Buying a home
You are entitled to deduct interest expenses if you have borrowed money to buy your home. Additionally, you need to pay property value tax and from 2024, you pay your land tax via your preliminary income assessment, if you have bought an owner-occupied home. Remember to change you preliminary income assessment when you buy a home.
Once you have received the title deed to your owner-occupied home, you are a home owner by definition. There are a lot of things to remember when you buy a home and one of them is to register your home and make declarations to the Danish Tax Agency (Skattestyrelsen).
When you buy a home it is important that you change your preliminary income assessment. You must:
- Register your new home. Please be aware that if you buy property after 1 September, you must correct your preliminary income assessment for the year in which you buy the property as well as the year after.
- Once the change of ownership has been registered, you will get a notification saying that your land tax is ready for your preliminary income assessment.
- Enter the interest expense you incur on your home loan to benefit from the deduction you are entitled to throughout the year.
See how you do this below under Changing your preliminary income assessment when you buy a home.
Change your preliminary income assessment
- If your new address is more than 12 km from your workplace, you are also entitled to a deduction for transport between home and work. You can also make this change in your preliminary income assessment. Read more about deductions for transport between home and work.
Once you have registered your new home in your preliminary income assessment, you are automatically charged property value tax via your income tax. You can see the calculation of your property value tax in your tax assessment notice.
Until and including 2023
You also have to pay land tax to your local municipality which is automatically informed when you buy a home.
Land tax is paid in instalments. You will receive a giro transfer form from the municipality stating the exact land tax payable.
You can see the land tax rates of your municipality at www.borger.dk. (Please note that the link is in Danish).
From 2024
Land tax is charged by the Tax Agency via your preliminary income assessment and tax assessment notice.
At the bottom of your tax assessment notice you can see the current public property assessment applying to your home. You may also look up your public assessment of property at any time. (Please note that the link is in Danish).
Please feel free to contact us if you have any questions about your public assessment of property.
When you buy a home or a holiday home, you have to enter the information in your preliminary income assessment.
Remember that land tax is not stated in your preliminary income assessment until the change of ownership is registered. We will get a notification at the time.
Next, you have to accept your new preliminary income assessment including the land tax. One way to do it is when you enter information about the property and interest expenses.
1. Log on to E-tax (TastSelv)
2. Select ‘Forskudsopgørelse’ (Preliminary income assessment) in the menu
3. Select ‘Købt ejendom’ (Property bought) under ‘Oftest tilføjede felter’ (Frequently added fields)
4. Select ‘Købt dansk ejendom’ (Danish property bought)
5. Enter the address or property number and select ‘Søg’ (Search)
6. Select ‘Fortsæt’ (Continue)
7. Complete the following fields:
- ’Renteudgifter’ (Interest expenses)
- ’Overtagelsesdato’ (Takeover date) and ’Indflytningsdato (moving-in date) if this is different from the date you took over the property. Please be aware that if you buy property after 1 September, you must correct your preliminary income assessment for the year in which you buy the property as well as the year after.
- ’Ejerandel i %’ (Percentage of property owned) (for example 50% if you buy the property with your spouse)
- ’Personoplysninger’ (Personal information) if you or your spouse receive any kind of pension benefits
8. Select ‘Registrer’ (Register)
9. Select ‘Beregn’ (Calculate) and check your changes
10. Select ‘Godkend’ (Accept) if you agree.
We will now generate a new tax card including your interest expenses and property value tax. If your land tax is registered, it will also be included in your preliminary income assessment. Under 'Ejendomme' (Properties) you can see if both the property value tax and land tax are included.
Your employer (or other provider) automatically receives your new tax card and it will take effect from your next salary.
You can share the property value tax by entering your respective share of the property owned in your preliminary income assessments.
Likewise, you can share interest expenses by entering your share in field 481, 483 or 485 in your preliminary income assessments.
As a home owner, you have 2 types of property tax. Land tax based on the value of the land stated in the most recent public property assessment and property value tax on the value of the property based on the public property assessment.
Land tax (property tax)
Land tax is calculated as a per mille (tax rate) of the value of your undeveloped land. Before the land tax is calculated, we deduct 20% of the value of the land to allow for various uncertainties that apply when a home is assessed.
Until the end of 2023, you pay land tax twice a year to your local municipality.
From 2024, your land tax will no longer be charged by the municipality but by the Tax Agency as part of your preliminary income assessment and tax assessment notice. This means that both property taxes (land tax and property value tax) will be charged by the Tax Agency as they are deducted from your income each month.
Property value tax
Property value tax is calculated as a per mille (tax rate) of the value of the property. Before the property value tax is calculated, we deduct 20% of the value of the property to allow for various uncertainties that apply when a home is assessed.
Property value tax is a tax property owners have to pay to the state based on your property value. The property value is the value of your real property including land and buildings.
All home owners have to pay property value tax, unless they rent out the property for business purposes.
You must pay property value tax from the day you move in. You pay this tax by entering your moving-in date in your preliminary income assessment.
From 2024, your land tax will no longer be charged by the municipality but by the Tax Agency as part of your preliminary income assessment and tax assessment notice. This means that both property taxes will be charged by the Tax Agency as they are deducted from your income each month.
For further legal information in Danish see our legal guide .