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Real estate investment in Denmark

Denmark limits real estate sales to foreigners: one must have a residence permit and live in the country for at least five years to buy a property. A legal entity can purchase real estate: one must open a company in Denmark for this.

Statistics confirm the liquidity of investments: residential real estate prices grow by an average of 1.5% every quarter. Five years ago, an apartment of 100 m² cost an average of €312,000, and today it is sold for €401,000.

€4,008 Average price per 1 m²
of housing in Denmark
1,5% Average price per 1 m²
increase per quarter
0,7—1,2% Buyers’ related expenses,
of the transaction amount

Cost of a 3-bedroom apartment in Denmark

€1.5 million

Apartment in the historic centre of Copenhagen

€800,000

Apartment in Copenhagen,
5 km from the centre

€500,000

Apartment in Odense

What do investors buy?

The most expensive real estate is in the capital region of Copenhagen, with suburbs.

Apartments

  • apartments in historic reconstructed buildings
  • apartments

Houses

  • villas
  • townhouses
  • village houses

Denmark residence permit or citizenship by real estate investment

Obtaining a Denmark residence permit or citizenship is not connected with purchasing real estate or investing. On the contrary, a foreigner must get a residence permit and live in Denmark for at least five years to buy a property.

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Taxes and associated costs

Purchase
Ownership
Sale

Property buyers pay for notarial and legal support of the transaction and a registration fee.

Associated costs range between 0.73% and 1.23% of the purchase agreement value. When buying a new apartment for €500,000, the investor will spend €531,000, including additional costs.

0.73—1.23% Of the contract value are related costs for the purchase of housing in Denmark
Purchase expenses
Notarial and legal support of the transaction

The fee is the subject of the contract

1.25—6.25%
VAT included
Registration fee
€188 + 0.6%
Of transaction amount

Taxes

Property owners pay an annual tax of 1% to 3% of the cadastral value. The tax rate depends on the property value, which is reassessed annually.

Real estate rental income is included in the income tax base. The income tax rate is progressive from 0% to 35%.

€1,980 Approximate annual costs for
maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection
€110—290 

per month

Internet, TV and telephone
€20—40 

per month

If the owner sells a property that was their primary residence, they don’t pay capital gains tax. In other cases, the income tax base includes the difference between the sale and purchase prices. The income tax rate is progressive from 0% to 35%.

The seller pays an agency fee of 0.5% to 2% when selling through an agency.

0—35% Capital gains tax on the sale of
real estate
Expenses on the sale
Capital gains tax

Paid on the difference between the purchase and sale prices

0—35%
Agency fee

If sold through an agency

0.5—2%

Frequently asked questions

Can foreigners buy real estate in Denmark?

Yes, but with limitations. Foreigners can either register a legal entity in Denmark and buy real estate through it, or get a residence permit in Denmark and live in the country for at least five years.

How much does a house cost in Denmark?

The average housing cost in Denmark is €4,008 per 1 m². The most expensive real estate in Denmark is in Copenhagen, the capital city, and its suburbs.

Does Denmark have property tax?

Yes. Property owners in Denmark pay an annual tax of 1% to 3% of the cadastral value.

Will House Prices Drop in Denmark?

While real estate prices in Denmark are growing slightly slower than the European Union average, there’s no reason to believe they will dramatically drop any time soon. The average real estate price increase in Denmark is 1,5% per quarter.