KEY POINTS: What changes about life in Denmark in 2024?
From property tax rules and rail fares to work permit case processing and an abolished public holiday, here's what changes in Denmark in the year ahead.
As the calendar turns to 2024, Denmark is preparing for several changes that will impact various aspects of daily life for its residents.
From modifications in property tax rules to adjustments in cash payment limits, the 2024 budget, and more, these shifts promise to bring a mix of challenges and opportunities for residents and newcomers alike.
Changes to Danish property tax rules
From January 1st, 2024, Denmark will implement new property tax regulations that will have significant implications for homeowners in the country.
These changes are expected to result in lower property tax rates for four out of every five homeowners.
For those who may face higher tax rates, subsidies will be provided to ensure that the new rules do not lead to increased financial burdens.
READ MORE: What do homeowners need to know about new Danish property tax rules?
However, prospective homeowners may encounter a different property tax landscape compared to those who purchased their homes before 2024.
The objective of these new rules is to maintain property tax stability as they shift from older data to valuations based on property assessments made in 2022.
If you want to go into the specifics of these changes, The Local has a detailed guide on accessing the new assessments.
The expected outcome of the changes in property taxes is a reduction in property tax rates for around 80 percent of homeowners in Denmark, according to some estimates. Photo by Gemma Evans on Unsplash
A new limit for cash payments
In March 2024, Denmark may introduce new rules governing the use of cash. The current cash payment limit, set in 2021, stands at 20,000 kroner.
The Danish government plans to propose a bill to reduce this limit to 15,000 kroner.
Currently, cash is used in about 10 percent of in-store transactions in Denmark, with 90 percent of these payments amounting to 500 kroner or less.
The 2024 budget – and its implications
The 2024 state budget brings a mix of changes that will affect the daily lives of Denmark's residents, including international citizens living in the country.
READ MORE: How will Denmark's 2024 budget affect you?
A special fund will be established to make repairing household appliances such as washing machines and refrigerators more affordable, aiming to promote a circular economy and sustainability. This is likely to involve a pool to which business can apply for funding related to circular economy businesses like repair shops. Tax deductions, training in repairs and help accessing spare parts are also potential elements.
Furthermore, more homes will be connected to district heating, enhancing energy supply security. Electric car owners can expect the tax deduction for zero-emission cars to remain unchanged from 2023 to 2025, providing savings when paying car registration tax.
Additionally, there will be increased tax subsidies for commuters in rural areas and lower ferry ticket costs for smaller outlying islands through subsidies to operators.
Beginning in 2024, Denmark will witness a rise in rail ticket costs. Photo by Marek Lumi on Unsplash
Rail fares set to increase
Starting in 2024, rail ticket prices in Denmark will increase by up to 13 percent, with most regions experiencing higher fares.
The extent of these changes varies by region and ticket type, averaging around 10 percent.
These price adjustments apply to various aspects of rail travel, such as prepaid Rejsekort usage and Pendlerkort for commuters.
The “price regulation” which will take effect next year comes after a “backlog of costs from 2022 and 2023”, national rail operator DSB said when it announced the changes.
READ ALSO: Rail fares set to increase across Denmark in 2024
Slight change to work permit case processing
Work permit applications, including those under programs like the Pay Limit Scheme, the Fast Track Scheme, and the Positive List, are subject to new income statistics from the beginning of next year.
These statistics, provided by the Confederation of Danish Employers, will be updated quarterly, with the next update effective from January 1st, 2024.
This means that applications submitted from October 1st onwards will be assessed based on income statistics from the second quarter of 2023, while earlier applications will rely on statistics from the first quarter of 2023.
Remember to check your Danish preliminary tax return in January
Preliminary tax returns or forskudsopgørelser for the forthcoming year are released in November, meaning they can carry information over from the preceding tax year, using information from the most recent tax return. Tax years in Denmark follow calendar years.
