Property tax

How is property value tax calculated after 2024?

Ejendomsværdiskat (property value tax) is calculated on 80% of the public property valuation. The 20% is a precautionary reduction that reflects the uncertainty in valuations. The rate is 0.51% up to the progression threshold and 1.4% on the part above it.

The progression threshold is adjusted every other year in line with property valuations. Property tax is paid monthly through the forskudsopgørelse (preliminary income assessment) and settled on the årsopgørelse (annual tax assessment), so an incorrect basis affects both your monthly tax and any tax owed at year end.

What is the property tax relief, and who gets it?

If you took over your home no later than 31 December 2023 and were liable to property value tax on it in 2024, you are generally entitled to relief. It ensures you do not pay more in total property taxes than under the previous rules, including the old tax freeze. The relief also applies to homes abroad.

The relief is not a fixed amount in kroner but a difference calculated under the rules. If you let the home, or it cannot be used as your residence, the relief is reduced proportionally for that period.

Which reductions may you be entitled to?

Reductions are not always applied automatically. For homes abroad and rental periods in particular, you must provide the information yourself in your preliminary and annual assessments.

• If you acquired the property no later than 1 July 1998, you are entitled to two transitional reductions. They lapse on a change of ownership, except between spouses.
• Recipients of the Danish state pension have a reduction of up to DKK 6,000 for year-round homes and DKK 2,000 for holiday homes, which is phased out with income.
• Owners of homes abroad can get a reduction for documented property tax paid abroad, up to the amount of Danish property value tax. Registration and transfer duties do not qualify.
• No property value tax is normally payable for periods when a home or holiday home is let and not available to you.

Where do property tax errors usually occur?

For Danish properties, it is rarely the calculation that is wrong, but the basis. Errors in BBR (the Danish building register) regarding floor area, use or heating can affect the valuation and your right to reduced electricity tax. Preliminary valuations are adjusted once the final valuation is issued, and overpaid land tax is refunded with interest compensation.

For homes abroad, there is no Danish valuation. The value is based on the purchase price adjusted by an approved price index or other documentation, and it is up to you as the owner to report it. An incorrect starting point carries over year after year.

If the basis was wrong in earlier years, the assessment can generally be reopened until 1 May in the fourth year after the income year. This applies to both property value tax and land tax.