Deferral of housing taxes

Land tax is a tax you pay on the value of your land. It is also called property tax or land value tax and is calculated as a percentage (per mille) of the land’s value.

The property value tax is calculated as a percentage of the total value of the property – both the house and the land – and depends on the public property valuation and the property value tax rate.

Until the end of 2023, a temporary scheme applied.
From January 1, 2024, the deferral scheme became permanent as part of the new housing tax rules.

Previously, you could only defer increases in the land tax.
Now, you can also defer increases in the property value tax.

The loan accrues interest under the new rules, but you can wait to repay it until you sell your home – or choose to repay it in full or in part earlier.

The new deferral scheme is voluntary.
You can freely opt in or out via your preliminary income assessment on skat.dk.

The housing tax now follows the value of your property and will therefore rise or fall in line with the valuation.
However, most property owners will not see higher housing taxes due to lower tax rates, tax rebates, and the deferral option.

Deferral can be an advantage if you have a tight budget, are a first-time buyer, or want to free up liquidity.
The interest rate is typically lower than that of a bank loan, and there are no fees or contribution charges.

On the other hand, deferral means that your debt increases and the equity in your home decreases over time.
If your finances allow, it may therefore be wise to pay your property tax continuously.

From 2024, deferral is no longer interest-free.
The interest rate is set as the average of effective mortgage bond rates over the past 12 months.

2023: 1.53%
2024: 3.57%
2025: 3.54%

Interest is added when the loan is established – that is, in the year after the tax has been deferred.
If you have loans from before 2024, no interest will be charged on those.

From 2024, the state (not the municipalities) administers the scheme.
Loans established before 2024 remain with the municipality.

You can opt in or out of deferral scheme via TastSelv on skat.dk under your preliminary income assessment.
Here you can also see how much you have borrowed, repaid, or still owe.

A deferral loan is still a loan that must be repaid – typically when you sell your home.
If housing prices fall significantly, the loan may represent a larger share of your home’s equity, which can affect your finances upon sale.

You should always make use of buyer counselling when purchasing a home. At Minkøbermægler.dk, we look after your interests throughout the entire buying process as your personal adviser. Contact us today to learn more about how we can help you get through your real estate purchase safely.

Note, the real estate agent is hired by the seller and represents the seller’s interests throughout the whole process, while the buyer’s agent exclusively represents the interests of the buyer.

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Minkøbermægler.dk

Anders Klingenberg