The Oslo region is one of Scandinavia’s biggest growth areas. It is made up of two counties: Oslo and Akershus. Oslo, also a municipality, is the geographical and functional centre of the region.

The region has one million inhabitants, 90,000 companies and one of the highest purchasing power standards (PPS) in the world. As Norway’s capital, it is also the centre of one of the most robust economies in the world and tops international ratings for quality of life.

The Oslo region also has the most highly educated workforce in Europe and is ranked second among the world’s leading information societies. More than 40% of those with higher education in Norway live in the Oslo region and close to 50% of Norway’s R&D is carried out in this knowledge centre.

Norway and the other Nordic countries also have a higher proportion of mobile phones and internet users than the European Union average. The telecommunications infrastructure in Norway is fully digitised, and the Oslo region in particular is leading the way towards a wireless society. Prices for telecommunication services are among the lowest in Europe and the region serves as an excellent test market for new ideas and products.

The Oslo region is a two-hour flight from most European cities and has the second most punctual airport in Europe.

It is less than 20 minutes by high-speed train from the airport to Oslo city centre. A well-developed public transport system gives easy access to the whole region and the greater Oslo area, for work or for leisure in the nearby mountains and the Oslo fjord.

Norway has a prosperous and stable society with a strong democratic tradition and a political and economic climate that is conducive to industry and business development. The Oslo region has one of the highest regional GDPs in Europe. From 1996 to 2001, the number of employees in the region grew by 85,000 people.

Access to the highly educated workforce is one of the key advantages for innovative businesses operating in the Oslo region. Norway also has the highest level of labour productivity in Europe and a well-developed public health and social welfare sector.

The dynamic business community consists of 90,000 companies, and the region lays claim to unique expertise within biotechnology, medicine and health, information and communication technology, and the energy and maritime sectors. As the capital of Norway, Oslo is also home to a strong financial community and is a preferred location for head offices and international companies.

The tax rate for limited liability companies in Norway is 28% on taxable profits (ordinary income). This rate is the second lowest in Europe and the tax base is the sum of operating profit/loss, financial revenues and net capital gains minus tax depreciation.

The general taxation level in Norway is lower than the average for the Nordic countries, but considerably higher than the average for industrialised countries (OECD 2001). This is mainly because services in the health and education sectors in the Nordic countries are largely a public responsibility while in many other countries they are more frequently produced by the public sector and financed through user payments.

The Norwegian tax system is under revision in order to reduce the tax burden, enhancing neutrality and efficiency. For the time being, though, the general tax rate to be used for investment analysis in Norway remains 28%.

Norway has chosen not to become a member of the European Union (EU), but Norwegian and foreign-owned companies located here have full access to the EU market through the European Economic Area (EEA) agreement. The Norwegian economy is considered to be open and international: foreign direct investments (FDIs) grew by 122% from 1996 to 2002.