Denmark Housing Tax Freeze Loan Guide (Boligskattelaan 2026)

How the Housing Tax Freeze Loan Works

The housing tax freeze loan (boligskattelaan) is a mechanism introduced as part of Denmark's 2024 property tax reform to protect homeowners from sharp increases in property taxes. The reform replaced the old property tax system (which was based on outdated 2011 property valuations) with a new system based on current public property assessments (ejendomsvurderinger). To prevent homeowners from facing sudden large tax increases due to the transition, the government introduced a tax freeze option: if your total housing tax (property value tax + land tax) increases from one year to the next, you can choose to borrow the increase from the state through an interest-bearing loan administered by SKAT. The loan is tied to the property and is repaid when you sell it — or earlier if you choose to. You are not required to take the loan — you can opt out and simply pay the higher tax. The decision is made annually through your preliminary income assessment (forskudsopgørelse) by checking or unchecking a box.

Key features of the post-2024 loan: The loan is administered by the Danish state (SKAT), not by municipalities. It carries an interest rate determined by SKAT (approximately 4–6% per annum as of 2026, based on the Danish National Bank's interest rate plus a margin). You can see and repay the loan by logging into Boligskattelaan.skat.dk using MitID. The loan is established in January of the year following the tax increase. For example, a tax increase in 2025 would result in a loan being established in January 2026. You can repay all or part of the loan at any time without penalty. The loan is secured against the property — when you sell, the outstanding balance plus accrued interest must be repaid from the proceeds. Unlike a traditional mortgage, the loan cannot be transferred to a new property when you move. If you downsize or move to a rental, the loan becomes due.

Pre-2024 vs Post-2024 Loans

The distinction between pre-2024 and post-2024 housing tax loans is important. Before 2024, property tax loans were administered by individual municipalities. These older loans were interest-free and covered increases in property tax before 2024. If you had a pre-2024 municipal loan, it is still registered at your municipality — it remains interest-free and continues according to its original terms. From 2024 onward, the state took over administration of all new property tax loans. If you had a pre-2024 municipal loan, a new interest-bearing loan is automatically established to cover property tax increases from 2024 onwards, in addition to your existing interest-free municipal loan. This means some homeowners may have two separate loans: an old interest-free municipal loan (covering pre-2024 increases) and a new interest-bearing state loan (covering 2024+ increases). If you do not want the new interest-bearing loan, you can opt out through your preliminary income assessment.

Managing your existing municipal loan: If you had a loan at your municipality before 2024, it remained with the municipality and continues to be interest-free. Contact your municipality for details on the outstanding balance and repayment terms. When you sell your property, both the municipal loan and the state loan must be repaid. The municipal loan repayment goes to the municipality, while the state loan repayment goes to SKAT. The combined debt can affect your net proceeds from the sale, so it is important to track both. If you are unsure whether you have a pre-2024 municipal loan, check your tax assessment notice from 2023 or earlier — the loan was typically reflected in your property tax calculation. You can also contact your municipality's property tax department to inquire.

Opting In or Out via Field 651

You decide whether to take the housing tax freeze loan through your preliminary income assessment (forskudsopgørelse) in field 651. In this field, you tick "Ja" (Yes) if you wish to take out a loan to cover any property tax increase. Tick "Nej" (No) if you want to opt out of the scheme and pay the higher tax directly. The loan is established in January of the subsequent year. For example, to freeze a 2026 tax increase, you make your selection in the 2026 forskudsopgørelse (which you typically file in late 2025 or early 2026), and the loan is established in January 2027. If you initially opt in and then change your mind, you can cancel the loan by updating your forskudsopgørelse before the loan is established. Once the loan is established, you can still repay it at any time through Boligskattelaan.skat.dk.

How to change field 651: Log on to E-tax (TastSelv Borger) at tastselv.skat.dk using MitID. Select "Forskudsopgørelsen" (Preliminary income assessment). Go to "Andre felter" (Other fields) and search for field 651 ("Boligskattelaan — ja/nej"). Select "Ja" to opt into the freeze loan or "Nej" to opt out. Click "Beregn" (Calculate) to see the effect on your tax. Click "Godkend" (Accept) to confirm. Your choice applies to the current income year. You must repeat this decision each year — the choice does not automatically carry forward. If you do not actively make a selection, SKAT may default to the previous year's choice or may not establish a new loan, depending on the current rules. Always verify your selection before the deadline.

Should You Take the Freeze Loan?

