Danish homeowners face wait until 2024 for key tax valuation
A schedule for updated valuations of homes in Denmark, which are used by tax authorities to calculate property tax, could be delayed until 2024 for some homes, potentially resulting in higher bills.
Some 700,000 houses in Denmark may not see their valuations updated until next year, broadcaster DR reports based on internal documents from the project leadership. Summer houses and apartments are more likely to be affected than other types of property.
Tax authorities have already confirmed that up to 375,000 homes will not be revalued until next year.
The valuations are important because new property tax rules, which take effect on January 1st 2024, mean rates are calculated in part based on new valuations of properties in the national database.
The new 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 valuations of their property made from 2022 onwards, an update from older data.
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.
READ ALSO:
- What do homeowners need to know about new Danish property tax rules?
- EXPLAINED: Denmark’s new property tax rules from 2024
But the new valuations have faced a number of delays and problems including IT issues and inaccurate valuations.
These delays now mean not all homes will have updated valuations on the national register by the time the new tax rules come into force, according to DR’s report.
The delays can cause uncertainty for homeowners because they can result in either too much or too little tax being paid based on incorrect or outdated valuations. That means either an additional cost upfront which will be paid back later, or an unwanted bill later down the line because property tax was undervalued.
Tax minister Jeppe Bruus declined to take part in an interview with DR over the issue. In January this year, Bruus conceded there would be “a small proportion” of valuations that would not be ready in time for 2024.
Further delays have increased the size of that proportion, DR now reports.
In a written comment to the broadcaster, Bruus stated that he would keep the appropriate parliamentary committee updated as to the situation.
“I will continue to do this when, as the nature of the matter requires, there is an informed basis to do so,” he said.
“I therefore can’t comment on some documents in a huge project, of which I donøt have any knowledge,” he said.
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Some 700,000 houses in Denmark may not see their valuations updated until next year, broadcaster DR reports based on internal documents from the project leadership. Summer houses and apartments are more likely to be affected than other types of property.
Tax authorities have already confirmed that up to 375,000 homes will not be revalued until next year.
The valuations are important because new property tax rules, which take effect on January 1st 2024, mean rates are calculated in part based on new valuations of properties in the national database.
The new 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 valuations of their property made from 2022 onwards, an update from older data.
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.
READ ALSO:
- What do homeowners need to know about new Danish property tax rules?
- EXPLAINED: Denmark’s new property tax rules from 2024
But the new valuations have faced a number of delays and problems including IT issues and inaccurate valuations.
These delays now mean not all homes will have updated valuations on the national register by the time the new tax rules come into force, according to DR’s report.
The delays can cause uncertainty for homeowners because they can result in either too much or too little tax being paid based on incorrect or outdated valuations. That means either an additional cost upfront which will be paid back later, or an unwanted bill later down the line because property tax was undervalued.
Tax minister Jeppe Bruus declined to take part in an interview with DR over the issue. In January this year, Bruus conceded there would be “a small proportion” of valuations that would not be ready in time for 2024.
Further delays have increased the size of that proportion, DR now reports.
In a written comment to the broadcaster, Bruus stated that he would keep the appropriate parliamentary committee updated as to the situation.
“I will continue to do this when, as the nature of the matter requires, there is an informed basis to do so,” he said.
“I therefore can’t comment on some documents in a huge project, of which I donøt have any knowledge,” he said.
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