Denmark has passed new legislation extending the use of indexed property valuations to 2026 and 2027, while also introducing a unified property category for agricultural, forest and nature properties. We take a closer look at the key changes and their practical implications for property owners and investors.
Act No. 615 of 30 June 2026 amending the Danish Property Assessment Act, the Danish Property Tax Act and various other acts came into force on 1 July 2026. The Act introduces a number of changes to the Danish property valuation and taxation regime, including the continued use of indexed property valuations, a new statutory property category for rural zone properties and several procedural amendments affecting property owners and investors.
To facilitate the transition to the new property valuation system, the 2024 and 2025 tax valuations were simplified by calculating them as indexed versions of prior valuations, rather than full individual assessments. The new sections 87 c and 88 b of the Property Assessment Act extend this simplified model to the 2026 and 2027 valuations. This is intended to enable valuations to be issued earlier and thereby reduce the need for retroactive adjustments and the risk of residual tax liabilities.
For residential properties, which are valued in even-numbered years, the 2026 valuation will generally be determined by indexing the most recent valuation listed in sections 87 b(2) and (3) of the Property Assessment Act — which will typically be the 2022 valuation, but may also be a subsequent reassessment or amended valuation — to 2026 price levels. Similarly, the 2027 valuation for properties valued in odd-numbered years will generally be determined by indexing the most recent valuation listed in sections 88 a(2) and (3) to 2027 price levels.
At the same time, the indexed valuations are not subject to administrative appeal. This applies to both ordinary indexed valuations under sections 87 c(2) and 88b(2) and to the indexation element of reassessments under sections 87c(3) and 88 b(3). However, the underlying valuations on which the indexed valuations are based remain subject to the ordinary rules governing reassessment and appeal.
The Act introduces a new, unified statutory category for agricultural, forest and nature properties under section 3 of the Property Assessment Act. This replaces the two previous separate categories for agricultural properties and forest properties respectively.
Under the previous rules, properties were categorised as residential, agricultural, forest or commercial, based on the property’s overall character, including whether the residential, agricultural or forestry element predominated.
From the 1 January 2027 valuation date, rural zone properties will generally fall within this single category, unless the property is primarily used or intended for residential or commercial purposes.
This unified category is designed to encompass properties in rural zones that are used for nature, biodiversity, wetlands, fallow land or other extensive purposes, thereby enabling such properties to benefit from the more favourable valuation and taxation rules currently applicable to agricultural and forest properties.
Notably, the Act introduces a new section, 33 a, under which property owners may request a binding ruling from the Danish tax authorities on how an actual or intended change to a property will affect its statutory categorisation. This is provided that the property is currently categorised as an agricultural, forest or nature property (or was previously categorised as an agricultural or forest property), is substantially located in a rural zone and the actual or intended change constitutes grounds for revaluation.
For properties transitioning from residential or commercial categories to the agricultural, forest or nature category on the 1 January 2027 valuation date, the Act provides for an advance categorisation procedure under the new section 83 d of the Property Assessment Act.
Rather than awaiting the ordinary 2027 valuation, the Danish Tax Agency will issue a separate advance decision on categorisation prior to that valuation. This is intended to provide owners with early certainty regarding the future categorisation of their property and the resulting tax implications. At the same time, the advance categorisation enables owners to consider the transitional scheme under section 83 c, whereby the property may continue to be treated as residential until a change of ownership occurs or until the conditions for revaluation under section 6(1)(6) and (7) of the Property Assessment Act are met. It should be noted that once made, the choice to opt into the transitional scheme cannot be reversed.
Advance categorisation is accompanied by the assignment of a preliminary tax base under the new section 84 b of the Property Tax Act. This is applicable to properties transitioning from a residential or commercial categorisation to the agricultural, forest and nature category pursuant to section 83 d. The preliminary tax base is used to assess property value tax, land tax and coverage charges until the first ordinary valuation or revaluation is issued. The preliminary tax base is not binding and may be adjusted at any time by the property owner.
The Danish Tax Agency expects to commence processing in the second half of 2026, with advance notices, offers under the transitional scheme and preliminary tax bases expected to be issued in the first quarter of 2027.
The Act introduces a new section, 6(2), to the Property Tax Act, under which a property owner may apply to the relevant municipal council for an exemption from any increase in land tax arising from the subdivision of a property into owner-occupied units in connection with the creation of new residential units in the unused loft space of an existing building or in one or more new storeys. The exemption applies where the newly created units are designated for residential use or residential rental.
The purpose of this provision is to eliminate a tax-related disincentive to the optimal utilisation of existing buildings, particularly in major urban areas.
Two further procedural amendments are of practical relevance.
First, the ordinary deadline for requesting a reassessment of the 2022 and 2023 valuations, which serve as the basis for the indexed 2026 and 2027 valuations respectively, has been extended by two years under section 33(1) of the Tax Administration Act. The deadline for reassessment of the 2022 valuations is accordingly extended to 1 May 2030 (from previously 1 May 2028), and the deadline for reassessment of the 2023 valuations to 1 May 2031 (from previously 1 May 2029). This extension applies equally to the tax authorities’ own right of reassessment.
Second, the reaction deadline for repaying overpaid property taxes in cases of extraordinary reassessment has been extended from 18 to 36 months under section 74 a(1) of the Property Tax Act.
The new legislation affects property valuations, tax liabilities and statutory categorisation across a wide range of Danish real estate assets. Whether you own residential, commercial or rural zone properties, the changes may have implications for your current and future tax position.
Gorrissen Federspiel’s Real Estate group advises on all aspects of the Danish property valuation and taxation regime and can assist with the following:
We continue to monitor developments in the Danish property valuation and taxation regime closely and are happy to provide a specific assessment of how the new rules may affect your property portfolio or contemplated transactions.