If your circumstances have changed during 2023, it’s therefore a good idea to update your preliminary tax returns as early in the year as possible, because it ensures accurate tax payments from the beginning of the new year.
The Danish tax authority, Skat, advises updating your preliminary return — a projection of your expected income for the year along with the deductions you’re eligible for — if your circumstances have changed in one or more of the following ways:
- Changed jobs
- Been promoted or received a salary increase
- Taken on a mortgage
- Refinanced your mortgage
- Changed your commute
“It’s never too late to go in and check your preliminary tax return. You can do that every day, all year round. It’s just important to do it now in relation to the paycheck for January,” Danish Tax Authority junior director Jan Møller Mikkelsen told news wire Ritzau a year ago.
“We experience increasing numbers of calls from the public in January when people can’t understand why the first payment of the year is wrong,” Mikkelsen said.
“Now is the time to go in and check the preliminary tax return if you want to ensure the correct wages are paid in January,” he said.
READ ALSO: Why it pays to check your Danish preliminary tax return in January
The now-scrapped Great Prayer Day holiday
After heated parliamentary and public debate in 2023, the government pushed through with its decision to abolish the Great Prayer Day from 2024 onwards.
That means that this centuries-old holiday, observed in Denmark for over three hundred years, will no longer provide a public day off starting in 2024. The last Great Prayer Day holiday occurred on May 5th, 2023.
Great Prayer Day traditions like confirmations and baking hveder, cardemom-infused buns, are likely to still be practiced as part of this springtime tradition, but most people will now have to fit them around work.
Plastic Rejsekort to be gradually phased out and replaced by app
In an exciting development for commuters and travellers navigating Denmark's extensive public transportation system, the era of the plastic Rejsekort is drawing to a close.
Instead, a new mobile app is set to change how passengers pay for their journeys.
READ MORE: Denmark’s Rejsekort to be replaced by app
Starting in 2024, passengers utilizing Danish buses, trains, and metros will have the option to bid farewell to their physical Rejsekort and welcome a digital counterpart.
The 2024 rollout of the mobile app will initially provide passengers with the choice between the digital version and the traditional physical card, but the gradual phasing out of the physical Rejsekort is also on the horizon.
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As the calendar turns to 2024, Denmark is preparing for several changes that will impact various aspects of daily life for its residents.
From modifications in property tax rules to adjustments in cash payment limits, the 2024 budget, and more, these shifts promise to bring a mix of challenges and opportunities for residents and newcomers alike.
Changes to Danish property tax rules
From January 1st, 2024, Denmark will implement new property tax regulations that will have significant implications for homeowners in the country.
These changes are expected to result in lower property tax rates for four out of every five homeowners.
For those who may face higher tax rates, subsidies will be provided to ensure that the new rules do not lead to increased financial burdens.
READ MORE: What do homeowners need to know about new Danish property tax rules?
However, prospective homeowners may encounter a different property tax landscape compared to those who purchased their homes before 2024.
The objective of these new rules is to maintain property tax stability as they shift from older data to valuations based on property assessments made in 2022.
If you want to go into the specifics of these changes, The Local has a detailed guide on accessing the new assessments.
A new limit for cash payments
In March 2024, Denmark may introduce new rules governing the use of cash. The current cash payment limit, set in 2021, stands at 20,000 kroner.
The Danish government plans to propose a bill to reduce this limit to 15,000 kroner.
Currently, cash is used in about 10 percent of in-store transactions in Denmark, with 90 percent of these payments amounting to 500 kroner or less.
The 2024 budget – and its implications
The 2024 state budget brings a mix of changes that will affect the daily lives of Denmark's residents, including international citizens living in the country.
READ MORE: How will Denmark's 2024 budget affect you?
A special fund will be established to make repairing household appliances such as washing machines and refrigerators more affordable, aiming to promote a circular economy and sustainability. This is likely to involve a pool to which business can apply for funding related to circular economy businesses like repair shops. Tax deductions, training in repairs and help accessing spare parts are also potential elements.
