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. Seven years ago, an apartment of 100 m² cost an average of €312,000, and today it is sold for €530,000.

€5,300

Average price per 1 m²

1.5%

Average price growth per quarter

0.7—1.2%

Associated costs, of the property value

How the residential property price index is growing in Denmark

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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

Schedule a meeting

Individual selection of investment properties

  • Discuss your tasks and goals

  • Choose between properties from reliable developers

  • Get fully prepared and verified documents for a purchase

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Denmark residency 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.

Taxes and associated costs

40+ guides with European countries

Find out how much it costs to buy and rent real estate in each country, what the market dynamics are and what taxes you need to pay when buying and selling.

Igor Buglo

Material prepared by Igor Buglo, Head of the Maltese office, MBA

Updated:
07 October, 2024

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.

  • What are the benefits of investment in real estate in Denmark?

    Denmark has a strong, stable economy with low unemployment rates and robust growth. This economic stability makes real estate investments less risky compared to other markets.The Danish krone is relatively stable, reducing the risk of currency fluctuations for international investors.

    Denmark has a high demand for rental properties, especially in major cities like Copenhagen and Aarhus. This demand ensures a steady stream of rental income for property investors.

    The rental market is well-regulated, providing protections for both landlords and tenants, which can lead to more predictable and stable rental returns.

  • 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.