Denmark to compensate 500,000 homeowners for tax surcharges

The Danish government plans to compensate up to 500,000 homeowners for interest and percentage surcharges incurred due to delayed property valuations. Minister for Tax and Growth, Jakob Engel-Schmidt, intends to introduce legislation later this year to establish a compensation scheme with retroactive effect dating back to 2021.

The issue stems from years of delays in final property assessments. During this period, homeowners were taxed based on preliminary valuations. When final assessments were eventually calculated, some owners faced additional tax liabilities because their property values were higher than initially estimated. Under existing rules, these back taxes were subject to interest and surcharges, despite owners having no way to know the correct amount earlier.

The Ministry of Taxation estimates the scheme will affect approximately 500,000 homeowners and will cost the state a significant amount. Affected individuals are not required to take action, as the refunds are expected to be processed automatically, likely during 2027.