Forsigtighedsprincip (prudence principle)
The prudence principle means you pay Danish property tax on only 80 % of the public valuation. A 20 % deduction is applied to both the property value and the land value before ejendomsværdiskat and grundskyld are calculated, to absorb the uncertainty in any valuation.
The prudence principle (forsigtighedsprincippet) means you pay Danish property tax on only 80 % of the public valuation. A 20 % deduction is applied to both the property value and the land value before ejendomsværdiskat and grundskyld are calculated, to absorb the uncertainty in any valuation.
The tax base is 80 % of the valuation. A property valuation of 4,000,000 kr. gives a base of 3,200,000 kr., and that is the figure the tax is calculated on.
The deduction applies to both the property-value tax (on the ejendomsværdi) and the land tax (on the grundværdi).
It is automatic. You do not apply for it, and it follows the new market-based valuation from Vurderingsstyrelsen.
The 20 % is not a discount you can lose. It is a fixed part of how property tax is calculated after the 2024 reform.
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