Tax in Denmark
See what Denmark's tax rules do to your property portfolio.
What Freeholt models for property, income and retirement in Denmark, and what it does not.
Free to start. No card. Rules reviewed 12 July 2026.
Modelled here
- Tax on rental income
- Capital gains on a sale
- Duty on purchase
- Dividends, interest and share sales
DKK · Rates as at 12 July 2026 · Estimates, not advice
Rental surplus is taxed as CAPITAL income on a representative ~37/42% scale for residents and non residents alike. The municipal rate varies, and the personal income treatment of professional lets is not modelled. Investment property gains are capital income too; the parcelhusreglen primary residence exemption is not modelled.
How rental income is taxed in Denmark
For a resident owner: Progressive rates from 37% to 42%, stacked on other income in this country. The top rate of 42% applies above DKK 50,500. For an owner living abroad and renting this out: Progressive rates from 37% to 42%, stacked on other income in this country. The top rate of 42% applies above DKK 50,500.
Interest and losses
Mortgage interest is deductible against the rent. A rental loss is ring fenced: it carries forward against future rental income rather than reducing other income now.
Capital gains on a sale
Gains are added to income and taxed at the marginal income rate.
Annual property tax while holding
An annual property or land tax is not modelled here, which is not the same as there being none. Treat holding costs on this page as excluding it.
What it costs to buy
About 0.6% of the price on purchase. Registration duty (tinglysningsafgift) 0.6% of price plus a fixed fee (~DKK 1,850, not modelled), with no foreign buyer surcharge; ejendomsværdiskat and grundskyld vary and are not modelled. Non residents and non EU buyers generally need Ministry of Justice permission unless they have lived in Denmark 5+ years or hold qualifying EU ties, and holiday homes are especially restricted.
Can a foreign buyer purchase here?
A foreign buyer needs approval before purchasing. Non residents and non EU buyers generally need Ministry of Justice permission unless they have lived in Denmark 5+ years or hold qualifying EU ties; holiday homes are especially restricted.
Residents of Denmark with property abroad
A resident of Denmark is taxed on rent and sale gains from property abroad under the same rules as property in Denmark, with a credit for the tax paid where the property is. The credit stops at Denmark's own tax on that income, so the total is broadly the higher of the two countries' charges. Special regimes for people who have just moved to a country are not included in Freeholt's figures.
Dividends, interest and share sales
How Denmark taxes investment income. For dividends: Own rate ladder: 27% / 42%. For share sale gains: Own rate ladder: 27% / 42%.
How Freeholt models Denmark
Every rate above is priced from Freeholt's own table for Denmark and runs through the whole projection: rental income, a modelled sale and the annual holding costs all use the same figures. They cannot be edited yet, so a position that differs from the defaults has to be read with that in mind. The estimate assumes an individual owner rather than a company or trust, and where a rule is not modelled it is listed below rather than quietly priced at zero.
What running this property costs
In Denmark this covers grundskyld (land tax; a rented out home is exempt from ejendomsværdiskat but not from grundskyld), ejerforening fees for apartments, building insurance, maintenance and management.
How borrowing works here
Danish mortgages combine a realkreditlån (bond funded, up to 80% LTV, terms of 10/20/30 years) with a bank loan for any gap, and interest only afdragsfrihed is common for up to 10 years on up to 60% of value before principal repayments start.
What actually happened here
This country's own record, one year at a time. Nothing on this page is borrowed from another country. Move across a chart to read a year.
Recent rule changes in Denmark
- The coalition agreement of 2 Jun 2026 proposes capping deductible interest at DKK 150,000 a year (DKK 300,000 for spouses), and commissions on a limited tax on realised home gains paired with a lower property value tax, and on cutting registration duty for first time buyers.(proposed only, never priced into your figures)
What Freeholt models here
- ModelledTax on rental income
- Resident and non resident rates, with interest and losses treated under the local rule.
- ModelledCapital gains on a sale
- Priced in the year of the sale under the rules of that year.
- ModelledDuty on purchase
- One off, on the way in, at the scale in force.
- Not yetAnnual property or land tax
- Not priced here; the page says where the charge falls instead.
- Not yetIncome tax beyond the rent
- Not modelled for this country yet.
- ModelledDividends, interest and share sales
- Investment income and gains, with the local allowances.
- Not yetRetirement savings
- Not modelled for this country yet.
- Not yetInheritance and what happens on death
- Not modelled for this country yet.
What Freeholt does not model here
- Any annual property or land tax, which may still exist here
- Inheritance and estate tax
- Treaty relief between this country and the owner's country of residence
What the figures above leave out (4)
- Danish interest is ordinary income on a ladder this engine does not yet hold, so interest is not priced here at all.
- Denmark tests its DKK 79,400 threshold against the taxpayer's other SHARE income only. Include a salary here and the receipt is pushed into the 42% band where Danish law charges 27%.
- Denmark doubles that DKK 79,400 threshold for a married couple, and the doubling is not modelled, so a couple with combined share income between the two figures is overstated.
- Denmark's aktiesparekonto is charged a flat 17% on the year's movement in value whether or not anything is sold. That is not modelled: an account that gained is overstated here, and one that fell is charged on a gain it may not have.
Coverage deepens country by country. Every figure is an estimate, not advice.
Compare with another country
Each page is built from the same table the app runs on, so the figures line up side by side.
Compare Denmark with another country — rent, gains, annual tax and duty, side by side.
Questions people ask
- Does Freeholt model Denmark property tax?
- Yes. Rental income tax, capital gains on a sale and duty on purchase are priced from Freeholt's own rate table for Denmark. Annual property or land tax is not priced here, and the page says so rather than showing a zero. The rates are not editable yet, so one that differs in a particular case cannot be overridden. Every figure is an estimate, not advice.
- How is rental income from Denmark taxed if I live somewhere else?
- Progressive rates from 37% to 42%, stacked on other income in this country. The top rate of 42% applies above DKK 50,500. Tax may also be due in the country of residence, with credit for what was paid here. Estimates only, not advice.
- What are the Denmark figures as at?
- The rate table for Denmark was last reviewed on 12 July 2026. Freeholt date stamps every country rather than implying all of them were checked on the same day. Estimates only, not advice.
Model a property in Denmark alongside everything else you own: see the year your portfolio starts paying you back.