For Norwegian nationals investing in a US business on an E-2 visa

E-2 Investors From Norway: Tax on the Business, the Investment and You

E-2 investors from Norway often assume a nonimmigrant visa means nonresident for tax. It usually does not. Here is how the company, the investment and your own residence are taxed.

E-2 treatyForm 1120Form 5472BE-13Tax residence

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Quick answer

Is an E-2 investor from Norway a US tax resident?

Usually yes, once living in the US for most of the year. E-2 is not an exempt-individual category under IRS Pub 519, so your days count under the substantial presence test, and a resident is taxed on worldwide income. If Norway also treats you as resident, Article 3 (Fiscal Residence) of the treaty breaks the tie. Your company files its own returns: Form 1120, and Form 5472 while it is foreign-owned.

Prepared by Illuminous Accounting · Sources checked November 11, 2026

At a glance

E-2 treaty with Norway: In force since January 18, 1928 (State Department)
Company: US corporation (Form 1120) or LLC; Form 5472 while foreign-owned
Your tax residence: Substantial presence test; E-2 days are not excluded
Treaty tie-breaker: Article 3 (Fiscal Residence)
Social security agreement: Yes, since July 1, 1984

What USCIS looks for

E-2 condition (USCIS)	In short
Nationality	You must be a national of a treaty country; Norway's E-2 treaty has been in force since January 18, 1928 (State Department)
Substantial investment	Capital at risk in a bona fide enterprise; no fixed minimum, judged against the cost of the business
Not marginal	The business must be able to earn more than a minimal living for the investor and family
Develop and direct	At least 50% ownership or operational control
Stay	Up to two years at a time, with extensions in increments of up to two years

Sources: State Department treaty countries, USCIS E-2 page.

Immigration questions belong with your immigration lawyer. We handle the tax side: the company, the money you put in, and your own US returns.

Structuring the E-2 business from Norway

The structure you choose in the US decides the filings, not the visa. A corporation files Form 1120 every year (IRS). An LLC follows Treas. Reg. section 301.7701-3: disregarded with one owner, a partnership with more, or a corporation if it elects (IRS). Foreign ownership adds Form 5472 and its US$25,000 penalty (IRS), and a new business set up by someone from Norway generally needs a BE-13 within 45 days (BEA rule).

Capital or loan

The money you bring from Norway can go in as capital (shares or membership interest) or as a loan to the company. For tax reporting, the difference matters: while the company is foreign-owned, loans from you, the balance outstanding and any interest are related-party transactions on Form 5472 (IRS). Keep a loan agreement and bank records for every transfer.

Once you are resident: the yearly list

Form 1040 on worldwide income every year you are resident, including income from Norway.
FBAR and Form 8938 for accounts you keep in Norway; see FBAR and FATCA and Form 8938.
Form 5471 if you keep control of a company in Norway: a US person controlling more than 50% of a foreign corporation is a Category 4 filer, with a US$10,000 penalty per year for not filing (IRS). See Form 5471.
Funds held in Norway can be PFICs; see PFIC and Form 8621 for how the rules work.
Once you are a US resident you are no longer a foreign person for Form 5472, which the IRS defines as an individual who is not a citizen or resident (IRS). Whether the company still files depends on who else owns it.

Residence clarity for E-2 investors

Question	Answer for an E-2 investor from Norway
Are E-2 days excluded?	No. E-2 is not an exempt-individual category in IRS Pub 519
When do I become a US tax resident?	When you meet the substantial presence test (31 days this year, 183 weighted days over 3 years), usually in your first full year
The first year	Usually dual-status: nonresident before the residency starting date, resident after
Resident in both countries?	Article 3 (Fiscal Residence) of the treaty decides; Form 8833 discloses the position
Social security	Agreement in force since July 1, 1984

Sources: IRS Pub 519, Form 8833, SSA.

Taking money out before you are resident

While you still live in Norway, dividends and interest from your US company are not reported on a US return the usual way: the company withholds, at 30% unless the treaty gives a lower rate (IRS Pub 515).

Payment to a resident of Norway	General treaty rate (IRS Table 1)	Treaty citation
Dividends from a US corporation	15%	Article 8(2)
Interest on a loan you made to the company	0%	Article 9

Rates from IRS Tax Treaty Table 1 (Rev. May 2023). The IRS notes the table is not a complete guide to eligibility; the treaty's conditions, including any limitation on benefits, must be met. Once you are a US resident these rates no longer apply to you.

Treaty and law references

Treaty

The IRS lists the 1971 income tax treaty, amended by a 1980 protocol. General effective date (IRS Table 3): treaty Jan. 1, 1971; protocol Jan. 1, 1982 (IRS treaty documents for Norway; treaty text; IRS Table 3).
Residence and tie-breaker: Article 3 (Fiscal Residence).
Article 5 (Business Profits), business profits.
Article 8 (Dividends), dividends.
Article 23 (Relief from Double Taxation), relief from double taxation.

US law and E-2 rules

E-2 status: State Department treaty countries (E-2 with Norway in force since January 18, 1928); USCIS E-2 Treaty Investors, 8 CFR 214.2(e).
Tax residence: Code section 7701(b) (Pub 519). Treaty residence: Treas. Reg. section 301.7701(b)-7 and Form 8833 (IRS).
Company filings: Code section 6038A and Treas. Reg. section 1.6038A-1 for Form 5472 (IRS); Treas. Reg. section 301.7701-3 entity classification (IRS); 15 CFR 801.7 BE-13 (eCFR).
Foreign companies you control: Form 5471 (IRS).

The tax rules of Norway on leaving or keeping assets there also apply; a local adviser covers that side.

How we help

Gurleen Kaur, CPA licensed in British Columbia and Washington State, prepares the E-2 company's returns (Form 1120 or the LLC filings, Form 5472, BE-13) and your own first-year and ongoing US returns. Immigration filings stay with your lawyer. Written quote first.

E-2 investors from other countries

All countries: E-2 investor tax by country. From Canada: E-2 taxation for Canadian founders. Moving without an E-2: moving to the US, by country.

Common questions

How much must an E-2 investor from Norway invest?

USCIS does not set a fixed minimum. The investment must be substantial in relation to the total cost of the business, and the lower the cost, the higher the proportion expected. The enterprise may not be marginal. Your immigration lawyer advises on this.

Does an E-2 investor from Norway pay US tax on worldwide income?

Usually yes, once resident. E-2 is not an exempt-individual category, so the substantial presence test applies, and a US resident is taxed on worldwide income from the residency starting date.

What if Norway also treats me as resident?

Article 3 (Fiscal Residence) of the treaty decides residence for treaty purposes; claiming it on a US return needs Form 8833.

Does the E-2 company file Form 5472?

A US corporation that is 25% or more foreign-owned files Form 5472 with Form 1120, and a single-member LLC files it while its owner is a foreign person. Once you are a US resident you are no longer a foreign person for this purpose.

Sources

Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.

Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.

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