Denmark raises depreciation rate for eco-friendly investments to 108% for 2025–2026.
Denmark’s parliament passed Bill L 195 on 3 June 2025, modifying the Depreciation Act to reflect the government’s earlier decision to boost tax deductions for eco-friendly investments.
Under the new rules, businesses can claim an 8% higher depreciation rate for investments in sustainable production that support environmental goals, raising the total depreciation basis to 108% instead of the usual 100%.
This measure applies to qualifying investments made between 1 January 2025 and 31 December 2026.
Earlier, Denmark’s Ministry of Taxation introduced Bill L 195 on 9 April 2025 to establish a temporary increase in the depreciation basis for certain new green assets, as part of the green investment window linked to the Agreement on Green Tax Reform.