Denmark Unveils 2027 Budget with Tax and Welfare Changes

Denmark has presented its budget proposal for 2027. Finance Minister Peter Hummelgaard announced the plan on Friday. The proposal brings big changes to taxes, welfare, and student grants. It will directly impact residents, workers, students, and families in Denmark.

The government plans to spend more on welfare and schools. Municipalities and regions will get billions of extra kroner. Schools will receive 1.2 billion Danish kroner. This money will support daycares and public elementary schools.

Student grant rules will become much stricter. Students living at home face new income limits. They lose grants if parents earn over 420,000 Danish kroner. Graduates must also work four hours weekly during studies to get unemployment benefits.

The government will gradually cover state-funded dental care. Universal non-cosmetic dental coverage is planned by 2035. Tax rules are also changing for workers and investors. The middle tax tier and top-top tax tier will be eliminated. The government will also triple the limit for tax-shielded Aktiesparkonto accounts. However, mortgage interest deductions will be capped.