Property tax

As property owner you pay two types of property tax: property value tax and land tax. Both taxes are paid via your preliminary income assessment and annual tax assessment notice.

Property value tax

You have to pay property value tax, if you own a home and live in it. If you own a rental property, however, you only have to pay land tax.

Property value tax is calculated as a percentage of the property value stated in the current public property assessment minus 20 %.

Property value tax rates:

0.51 % of the value up to DKK 9,200,000

1.4 % of the value exeeding DKK 9,200,000.

EX:

Property value: 2.000.000

Minus 20 % = 1,600,000

Property value tax: 1,600,000 x 0.51 = 8,160

Land tax

You have to pay land tax, if you own land in Denmark. Land tax is calculated as a percentage of the land value stated in the current public property assessment. It is a local tax, and the rate differs from municipality to municipality.

Se local tax rates (page in Danish)

Until 2024, you paid land tax to your local municipality twice a year. As of 2024, land tax is charged by the state via your preliminary income assessment and your tax assessment notice. The payments will be deducted from your income on a monthly basis, as is the case for property value tax.

Freeze tax increases through a loan

If your property taxes increase, you can freeze the increase by means of an interest-bearing loan. You do not have to pay back the loan, until you sell your property. However, you may choose to repay all or part of the loan, at an earlier point in time.

You can decide if you want such a loan or not in your preliminary income assessment. Go to item 651 and tick “ja”, if you wish to take out a loan. Tick “nej”, if you want to opt out of the scheme.

The loan is established the subsequent year. For instance, if the loan is to cover a tax increase in 2025, it will be established in January 2026.

When the loan has been established, you can view and repay it by logging in to Boligskattelaan.skat.dk (in Danish)

Loans until 2024

Until 2024, property tax loans were administered by the municipality. If you had a loan before 2024, it is still registered at the municipality. The loan is interest free and covers increases in property tax before 2024.

As of 2024, the state took over administration of new property tax loans. If you had a loan at the municipality, a new interest-bearing loan will be established automatically to cover increases in property tax from 2024 and onwards. If you do not want the loan, you can cancel it as explained above.

Provisional property tax

In recent years, property owners have paid a provisional property tax, because the public property assessments were not ready. Therefore, when you get a new public property assessment, your property taxes for previous years will be recalculated and subsequently adjusted. You will be notified, when it happens.

More information …

At skat.dk you can read more about property tax when owning, buying, selling and renting out property in Denmark as well as rules relating to non-Danish property.

Go to skat.dk and read more about property tax

Call us, if you have questions

If you have questions or need further guidance, feel free to call us at +45 72 22 16 16