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TAXES

How to look up estimated Danish property tax for 2024

Denmark is to change property tax rules from January 1st next year, but existing homeowners should be protected from a higher tax bill.

Published: 12 September 2023 14:42 CEST
How to look up estimated Danish property tax for 2024
Preliminary Danish property tax estimates for 2024 can now be viewed online. File photo: Mathias Løvgreen Bojesen/Ritzau Scanpix

Denmark is set to implement new laws from January 1st, 2024 that will impact the way property tax is calculated.

Around four in five homeowners will pay a lower rate of property tax under the new rules, while the remaining homeowners will be given subsidies intended to insure their property tax burden does not go up as a result of the change.

Although future homeowners could face a higher property tax bill once the new rules have taken effect, compared to if they had purchased their home before 2024, the changes in the way tax is calculated are designed not to increase the tax burden for existing homeowners.

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From 2024 onwards, the two property taxes – property value tax rates (ejendomsværdiskattesatser) and land value tax (grundskyld) – are based on new valuations of properties which have been conducted since 2020 – and are still ongoing in some cases.

The new property tax rules are designed to keep property tax stable as new property valuations, on which taxes are calculated, come into effect.

In short, homeowners will from 2024 onwards pay property tax based on new valuations of their property.

For most people, the new valuations will be higher than the older ones, because house prices have generally risen in the intervening years. Houses and apartments in and around major cities have seen their values increase the most.

In response to the rising valuations, parliament adopted a new property tax law (ejendomsskattelov). The new law means that property value tax rates (ejendomsværdiskattesatser) and land value tax (grundskyld) will both be reduced from next year.

Existing homeowners will be given a tax deduction if the valuation of their property has increased so much that they owe more than before the reform, even after the lower rate is applied. The purpose of the subsidy is to ensure homeowners don’t pay more in property tax in 2024 than they did on the same home under the old rules. The deduction is applied to their property tax annually for as long as they own the home.

Where can I see the new valuations?

The new assessments will not be sent directly to homeowners but can be accessed from September 12th at the portal Vurderingsportalen.dk, which is part of the Danish Property Assessment Agency (Vurderingsstyrelsen).

Enter your address in the field “søg på adresse”. The preliminary valuation will then be displayed.

Most homeowners will find that the displayed preliminary valuations are higher than the most recent tax valuations used for their property. But the lower tax rates will mean lower property tax for four out of five homeowners, even if their new valuations are higher than previous ones.

How can I calculate property tax based on the preliminary valuations?

A calculator on the Vurderingsportalen website displays an estimate – an “idea”, to use the words of the valuations agency itself – of what your property tax will be in 2024 based on the existing preliminary valuations.

Similar to when looking up the valuations, the calculator is easy to use. Simply enter your address into the “søg på adresse” field and the page will display the two property tax types –  property value tax rates (ejendomsværdiskattesatser) and land value tax (grundskyld) – and the combined annual property tax.

These figures are the maximum estimated property tax for 2024 and do not take into account any tax subsidy which you might be eligible for.

What else do I need to know?

As mentioned above, you qualify for a tax subsidy if your property tax increases as a result of the new rules for property tax in 2024.

This can happen if the valuation of the property has increased so much that the tax is higher than before the reform, even after the lower rate is applied. Houses and apartments in and around major cities, particularly Copenhagen, have seen their values increase the most.

The calculator does not take the subsidy into account, meaning it might show a higher tax than you currently pay in these cases. You can read about the subsidies in more detail (in Danish) on the valuation agency’s website.

The valuations released on Tuesday are preliminary. Final property tax rates for 2024 will depend on assessments of property and land valuations being completed by authorities.

That is expected to be done by November, to be included in Denmark’s preliminary tax returns or forskudopgørelser.

This means the land value tax (grundskyld) will also be included on preliminary and annual tax returns. This tax was collected by municipalities under the old rules, but now comes under the annual tax return and will therefore appear in a different place on your tax information.

Member comments

  1. You mentioned “Similar to when looking up the valuations, the calculator is easy to use.” what is the link for the calculator?

    1. Hi Ray,
      A link to the calculator has now been added to the text of the article, you can also find it here. Apologies for not including it in the original version.
      Best wishes, Mike

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For members

ECONOMY

Explained: Why Denmark’s economy is looking in such extremely good shape

Denmark's economy is growing faster than the government expected, inflation is falling faster, and employment is holding up better. We explain why the new economic forecast shows Denmark has achieved the softest of soft landings.

Published: 16 May 2024 15:41 CEST
Explained: Why Denmark's economy is looking in such extremely good shape

 “When I stood here a year ago and presented my first financial statement, it was with a message that the Danish economy was heading for a soft landing. We have since been strengthened in that assessment,” Stephanie Lose, Denmark’s economy minister, said at a press conference announcing the government’s Økonomisk Redegørelse, or financial statement, for May. 

In the press statement, she said, “optimism is returning to the Danish economy”, with the economy likely to improve further in the coming year.

“We have carried out reforms that make Denmark richer and help to secure the necessary workforce for Danish companies,” she said. 

How has the government changed its growth forecasts? 

The government has increased its expectation for Denmark’s growth rate since its last statement in December, with it now expecting 2.7 percent growth in 2024, up from the1.4 percent it expected for the year in December. 

It has also upgraded its expectations for 2025, predicting growth of 1.8 percent compared to the 1 percent it expected back in December. 

Lose said that the pharmaceutical company Novo Nordisk, which is expanding rapidly as a result of the success of its weight-loss drugs Ozempic and Wegovy, had driven much of Denmark’s recent growth, with the reopening of Denmark’s gas field, the Tyra field, would start to contribute to growth soon.

“In the past two years, the pharmaceutical industry in particular has driven growth in the Danish economy, while there has been stagnation or decline in large parts of the rest of the economy,” she said. “In the coming years, other industries again look set to contribute to growth. Added to this is the reopening of the Tyra field in the North Sea, which also contributes to growth in GDP.” 

What does the government expect to happen to inflation? 

Denmark’s inflation rate fell rapidly from a peak of over 10 percent in October 2022 to below 2 percent in September 2023, where it has stayed ever since. But Lose said she expected the rate to edge up over the coming years. 

“Inflation has fallen quickly and faster than expected,” Lose said. “In the new forecast, we expect inflation to rise in the coming months, as the prices of services and energy pull in the direction of slightly higher inflation.” 

What does the government expect to happen to employment? 

Thanks mainly to Novo Nordisk increasing staffing to manage the success of its new drugs, and the bounce back from the pandemic, employment has also held up better than expected.

Employment soared by some 160,000 people between 2021 and 2023, and the government now expects the number of employed people to grow by a further 13,000 in 2024 but to then fall by 18,000 in 2025. 

“Employment has long been at a sky-high level, so it is estimated that we will see some adjustment. But we do not expect an extensive setback, because the Danish economy stands on a rock-solid foundation,” Lose said.

What does the government expect to happen to housing prices? 

The government has significantly upgraded its expectations of what will happen to the price of domestic property this year. It now expects prices to increase by an average of 3.2 percent in 2024 and 3 percent in 2025, a rise of two percentage points on the 1.2 percent rise for 2024 it expected when it made its last forecast in December. 

This is due to the continued strong labour market, which has seen rising incomes and wage increases in Denmark as a result of new collective agreements, at the same time as Denmarks Nationalbank is expected to cut interest rates. 

This rise follows two consecutive years of falling real house prices in 2022 and 2023. 

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