On Nov. 27, DEN GVT issued amending Act on property taxes.
DEN GVT published Act amending the Property tax act, the Property valuation act, the Tax control act and the Withholding tax act (adjustments to the pensioner loan scheme for payment of land debt and provisional basis of taxation in cases of subdivision, etc.).
Summary
During the transition to the new business assessments, increased security must be created for companies liable to cover tax by introducing an increase limitation scheme.
Under the increase limitation scheme, increases in tax are phased in over time.
Coverage tax for commercial properties cannot increase by more than 10% annually.
It was agreed that increase limitation will be retroactively applied from and including 2022, so that subsequent adjustments to cover charge will be significantly reduced.
Act includes adjustments to pensioner loan scheme on loan for payment of land debt.
A mortgage must be registered at the latest when the lending exceeds a limit of DKK 18,300, and pensioners must have opportunity to document actual outstanding debt, so that even more pensioners will have opportunity to borrow to pay their land debt.
Effectiveness
Law enters into force on Jan. 1, 2025; however, a single element in the Act comes into force on Dec. 2, 2024.
