Authored by the expert who managed and guided the team behind the Denmark Property Pack
Everything you need to know before buying real estate is included in our Denmark Property Pack
Yes, foreigners can buy property in Denmark, but strict rules apply based on your nationality and residency status. Non-EU citizens need either 5 years of residency or special government permission, while EU citizens have more flexibility but still face restrictions on vacation homes.
If you want to go deeper, you can check our pack of documents related to the real estate market in Denmark, based on reliable facts and data, not opinions or rumors.
Denmark allows foreign property ownership with significant restrictions - EU citizens can buy primary residences freely but need 5 years residency for vacation homes, while non-EU buyers need 5 years residency or special permission for any property purchase.
Transaction costs range from 2.4-2.9% of purchase price, annual property taxes are 0.51-1.4%, and foreigners typically need 10-40% down payment for mortgages with current rates around 4.45-5.53%.
| Aspect | EU/EEA Citizens | Non-EU Citizens |
|---|---|---|
| Primary Residence | Can buy freely if residing | Need 5 years residency or permission |
| Vacation Homes | Need 5 years residency or permission | Need 5 years residency or permission |
| Mortgage Down Payment | 5-20% | 10-40% |
| Transaction Costs | 2.4-2.9% | 2.4-2.9% |
| Annual Property Tax | 0.51-1.4% | 0.51-1.4% |
| Capital Gains Tax | Exempt if primary residence | Exempt if primary residence |
| Legal Representation | Highly recommended | Highly recommended |
Can foreigners actually buy property in Denmark, and what are the key differences from locals?
Yes, foreigners can purchase property in Denmark, but face significantly stricter requirements than Danish citizens or EU residents.
Danish citizens can buy any type of property without restrictions. EU and EEA citizens enjoy similar freedoms for primary residences but must meet the 5-year residency requirement for vacation homes. Non-EU nationals face the toughest restrictions - they need either 5 years of continuous residency in Denmark or special permission from the Ministry of Justice for any property purchase.
The permission process evaluates your ties to Denmark through employment contracts, family connections, and community involvement. Corporate entities from the EU can also buy property if they establish a business presence in Denmark.
Summer houses and agricultural land remain particularly restricted regardless of nationality, with special permission rarely granted without demonstrating strong Danish connections.
Do I need Danish residency or a specific visa to purchase property?
You don't necessarily need residency to buy property in Denmark, but without it, you'll need government permission which involves a detailed application process.
EU citizens planning to use the property as their primary residence can typically obtain permission relatively easily. The Department of Civil Affairs reviews applications based on your intention to establish genuine residence in Denmark. You'll need to provide employment contracts, proof of income, and demonstrate your commitment to living in the country.
Non-EU buyers face stricter scrutiny. Without the 5-year residency requirement, your application must show compelling reasons for property ownership, such as Danish spouse, long-term employment contract, or significant business investments in Denmark.
The application typically takes 2-3 months to process and costs around DKK 1,000. Rejection rates are high for non-EU applicants without strong Danish connections, particularly for vacation homes.
Must I live in Denmark after buying property there?
If you purchase property with special permission as a non-resident, you must use it as your permanent residence - abandoning this requirement can result in forced sale.
Danish authorities don't specify exact days you must spend in the property, but it must genuinely serve as your primary home. This means maintaining utility connections, registering your address with the municipality, and demonstrating regular occupancy. Renting out the property full-time while living elsewhere violates the permission terms.
After meeting the 5-year residency requirement, these restrictions lift, allowing you to use the property as you wish. EU citizens who've established residency also gain more flexibility over time.
It's something we develop in our Denmark property pack.
Violations can lead to orders to sell the property within 6-12 months, with potential financial penalties for non-compliance.
Which property types can foreigners purchase - are there restrictions?
Foreign buyers face different restrictions depending on property type, with primary residences being the most accessible option.
All-year dwellings in cities like Copenhagen, Aarhus, or Odense are available to foreigners who meet residency or permission requirements. These include apartments, townhouses, and detached homes intended for permanent occupation. Co-op housing (andelsbolig) has additional restrictions and often requires board approval.
Summer houses and vacation properties face the strictest controls. Both EU and non-EU citizens need 5 years of Danish residency or rarely-granted special permission. Agricultural land exceeding 30 hectares requires additional agricultural qualifications and is generally unavailable to non-residents.
| Property Type | EU Citizens | Non-EU Citizens | Key Restrictions |
|---|---|---|---|
| Primary Residence | Free if residing | Permission required | Must be used as main home |
| Vacation Homes | 5 years residency | 5 years residency | Rarely granted permission |
| Agricultural Land | Special requirements | Generally prohibited | Need farming qualifications |
| Commercial Property | Business presence needed | Business presence needed | Must operate Danish business |
| Co-op Housing | Board approval | Board approval | Often require Danish guarantor |
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What's the step-by-step process and required documents for foreign buyers?
The Danish property purchase process involves multiple stages, each requiring specific documentation and approvals.
