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Generic Tax Name Tax on real estate - Municipal land tax
Tax name in the national language Kommunal grundskyld
Tax name in English Municipal land tax
Member State DK-Denmark
Tax in force since 1688/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Statutory Notice No 1067 of August 2013 (Vurderingsloven).

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

The municipality in which the property is situated.

 
Geographical Scope

 
Taxpayers

 
Tax object and basis of assessment

Real property situated in Denmark with certain exceptions mentioned below.

 

Basis of assessment is the lowest of the following:

  •  Actual land value
  • Last years land value, increased by an adjustment percentage. The adjustment percentage (reguleringsprocenten) is calculated yearly and is between 3 and 7 percentage.

The latter giving a tax ceiling on yearly increases in the municipal land tax.

 
Deductions, Allowances, Credits, Exemptions

Exemptions:

Municipal land tax may not be remitted or reduced in any other way without express statutory authority. The most important exemptions are as follows:

-properties which are exempted from public assessment (cemeteries, public streets and roads, squares, railways, etc.) receive obligatory exemption from municipal land tax, as well as property owned by the State or the municipalities ( with the exception of those which are used commercially), the embassies and consulates of foreign States and property belonging to certain international organisations;

-the municipal council may give partial or full exemption from land tax to private or other non‑profit‑making institutions and to power stations, gasworks, waterworks and district heating stations.

For land used for agriculture, market gardens etc. the tax rate is 14.8‰-point below the normal rate set by the municipalities with a maximum land tax of 7.2‰ of the taxable land value

 
Rate(s) Structure

The municipalities will collect a land tax which may vary from 16‰ to 34‰ of the basis of assessment.

Concerning the base of assessment (the land value) there is a threshold of 6.4% in 2015 (accordring to 'grundværdiregulering') on the annual increase of which owners of real estate are taxed.

 
Tax due date

 
Tax collector

In two or more equal instalments in accordance with more detailed provisions laid down by the municipal authorities.

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d29aa + d29ab

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 20,946.87 DKK 1.11
2011 20,546.53 DKK 1.12
2010 19,644.48 DKK 1.09
2009 18,101.53 DKK 1.06
2008 17,000.16 DKK 0.95
2007 15,601.27 DKK 0.90
2006 14,842.14 DKK 0.88
2005 14,348.96 DKK 0.90
2004 14,013.27 DKK 0.93
2003 13,511.43 DKK 0.94
2002 12,848.03 DKK 0.91
2001 12,020.00 DKK 0.88
2000 11,118.73 DKK 0.84

Comments