Furthermore, more homes will be connected to district heating, enhancing energy supply security. Electric car owners can expect the tax deduction for zero-emission cars to remain unchanged from 2023 to 2025, providing savings when paying car registration tax.
Additionally, there will be increased tax subsidies for commuters in rural areas and lower ferry ticket costs for smaller outlying islands through subsidies to operators.
Rail fares set to increase
Starting in 2024, rail ticket prices in Denmark will increase by up to 13 percent, with most regions experiencing higher fares.
The extent of these changes varies by region and ticket type, averaging around 10 percent.
These price adjustments apply to various aspects of rail travel, such as prepaid Rejsekort usage and Pendlerkort for commuters.
The “price regulation” which will take effect next year comes after a “backlog of costs from 2022 and 2023”, national rail operator DSB said when it announced the changes.
READ ALSO: Rail fares set to increase across Denmark in 2024
Slight change to work permit case processing
Work permit applications, including those under programs like the Pay Limit Scheme, the Fast Track Scheme, and the Positive List, are subject to new income statistics from the beginning of next year.
These statistics, provided by the Confederation of Danish Employers, will be updated quarterly, with the next update effective from January 1st, 2024.
This means that applications submitted from October 1st onwards will be assessed based on income statistics from the second quarter of 2023, while earlier applications will rely on statistics from the first quarter of 2023.
Remember to check your Danish preliminary tax return in January
Preliminary tax returns or forskudsopgørelser for the forthcoming year are released in November, meaning they can carry information over from the preceding tax year, using information from the most recent tax return. Tax years in Denmark follow calendar years.
If your circumstances have changed during 2023, it’s therefore a good idea to update your preliminary tax returns as early in the year as possible, because it ensures accurate tax payments from the beginning of the new year.
The Danish tax authority, Skat, advises updating your preliminary return — a projection of your expected income for the year along with the deductions you’re eligible for — if your circumstances have changed in one or more of the following ways:
- Changed jobs
- Been promoted or received a salary increase
- Taken on a mortgage
- Refinanced your mortgage
- Changed your commute
“It’s never too late to go in and check your preliminary tax return. You can do that every day, all year round. It’s just important to do it now in relation to the paycheck for January,” Danish Tax Authority junior director Jan Møller Mikkelsen told news wire Ritzau a year ago.
“We experience increasing numbers of calls from the public in January when people can’t understand why the first payment of the year is wrong,” Mikkelsen said.
“Now is the time to go in and check the preliminary tax return if you want to ensure the correct wages are paid in January,” he said.
READ ALSO: Why it pays to check your Danish preliminary tax return in January
The now-scrapped Great Prayer Day holiday
After heated parliamentary and public debate in 2023, the government pushed through with its decision to abolish the Great Prayer Day from 2024 onwards.
That means that this centuries-old holiday, observed in Denmark for over three hundred years, will no longer provide a public day off starting in 2024. The last Great Prayer Day holiday occurred on May 5th, 2023.
Great Prayer Day traditions like confirmations and baking hveder, cardemom-infused buns, are likely to still be practiced as part of this springtime tradition, but most people will now have to fit them around work.
Plastic Rejsekort to be gradually phased out and replaced by app
In an exciting development for commuters and travellers navigating Denmark's extensive public transportation system, the era of the plastic Rejsekort is drawing to a close.
Instead, a new mobile app is set to change how passengers pay for their journeys.
READ MORE: Denmark’s Rejsekort to be replaced by app
Starting in 2024, passengers utilizing Danish buses, trains, and metros will have the option to bid farewell to their physical Rejsekort and welcome a digital counterpart.
The 2024 rollout of the mobile app will initially provide passengers with the choice between the digital version and the traditional physical card, but the gradual phasing out of the physical Rejsekort is also on the horizon.
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