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Danes can deduct around 25% of paid interests (and "contribution fees" on mortgages). A little more for paid interests below DKK 50000 yearly and a little less

Danes can deduct around 25% of paid interests (and "contribution fees" on mortgages). A little more for paid interests below DKK 50000 yearly and a little less for paid interests above DKK 50000. A typical home can sell for DKK 4M. With a 20 year 0% interest and 80% of the 4M mortgaged (the maximum allowed), the "contribution fee" would be set at 0,75%. That would amount to interests (0%) and "contribution fee" (0.75%) yearly around DKK 24000 (1st year) of which 25% = DKK 6000 will be deductible. To put that into perspective: A. An average "medium level" worker will have an average income of DKK 466,660/year[1] and pay DKK 159,212 in taxes, leaving a post-taxes income of DKK 307,448. B. An unemployed will receive DKK 225,894/year and pay DKK 58,952 in taxes, leaving a post-taxes income of DKK 166.942 So in reality the mortgage tax deduction does not amount to much. With those low interest rates it is around DKK 6000 or DKK 500/month for a typical family. Compare DKK 6000/year or DKK 500/month to: - a pair of Levi's: DKK 660 - a 4G/5G plan with 50GB/month: DKK 160/month - iPhone 12: DKK 7000 [1] https://www.dst.dk/en/Statistik/emner/arbejde-indkomst-og-formue/indkomster https://www.dst.dk/en/Statistik/emner/arbejde-indkomst-og-fo...

djanogo 6y ago
Are the property taxes high?
- useerup 6y ago
  There's a property tax of 1% for home values up to around DKK 3M, and 3% for the value above 3M. That is the based on the "official estimated value", however, which is typically conservative and lagging and therefore somewhat less (like e.g. 60%) of what the property actually sells for. The 3M is set so that the vast majority of homes will not exceed this value. In addition to that we pay a "lot tax" which varies by municipality between 1.6% -3.4% of the value of the lot without the buildings.

djanogo 6y ago

Are the property taxes high?

useerup 6y ago
There's a property tax of 1% for home values up to around DKK 3M, and 3% for the value above 3M. That is the based on the "official estimated value", however, which is typically conservative and lagging and therefore somewhat less (like e.g. 60%) of what the property actually sells for. The 3M is set so that the vast majority of homes will not exceed this value. In addition to that we pay a "lot tax" which varies by municipality between 1.6% -3.4% of the value of the lot without the buildings.