Press Release
Danish tax delay brings temporary relief to Europe’s used BEV market
One-year postponement of Denmark’s registration tax increase offers short-term protection to Europe’s cross-border used BEV markets
Odense, November 2025 — The Danish government has announced a one-year postponement of the planned increase in the national Registration Tax applied to battery-electric vehicles (BEVs).
Initially set to rise from 40% to 48% in January 2026, the tax will now remain unchanged throughout 2026, before increasing to 48% in 2027 and 56% in 2028. The decision, which still awaits formal ratification in December, represents a significant development for the European automotive market — and in particular for cross-border used-car trade.
This delay brings short-term relief to the European used-BEV ecosystem, which had been preparing for a sharp slowdown in Danish import demand next year. Denmark is one of Northern Europe’s largest importers of used electric vehicles, primarily sourced from Germany, the Netherlands, and France.
A higher registration tax would have made these vehicles significantly more expensive for Danish buyers, immediately reducing cross-border volumes and exerting downward pressure on BEV prices across the EU.
“Without this delay, Danish demand for imported used BEVs — particularly from Germany, the Netherlands, and France — would have declined sharply in 2026,” explained,” Yoann Taitz, Regional Head of Forecast & Market Expert at Indicata.
“Keeping the rate at 40% effectively shields Europe’s cross-border markets, maintaining a healthy balance between local and imported BEV supply,” he added.
The Registration Tax plays a central role in Denmark’s automotive market, applying to both new vehicles registered locally and used cars imported from other EU countries. For BEVs, this tax has been increasing gradually since 2021 as part of a government effort to realign the fiscal treatment of electric vehicles with that of internal combustion engines.
By maintaining the lower rate for another year, authorities aim to preserve consumer affordability and market stability, at a time when BEV adoption across Europe faces slower momentum and stronger price sensitivity.
However, the measure’s impact varies depending on the perspective. For Danish consumers, it means an additional year of lower purchase prices — both for new and imported electric cars. For European exporters, it secures an important commercial outlet in Denmark, protecting sales volumes and supporting used- BEV values in source markets. Conversely, for local Danish sellers, the delay postpones the competitive advantage they would have gained once imported BEVs became more heavily taxed.
“It’s a mixed outcome,” said Taitz. “This move is positive for consumers and exporters in the short run, but it delays the natural market rebalancing where locally registered BEVs would have benefited from stronger value retention.”
While the government’s decision offers breathing space for buyers and crossborder sellers, the structural adjustment has merely been deferred. The progressive increases — 48% in 2027 and 56% in 2028 — remain on the books. When implemented, they are expected to moderate import volumes, support local residual values, and reinforce fiscal alignment between BEVs and ICE vehicles in Denmark.
Indicata’s latest analysis highlights how such fiscal shifts ripple far beyond national borders.
“Denmark acts as a fiscal barometer for EV flows across Northern Europe. Monitoring these changes allows market players to anticipate price movements, optimise remarketing channels, and manage portfolio risks more effectively,” concludes Yoann Taitz.
About Indicata
Indicata, part of the Autorola Group, is Europe’s leading platform for used-car
market analytics, stock management, and residual-value forecasting. Through its
Market Watch and STEEP Factors frameworks, Indicata provides OEMs, leasing
companies, banks, and remarketing professionals with real-time insight into
market trends and valuation risks across countries.