First, determine your eligibility by checking if you meet the 5-year residency requirement. If not, prepare your permission application including your passport, residence permit (if applicable), employment contracts, bank statements showing financial capacity, and a detailed explanation of your ties to Denmark. Submit this to the Department of Civil Affairs with the DKK 1,000 fee.
Once approved or if already eligible, engage a real estate agent (ejendomsmægler) to find suitable properties. When you identify a property, secure mortgage pre-approval from a Danish bank - you'll need proof of income, Danish CPR number if resident, and typically 10-40% down payment as a foreigner.
Sign the purchase agreement including protection clauses for bank and lawyer approval. Your lawyer conducts due diligence on the property title, checking for encumbrances, easements, and legal compliance. The digital deed (skøde) is prepared and electronically signed, then registered with the Land Registry.
Complete the transaction by transferring funds, paying all taxes and fees, and obtaining mandatory property insurance. The entire process typically takes 2-3 months from offer acceptance.
Is hiring a lawyer mandatory, and what are typical legal costs?
While not legally required, hiring a lawyer is strongly recommended and considered standard practice in Danish property transactions.
Danish property lawyers typically charge fixed fees rather than percentages. For a standard residential purchase, expect to pay around DKK 12,500 (approximately €1,675) including VAT. This covers contract review, due diligence, deed preparation, and registration. Complex transactions or properties with legal issues may cost DKK 15,000-25,000.
Lawyers handle critical tasks including verifying clean property title, checking for hidden encumbrances, ensuring building compliance with regulations, negotiating contract terms, and managing the digital registration process. They also explain your obligations regarding property maintenance and neighborhood covenants.
Real estate agents' fees (typically 2-4% of purchase price) are paid by the seller, not the buyer. Notary fees for deed registration are separate, costing 0.6% of purchase price plus DKK 1,750.
Foreign buyers particularly benefit from legal representation to navigate permission requirements and ensure compliance with ownership restrictions.
How much do properties cost across Danish cities and regions?
Property prices in Denmark vary dramatically between Copenhagen and rural areas, with a clear urban premium as of June 2025.
Copenhagen remains Denmark's most expensive market with average house prices at DKK 7.6 million and apartments at DKK 5.8 million. Prime neighborhoods like Østerbro and Frederiksberg command 20-30% premiums. Vesterbro and Nørrebro have seen 10% annual appreciation due to gentrification and young professional influx.
Aarhus, Denmark's second city, offers better value with average house prices around DKK 4 million. The university presence and tech sector growth maintain strong demand. Odense and Aalborg present similar pricing at approximately DKK 2.5 million for houses, benefiting from urban development projects and improved transport links.
Rural properties and smaller towns offer significant savings, with houses averaging DKK 1.5 million. Coastal areas in North Jutland or rural Zealand provide lifestyle benefits at fraction of city prices, though foreign ownership restrictions on vacation homes apply.
Price per square meter ranges from DKK 45,000-60,000 in central Copenhagen to DKK 8,000-15,000 in rural areas. This represents 15-20% increase since 2022 in major cities.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Denmark versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Which Danish locations offer best lifestyle, returns, and appreciation potential?
Copenhagen dominates for capital appreciation and rental returns, while smaller cities offer lifestyle advantages and better entry prices.
Copenhagen's rental yields reach 5-7% in central districts, with strong demand from international workers and students. Neighborhoods undergoing regeneration like Sydhavn and Amager Øst offer appreciation potential of 8-12% annually. Tourist-friendly areas near Nyhavn and Vesterbro suit short-term rental strategies, though regulations tighten.
Aarhus combines university town stability with tech sector growth, delivering 4-5% rental yields and steady 5-7% annual appreciation. The harbor redevelopment and light rail expansion boost property values. Low vacancy rates under 2% ensure consistent rental income.
For lifestyle, consider Aalborg's waterfront renaissance or Odense's cultural offerings at half Copenhagen prices. Coastal towns like Helsingør offer Copenhagen proximity with seaside living. The Triangle Region (Kolding, Fredericia, Vejle) provides family-friendly environments with growing employment opportunities.
It's covered extensively in our Denmark property pack.
Can foreigners get Danish mortgages - rates, terms, and approval tips?
Yes, foreigners can obtain Danish mortgages, though requirements are stricter than for Danish citizens.
As of June 2025, mortgage rates range from 4.45% to 5.53% depending on loan type and term. Fixed-rate mortgages offer stability over 20-30 years, while variable rates provide initial savings. Interest-only options exist for the first 10 years, popular among investors maximizing cash flow.
