Denmark Tax Agency admits 100,000 property assessments were incorrect

The Danish Tax Agency (Vurderingsstyrelsen) has admitted that approximately 100,000 property assessments for condominiums were calculated incorrectly due to errors in the valuation model. These errors, which affect about one-third of all condominiums in Denmark, have resulted in some properties being overvalued and others undervalued.

Anne-Sofie Jensen, Director of the Tax Agency, described the error as “unfortunate” but stated that for the vast majority of owners, the impact on their 2024 housing tax will be negligible or non-existent. However, legal experts have characterized the situation as a “serious error” because tens of thousands of final 2022 assessments were issued before the problem was addressed.

In response to the errors and declining public trust, Tax and Growth Minister Jakob Engel-Schmidt has proposed that homeowners dissatisfied with their assessments should have the right to an independent third-party review. The minister suggested that a “second opinion” could potentially be provided by local real estate agents to ensure legal certainty and restore confidence in the digital valuation system.