Danish home-owners can look forward to higher taxes. In its new property assessments, SKAT (the Danish Tax and Customs Administration) has determined that Danish land is increasing in value, which will mean increased costs for Danish home-owners in the coming years.
When the value of a plot of land increases, the land value tax increases, which in turn means an overall increase in property tax.
Ceiling on increase
The big tax increases will not come into effect from day one because a tax increase ceiling only allows a 4.3 per cent rise in any given year. Instead, the increases will be phased in over a period of 4 years in some places right up to 20 years in Frederiksberg.
According to calculations made by Danske Bank, the municipalities will earn DKK 1-2 billion in extra revenue from the higher land value tax.
The new assessments will enter into force this year.
You can see SKAT’s land value increase for your area in the graphic above.
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