it works.
There’s something undeniably satisfying about walking through the door of your own home for the first time. Whether it’s a cozy city apartment or a small house tucked away in a quiet neighbourhood, the feeling of having your own space is hard to beat.
For many young people living in Norway, owning a property is an achievable dream—yet in today’s economy, the steps to get there can feel steep.
Between rising house prices and the high equity requirements for securing a mortgage, saving enough to buy your first home can feel like an impossible task. But what if there was a way to make that dream a little more reachable?
Enter BSU—Norway’s housing savings scheme designed specifically for young people under 34. It’s one of the country’s most beneficial savings tools for future homeowners, offering a good interest rate and also helpful tax deductions.
If you’re an international living in Norway, this could be your stepping stone to owning property here. It helped me when I first moved here, even though I was only eligible to save in a BSU scheme for a couple of years.
How Does BSU Work?
The ‘Boligsparing for Ungdom' (‘Property Savings for Youth', known as BSU) account is a specialised savings scheme available to anyone under the age of 34 who is planning to buy property in Norway.
The program offers two major benefits: tax deductions and high interest rates. Here’s a breakdown of how you can make the most of it:
Annual savings limit: You can deposit up to NOK 27,500 per year into your BSU account. This might not sound like a huge amount, but the program is designed to encourage steady, long-term savings.
Tax deduction: Perhaps the biggest draw of BSU is the tax deduction. You can deduct 10% of your annual savings from your income taxes. For example, if you save the maximum NOK 27,500 in a year, you’ll receive NOK 2,750 in tax deductions.
This extra incentive can really add up over time, especially for someone in their 20s with a relatively lower salary.
Interest rates: BSU accounts offer some of the best interest rates available in Norway’s savings market. Typically, interest rates hover around 5-6%, meaning your savings grow faster than they would in a regular account.
Just be aware that the interest cannot be included in your annual savings limit, but it will continue to accumulate until you use the money for buying your home.
Who Is Eligible for BSU?
The BSU scheme is open to anyone under the age of 34, but there are a few important conditions to keep in mind:
First-time buyers: BSU is most beneficial for people who don’t yet own property. If you already own a home, you can still save in a BSU account, but you won’t be able to claim the tax deduction. However, you’ll still benefit from the high interest rate.
Income requirements: While there’s no minimum age to open a BSU account, you must have a taxable income to claim the tax deduction. If you’re under 17 or not earning enough to pay tax, you won’t benefit from the tax relief just yet.
What Can You Use BSU Savings For?
The money in your BSU account is reserved for property-related expenses, so it’s important to know exactly what you can and can’t use it for. Here are some of the approved uses:
Buying your first home: Whether you’re purchasing a small apartment in a borettslag or your dream house, your BSU savings can go towards the down payment.
Paying off your mortgage: You can also use BSU funds to pay down your existing mortgage, including both interest and principal.
Home improvements: BSU savings can be used for maintenance, renovations, or even outdoor upgrades like building a veranda or installing an EV charging station.
What You Can’t Use BSU Savings For
While BSU is a great savings tool for property-related expenses, there are clear restrictions on what you can't spend the savings on.
The account is specifically designed to help you buy or maintain your primary residence, so funds can’t be used for anything beyond that. Here are some of the restrictions:
Holiday homes: The BSU savings cannot be used for buying a second home, such as a cabin, holiday house, or rental property. The account is strictly for your main residence.
Furniture and appliances: If you’re excited about furnishing your new home, you’ll need to use other funds for that. BSU savings can’t be spent on furniture, freestanding household appliances, or tools.
Non-permanent homes: If you dream of owning a houseboat, a camper, or a mobile home, BSU won’t help with those purchases. The money must go toward a traditional brick-and-mortar home.
Extra land: You can use BSU savings to buy a plot of land for building a home, but it must be for your primary residence. You cannot use the funds to purchase additional plots of land.
Renovations on other properties: While you can use BSU funds for renovations or upgrades to your main home, you can’t use the money to renovate or improve a secondary residence or holiday property.
By understanding these restrictions, you can make more informed decisions about how and when to use your BSU savings. This helps ensure that you make the most of this beneficial scheme, without facing unexpected penalties.
But there are a few restrictions. You can’t use the funds for furnishing your home or purchasing a holiday property. The money is strictly reserved for your primary residence.
Why BSU Is Worth Considering for Internationals
If you’re a young international living in Norway, saving for a home might seem daunting, especially with rising property prices. But BSU offers a significant financial boost.
If you plan on staying in Norway long-term, this savings scheme can help you build up a deposit faster, thanks to the high interest rates and tax deductions.
Just remember that you’ll need to meet the income requirements to get the full benefit from the tax deductions.
A Word of Warning
But what if your plans change? Let’s say you need to leave Norway unexpectedly or decide not to buy property here. In such cases, you can still access the money in your BSU account, but there’s a catch.
If you withdraw the funds without using them for property-related purposes, you will lose all the tax benefits you've accumulated, and you may be subject to additional taxes on the savings.
Essentially, the BSU account is designed to reward those who follow through on purchasing a home in Norway. So, if you’re unsure whether you’ll stay long-term, it’s something to consider carefully before locking your savings into a BSU account.
How to Open a BSU?
There isn't one place to go to open a BSU. They are a financial instrument (like a pension) that can be offered by banks and other financial institutions. Opening a BSU account is simple, and most major banks in Norway offer this savings scheme.
If you already have a bank account in Norway, check if your bank offers BSU accounts. Don't have one? Here's how to open a bank account in Norway.
You can typically open a BSU account online through your bank’s website or mobile banking app. Once the account is open, you can start saving. Keep in mind that you can only open one BSU account during your lifetime, so choose wisely.