Whether the housing tax freeze loan is right for you depends on your financial situation, your time horizon, and the interest rate. Arguments for opting in: The loan improves short-term cash flow by deferring property tax increases to the future. If your property value is rising rapidly, the frozen tax increase may be significant, and the loan allows you to avoid selling assets or cutting spending to pay the higher tax. The loan is secured against the property, not against your personal income, so it does not affect your credit score or debt-to-income ratio for mortgage applications. Arguments for opting out: The loan carries an interest rate of approximately 4–6%, which may be higher than your mortgage rate. Unlike mortgage interest, the loan interest is not deductible under the rentefradrag (interest deduction). The loan must be repaid when you sell — if you plan to sell within a few years, the accumulated loan balance plus interest could reduce your net proceeds significantly. For retirees on fixed incomes, the loan may make sense because it defers the tax to a future sale when the estate will handle repayment.

Strategic considerations: If your mortgage interest rate is below 3% (as many fixed-rate Danish mortgages are), the boligskattelaan at 4–6% is expensive debt — you would be better off paying the tax increase directly and avoiding the loan. If your mortgage is variable rate (F-kort, Cibor6) at around 4–5%, the loan rate is closer to your mortgage rate, and the decision is less clear-cut. Consider your liquidity: if paying the higher tax would require you to sell investments or reduce savings, the loan may be worthwhile. Also consider the tax treatment: housing tax is not deductible, while mortgage interest is — so taking a larger mortgage to cover the tax increase provides an interest deduction, whereas the boligskattelaan does not. If you itemise deductions, a mortgage increase may be more tax-efficient. Consult a Danish tax advisor or financial planner for personalised advice. See our mortgage guide → for more on Danish mortgage options.

Repaying the Loan

You can repay the housing tax freeze loan at any time through Boligskattelaan.skat.dk. Log in with MitID, view your outstanding balance and accrued interest, and make a repayment. You can repay the full balance or make partial repayments. There are no penalties for early repayment. The loan must be fully repaid when you sell the property — the repayment is made from the sale proceeds through the conveyancing process (similar to how a mortgage is repaid on sale). If the sale proceeds are insufficient to cover the loan (e.g., in a falling market), you remain personally liable for the balance. The loan is registered against the property, so the buyer's solicitor and your bank will ensure it is repaid during the sale.

Interest calculation: Interest accrues daily on the outstanding balance. The interest rate is set by SKAT and published annually. For 2026, the rate is approximately 4–6%, calculated as the Danish National Bank's official lending rate plus a margin. The interest is added to the loan balance — you do not make separate interest payments unless you choose to. When you sell, the accumulated interest is added to the principal repayment. The interest paid on the boligskattelaan is not deductible for tax purposes (unlike mortgage interest). This is a significant disadvantage compared to financing the tax increase through a larger mortgage. If you have a mortgage with a low interest rate, compare the after-tax cost: mortgage interest after the 27–33% deduction may be cheaper than 4–6% non-deductible boligskattelaan interest.

FAQs

Is the boligskattelaan automatically applied if I do nothing?

No. You must actively select "Ja" in field 651 of your preliminary income assessment to opt into the loan. If you do nothing, SKAT may not establish a loan, and you will be expected to pay the full housing tax increase directly through your tax assessment notice. Always verify your selection each year.

Can I take the loan for some years but not others?

Yes. You make the decision annually through your forskudsopgørelse. You can opt in one year, opt out the next, and opt in again the following year. Each year's decision is independent. If you opt out in a given year, any loan established in prior years remains outstanding and continues to accrue interest.

Does the loan affect my ability to sell my property?

No. The loan is automatically repaid from the sale proceeds. It does not prevent or delay a sale. However, the outstanding balance plus accrued interest reduces your net proceeds. If you have a large accumulated loan balance, you may want to repay it before selling to simplify the transaction.

What happens if I move to a new property?

The loan is tied to the specific property. When you sell, the loan must be repaid. If you buy a new property, you may take out a new boligskattelaan for that property if tax increases occur. The loan does not transfer with you. If you move to a rental property, the loan is still due upon the sale of your former home.

How do I find out my current boligskattelaan balance?

Log in to Boligskattelaan.skat.dk using MitID. The website shows your outstanding principal balance, accrued interest, and total amount due. You can also see the loan on your preliminary income assessment under field 651 and related fields. If you have a pre-2024 municipal loan, contact your municipality directly for the balance.