Feb 25 • 00:00 UTC 🇩🇰 Denmark Altinget

Electric Mayor Acknowledges: Proposal for Housing Tax Will Impact Ordinary Copenhageners

The proposal by Enhedslisten aims to impose a 15% tax on all housing gains over one million kroner, which critics argue will also affect regular homeowners.

The Electric Mayor acknowledges the potential fallout from a new housing tax proposed by Enhedslisten. The party's plan suggests a taxing scheme that would levy 15% on all housing profits exceeding one million kroner. Although initially aimed at speculators who profit from the lucrative Copenhagen property market, experts caution that this could extend far beyond that intended target. Curt Liliegreen, director of the Housing Economic Knowledge Center, warns that many ordinary homeowners—such as retirees who have owned their homes for decades, or average wage earners with houses in provincial towns—could find themselves affected by this new tax structure.

The proposal raises concerns, particularly for pensioners who purchased homes long ago, often with no expectation of profit, and for those in average wage brackets who might unintentionally fall into the tax net due to rising property values. Liliegreen’s insights suggest that the tax could inadvertently penalize those who have simply chosen to make their homes rather than those who are engaging in speculative real estate transactions. As housing affordability continues to be a hot topic in Copenhagen, this tax proposal has the potential to reshape the landscape for many homeowners.

Critically, the implications of the proposed tax could lead to an increased financial burden on ordinary residents, challenging the notion of housing as a basic necessity rather than a commodity. If enacted, this proposal will likely spur a broader debate on housing policies in Denmark, potentially prompting reevaluation of how property taxes are structured and who they ultimately serve. Balancing the need to disincentivize speculation while ensuring that the financial impact on ordinary citizens is minimal will be key as the discussion progresses.

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