Denmark and Norway face shifting real estate and tax policies

Real estate and tax policies are facing significant shifts in Denmark and Norway. In Denmark, rising property taxes are expected to hit capital region municipalities hardest, with some areas seeing increases of up to 25 percent for houses and 24 percent for apartments. Conversely, approximately 200,000 Nordea customers in Denmark will benefit from lower mortgage contribution rates starting September 30.

In Norway, economic uncertainty surrounds interest rates and tax reforms. Economists predict that interest rates will remain high, with many expecting rates to stay at or above 4 percent through 2028 due to persistent inflation. This has led to consumer anxiety regarding mortgage affordability.

Simultaneously, the Norwegian Tax Commission has proposed reforms that have drawn criticism. Eiendom Norge is urging the government to reject proposals to increase residency requirements for tax-free gains, arguing such moves would unfairly penalize young people and those relocating for work. Additionally, Finanstilsynet has identified flaws in DNB’s mortgage practices, noting that the bank provided interest-only periods to wealthy clients based on uncertain dividend incomes rather than stable repayment capacity, and failed to use actual interest rates in stress tests.