The effect of the law change is that the depreciation rate for commercial properties, including buildings and installations, will be reduced from 4% to 3% as of 2023. Note that this change only applies to properties acquired in 2023 or later. Properties acquired before 2023 can still apply the 4% depreciation rate.
Blue Capital has taken this legislative change into account in their budget assumptions since summer 2022 and the change is expected to have limited impact on their future projects.
Regarding depreciation of commercial property and installations, it should be noted that you can generally depreciate buildings used for business purposes, with the exception of buildings rented out for residential use or used for purposes such as offices or medical clinics. Land cannot be depreciated, but special installations in e.g. office buildings can be depreciated.
As of January 1, 2023, buildings and installations used for business purposes can be depreciated for tax purposes at 3% of the acquisition cost annually from the year they are put into use.
If you would like further information or advice on tax depreciation or property taxation, you are welcome to contact BUUS JENSEN by phone +45 3929 0800 or buusjensen@buusjensen.dk.