Foreign buyers typically need 10-40% down payment compared to 5% for Danes. EU citizens with Danish employment often qualify for 80% financing, while non-EU buyers may be limited to 60-70% loan-to-value. Banks require valid residence permits matching or exceeding loan terms.
| Mortgage Feature | Danish Citizens | EU Citizens | Non-EU Citizens |
|---|---|---|---|
| Down Payment | 5% minimum | 10-20% | 20-40% |
| Maximum LTV | 95% | 80-90% | 60-70% |
| Income Requirements | 3x loan amount | 3.5x loan amount | 4x loan amount |
| Employment History | 3 months | 6 months | 12 months |
| Interest Rates | Best rates | +0.25-0.5% | +0.5-1% |
Improve approval chances by maintaining Danish bank accounts for 6+ months, providing extensive income documentation, offering larger down payments, and considering Danish guarantors. Major banks like Danske Bank, Nordea, and Nykredit have international departments assisting foreign buyers.
What taxes and fees apply during purchase, ownership, and resale?
Danish property transactions involve multiple taxes and fees totaling 2.4-2.9% of purchase price for buyers.
Purchase costs include registration fee of 0.6% plus DKK 1,750 for the deed, and 1.5% plus DKK 1,750 for mortgage registration. Legal fees typically add DKK 12,500, while building inspections cost DKK 5,000-10,000. Title insurance runs DKK 5,000-15,000 depending on property value.
Annual ownership costs feature property value tax of 0.51% on values up to DKK 9.2 million, increasing to 1.4% above that threshold. Municipal land tax varies by location, typically 1.6-3.4% of land value. Copenhagen charges among the highest rates nationally.
Additional ongoing expenses include building insurance (DKK 5,000-15,000 annually), utilities, and potential homeowners association fees for apartments (DKK 500-2,000 monthly). Maintenance reserves of 1-2% of property value annually are recommended.
Upon resale, primary residences enjoy capital gains tax exemption if you've lived there. Investment properties face taxation on gains as capital income at rates up to 42%. Estate agents charge sellers 2-4% commission plus marketing costs.
What mistakes do foreigners commonly make when buying Danish property?
The most critical error is attempting purchases without proper residency status or permission, potentially resulting in forced property sale.
Many foreigners underestimate the 5-year residency requirement's strictness, assuming tourist visas or short-term permits suffice. Others purchase through Danish nominees or complex corporate structures, violating ownership laws and risking legal prosecution. Some buyers ignore restrictions on summer houses, not realizing even EU citizens need special permission.
Financial mistakes include budgeting only for purchase price without considering 2.4-2.9% transaction costs, annual taxes of 2-4%, and maintenance expenses. Foreigners often struggle with Danish mortgage requirements, not realizing they need larger deposits and extensive documentation.
Due diligence failures occur when buyers skip professional inspections or lawyer involvement, missing critical issues like foundation problems, illegal modifications, or title defects. Language barriers compound these risks when contracts contain unfavorable terms.
To avoid these pitfalls, always verify your eligibility before property searching, budget 35-40% above purchase price for down payment and costs, engage Danish lawyers and certified inspectors, and never attempt to circumvent foreign ownership restrictions through informal arrangements.
What are the tax obligations for foreign property owners in Denmark?
Foreign property owners face comprehensive Danish tax obligations plus potential requirements in their home countries.
In Denmark, you must pay annual property value tax (ejendomsværdiskat) of 0.51% up to DKK 9.2 million and 1.4% above, plus municipal land tax. Rental income is fully taxable at progressive rates up to 52.06%, though you can deduct mortgage interest, maintenance costs, and depreciation. Register with SKAT (Danish Tax Agency) within 8 weeks of purchase.
Capital gains on primary residences are tax-exempt if you've lived there, but investment property gains face taxation as capital income. The calculation considers purchase price, improvements, and selling costs. Non-residents pay 27% tax on rental income and capital gains unless tax treaties provide relief.
Most countries tax worldwide income, creating potential double taxation. Denmark has treaties with 70+ countries preventing this. Typically, you'll pay tax in Denmark and claim credits in your home country. Some nations require reporting foreign property ownership regardless of income generation.
Professional tax advice is essential to optimize your position, especially regarding deductions, treaty benefits, and compliance with both Danish and home country requirements.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Denmark's property market offers opportunities for foreign buyers willing to navigate its complex regulations and residency requirements. Success requires understanding the 5-year rule, securing proper permissions, and budgeting for substantial transaction costs beyond the purchase price.
Copenhagen and Aarhus present the strongest investment potential with 5-7% rental yields and steady appreciation, while smaller cities offer lifestyle benefits at lower entry points. The key is ensuring full legal compliance, engaging professional assistance, and maintaining realistic expectations about costs and restrictions throughout the ownership journey.
Sources
- Ministry of Foreign Affairs of Denmark - Foreign Citizens Acquisition of Property
- Global Property Guide - Denmark Buying Guide
- Life in Denmark - Purchasing Real Property
- Danish Tax Agency (SKAT) - Property in Denmark
- Danske Bank - Guide to Buying a Home
- Baker Tilly Legal - Real Estate in Denmark
- PwC Tax Summaries - Denmark Individual Taxes
- Lunar - How to Buy Real Property in Denmark
- Artnode - Mortgage in Denmark Guide
- Housenix - Best Cities for Real Estate Investment in Denmark