A new law in Denmark will increase property valuations and taxes for owners of commercial buildings in most municipalities, correcting what the government calls a technical legal error.
Higher valuations on the way
A legislative change expected to pass in the Danish Parliament will cause property owners, tenants, and housing cooperatives in 81 municipalities to receive higher assessed values over the next two years. These values will determine how much they pay in tax in 2026 and 2027. Meanwhile, only 17 municipalities will see reduced assessments.
The change affects a large share of Danish commercial properties, including office buildings, warehouses, rental apartments, and cooperative housing units. The Ministry of Taxation estimates that the adjustment will add just over one billion Danish kroner to state revenue during the next two years.
Why the law changed
The adjustment came about because of an error in the legislation adopted in 2023. That law directed officials to base future property valuations on price developments for commercial real estate. However, the ministry now says this was a drafting mistake.
The new amendment replaces that formula with one based on the price trend for owner-occupied homes, such as single-family houses and townhouses. This correction aligns with how the 2021 political agreement stated commercial properties should be indexed. Because residential prices have risen more than commercial prices between January 2023 and January 2025, this change leads to higher valuations—and higher property taxes.
If the government had kept the original rule, the state treasury would have collected roughly one billion kroner less. In practice, this means owners of business-related buildings will carry an additional tax burden over the next few years.
How the calculation works
Due to delays in Denmark’s new property valuation system, the 2025 valuations will not rely on individual inspections. Instead, each property category’s assessed value will reflect the average price movement in its area from early 2023 to early 2025. Authorities will then apply that adjustment to the prior valuation.
For example, a commercial building in Copenhagen with a 2023 valuation of 50 million kroner would have dropped to about 46.85 million kroner if the old commercial property index were used. Under the new residential-based method, the same property’s value climbs instead—to roughly 52.1 million kroner. That difference of more than ten percent illustrates how strongly the new index influences tax payments.
Delayed system and technical oversight
Denmark’s property valuation reform has faced several years of setbacks. Officials introduced the 2025 valuation as a way to simplify the process and manage administrative delays at the tax authority. Even though this new method helps speed up the reassessment process, it relies heavily on accurate legal wording. That is where the “technical referencing error” occurred, according to the Ministry of Taxation.
Without this correction, some property owners would have paid too little tax while others too much. The government emphasizes that no one has yet been overcharged, since the updated valuations have not taken effect. The correction aims to ensure the intended political outcome rather than change tax policy retrospectively.
Impact across municipalities
Maps prepared by national broadcasters show that most Danish municipalities will see an increase in commercial property valuations. In Copenhagen, Aarhus, and other high-demand areas, the effect will be especially visible. Smaller towns, however, may experience either minor increases or small declines depending on local price trends.
For property owners considering investments or sales, this change could influence decision-making in the short term. It also ties into wider discussions about buying property in Denmark and how international investors assess long-term taxation uncertainty.
What comes next
Parliament is expected to approve the new measure shortly. Once passed, the updated valuations will form the basis for property tax bills in 2026 and 2027. According to ministry projections, the state would have lost about 500 million kroner in 2026 and another 550 million in 2027 had the mistake remained uncorrected.
While the change may frustrate property owners facing higher costs, officials insist the correction simply restores the law to its intended design. The new assessments will reflect price developments more accurately, linking property taxes to real market growth rather than outdated commercial figures.
Sources and References
The Danish Dream: What is the GDP of Denmark
The Danish Dream: Buying Property in Denmark for Foreigners
DR: Danmarkskort: Så meget stiger vurderingen af erhvervsejendomme med ny lov
