Copenhagen home owners could get biggest tax savings in reform
Owners of flats and detached houses in Copenhagen are likely to see the biggest tax savings under the new tax reform which comes into force next year.
A house that cost 7.4m kroner will pay 16,400 kroner less in housing tax in 2024. House owners in Albertslund will receive the second biggest tax cut, paying 13,200 kroner less for a house worth 3.2m kroner, the Børsen newspaper reported on Monday, referring to new figures from the Danish Property Assessment Agency (Vurderingsstyrelsen).
A typical house in Odense, Aarhus and other municipalities can expect tax cuts of between 4,000 and 5,000 kroner.
This is because property tax will from next year be based on updated property valuations, although people who already owned their homes before the change took effect will see lower rates applied to protect them from higher tax bills.
READ ALSO:
- How to look up estimated Danish property tax for 2024
- What do homeowners need to know about new Danish property tax rules?
- EXPLAINED: Denmark’s new property tax rules from 2024
One of the purposes of the new rules is to ensure tax better matches the value of properties. Although properties in Copenhagen have seen their valuations increase, their tax will rise less than might have been expected according to Børsen.
This is because the tax is calculation based on the valuation of both the building and the land, and land valuations in Copenhagen have previously been set too low.
But because municipalities may not increase the amount they can earn from the land element of property tax, Copenhagen Municipality is required to use a lower rate, Børsen reports.
“It’s probably a surprise for a lot of people that it’s like this. But it’s a consequence of tax being moved over to apartments, and particularly on the ground underneath they have been very undervalued,” Nykredit’s real estate economist Mire Lie Nielsen told Børsen.
In a written comment, Tax Minister Jeppe Bruus told the newspaper that homeowners in provincial and rural areas will get larger property tax cuts by percentage than people in the capital.
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A house that cost 7.4m kroner will pay 16,400 kroner less in housing tax in 2024. House owners in Albertslund will receive the second biggest tax cut, paying 13,200 kroner less for a house worth 3.2m kroner, the Børsen newspaper reported on Monday, referring to new figures from the Danish Property Assessment Agency (Vurderingsstyrelsen).
A typical house in Odense, Aarhus and other municipalities can expect tax cuts of between 4,000 and 5,000 kroner.
This is because property tax will from next year be based on updated property valuations, although people who already owned their homes before the change took effect will see lower rates applied to protect them from higher tax bills.
READ ALSO:
- How to look up estimated Danish property tax for 2024
- What do homeowners need to know about new Danish property tax rules?
- EXPLAINED: Denmark’s new property tax rules from 2024
One of the purposes of the new rules is to ensure tax better matches the value of properties. Although properties in Copenhagen have seen their valuations increase, their tax will rise less than might have been expected according to Børsen.
This is because the tax is calculation based on the valuation of both the building and the land, and land valuations in Copenhagen have previously been set too low.
But because municipalities may not increase the amount they can earn from the land element of property tax, Copenhagen Municipality is required to use a lower rate, Børsen reports.
“It’s probably a surprise for a lot of people that it’s like this. But it’s a consequence of tax being moved over to apartments, and particularly on the ground underneath they have been very undervalued,” Nykredit’s real estate economist Mire Lie Nielsen told Børsen.
In a written comment, Tax Minister Jeppe Bruus told the newspaper that homeowners in provincial and rural areas will get larger property tax cuts by percentage than people in the capital.
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