Denmark seeks fast-track law to adjust property valuations before summer break

Denmark's tax minister, Jakob Engel-Schmidt, is pushing for a legislative solution to address delays in property valuations. The proposed bill, slated for its first parliamentary reading soon, aims to bypass the traditional assessment process for 2026 and 2027.

Instead of new valuations, the government plans to use figures from 2022 and 2023 and adjust them based on regional property price increases. This approach seeks to offer immediate relief to homeowners, mitigating the risk of unexpected tax bills. "With this bill, we create more calm about property taxes right now. We reduce the risk of families receiving a large back tax that can strain the economy," Engel-Schmidt stated in a press release.

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With this bill, we create more calm about property taxes right now. We reduce the risk of families receiving a large back tax that can strain the economy.

The proposed legislation also intends to allow the Danish Tax Agency and the Tax Appeals Agency to reallocate staff. These employees would then focus on clearing the backlog of new property assessments and speeding up the process. The plan has already received support from the government coalition parties. However, the bill would also significantly restrict the ability to appeal property valuations until 2029. Many homeowners have not yet received their 2022 assessment, and only a small fraction of commercial properties have been finally assessed.

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At the same time, it will help the Tax Agency and the Tax Appeals Agency to temporarily release a larger number of employees, who can instead focus on getting new property valuations out on time and reducing the case backlogs.