Buy Property In Denmark
Many people hunting for property to buy in Denmark use an estate agent. It can be very useful to work with an agent with knowledge of the local property market and who can offer advice on the purchasing process.
buy property in denmark
You can also start your Danish property search yourself, using an online portal or real estate listings site. You can also use a broker specialising in international property sales. Here are some places to try:
Special rules apply if you wish to purchase a detached house, construction plot, owner-occupied apartment, holiday home, cooperative housing unit (andelsbolig) or other real property in Denmark. These rules apply regardless of how you intend to use the property (a permanent or non-permanent dwelling).
The general rule is that, unless you have domicile in Denmark or you have had residence in Denmark for at least five years, you must have permission from the Department of Civil Affairs to acquire real property in Denmark.
If you have submitted an application to the Department of Civil Affairs and it becomes apparent that you do not need permission, the Department of Civil Affairs will refer you to the Danish Court of Land Registration (Tinglysningsretten). The Court of Land Registration will then reach a final decision as to whether or not you can acquire real property without the permission of the Department of Civil Affairs.
Land registration is the official registration, verification and publication of rights concerning real property. When you register your ownership of the property, the Court of Land Registration will reach a final decision as to whether you need permission from the Department of Civil Affair to acquire real property. If you believe that you fulfil the conditions for acquiring real property without the permission of the Department of Civil Affairs, you must submit a declaration directly to the Court of Land Registration when registering your ownership.
In these cases, when registering your ownership of the property, under criminal responsibility, you must submit a declaration to the Danish Court of Land Registration (Tinglysningsretten). Amongst other things, the declaration must state that the property is not a holiday home or holiday plot, or used as such.
If you have declared that you intend to use the property as a permanent dwelling, you will normally not be entitled to vacate the property unless you sell or transfer it. If you do vacate the property, the Department of Civil Affairs may order you to sell or transfer the property within six months. If you fail to comply with this order, you may be fined.
You will not normally be permitted to vacate the property without selling or transferring it. If you do vacate the property, the Department of Civil Affairs may order you to sell or transfer the property within six months. If you fail to comply with this order, you may be fined.
If you are being posted and you have not lived in Denmark for at least five years, you can apply to the Department of Civil Affairs to retain the property during your posting. Your application must include the following:
You cannot be granted general permission to purchase a non-permanent dwelling. However, you can obtain advance permission from the Department of Civil Affairs if you have sufficiently strong ties in order to be granted permission to purchase a holiday home. Once you have found a property you wish to buy, you must notify the Department of Civil Affairs, who will then prepare the final permission. The advance permission is valid for three years.
Buying a house in Denmark has significant appeal. Not having to constantly find places to rent will help you feel more settled, and you might also find that your property will increase in value over the coming years. However, you need to consider several factors before purchasing one.
The cost of a property for sale in Denmark varies wildly depending on location. The most expensive regions are Copenhagen and its surroundings, with real estate being especially pricey in more affluent areas like Frederiksberg and Gentofte.
EU or EEA nationalsEU nationals and EEA nationals may under certain circumstances purchase property in Denmark without obtaining the permission of the Danish Ministry of Justice.
EU or EEA companiesCompanies etc. domiciled in an EU or an EEA Member State, which have been established in accordance with the legislation in an EU or an EEA Member State, and have set up or will set up subsidiaries or agencies, or will provide services in Denmark may under certain circumstances purchase real property in Denmark without obtaining the permission of the Danish Ministry of Justice.
Contact the Department of Civil AffairsIn all cases where an EU national or EEA national or a registered company wishes to purchase property, the Department of Civil Affairs under the Danish Ministry of Justice should be contacted in advance.
Several of the most visited property sites are the websites of the largest real estate companies themselves, such as EDC and Nybolig. Others, such as Boligsiden or Boligportal, are dedicated property portals (meaning they do not belong to a real estate agency):
It is also worth noting that buying residential property in Denmark is beneficial for obtaining a stable rental income. This is due to the fact that rental profitability remains quite high, rental rates are growing even faster than the value of real estate in Denmark.
In May 2022, average property prices in Denmark rose by 5.0% year on year (compared to the same month of the previous year). The highest annual growth rates remain in the capital region - Copenhagen real estate has risen in price by 7.4% over the year. Annual growth rates above the national average were recorded only in the Zeeland region - by 5.9%. It is followed by Southern Denmark (+4.2%) and Central Jutland (+2.2%).
There are clear restrictions on the rights of foreigners to purchase real estate, including a ban on buying property in the resort area, the impossibility of acquiring housing without a lawyer (whose services the buyer will have to pay), and foreigners are not issued loans in Danish banks (you can only buy housing for cash). The relevant legislation is in force in all Danish cities.
Though the seller will always provide you with a home condition report that describes the state of the property, including deficiencies and damages, there is a chance that the surveyor who made it missed some crucial issues.
By hiring your own surveyor, you get an independent evaluation of your future home. Also, the surveyor can help you to better understand the issues listed in the property condition report and how they will financially affect you in the long run. These findings can then be used as negotiation advantages when dealing with the real estate agent.
A subsidiary company established and registered in Denmark by a foreign parent company can freely buy property under the same conditions that apply to (other) Danish companies. However, Danish foreign companies are not allowed to own holiday houses without the approval of the Danish Nature Agency. Thus, it is not possible for foreigners to buy e.g. holiday houses through a Danish company.
Furthermore, the majority of the residential property in Denmark is subject to a residence requirement. This means that if a residential property is not occupied by the owner, the owner is obliged to enter into a lease agreement with a tenant. If the property is left empty by the owner for more than 6 months, the municipality in question may force the owner to enter into a lease agreement with a tenant appointed by the municipality. The purpose of this rule is to maintain a certain population standard in each municipality and prevent housing shortages.
Farms are subject to detailed regulation concerning residence. They are mixed properties, since the farmhouse shall be used for residence and the rest of the property is a commercial property. As a general rule, the owner or tenant is obliged to live at the farm as well as to use it for farming.
The landlord pays all taxes and fees pertaining to the property. Unless otherwise agreed, such taxes and fees are included in the rent to the effect that either party may claim adjustment of rent if the taxes and fees are changed.
Unless otherwise agreed in the lease agreement, the landlord is responsible for ensuring the legality of the agreed use of the property and the construction and furnishing of the premises, e.g. asbestos in the walls. However, it is often agreed that the tenant, apart from being responsible for the legality of his actual use and furnishing of the premises, is also responsible for any order issued from public authorities after the date of commencement.
Under the Acquisition of Real Property Act, it is a requirement for acquiring real property in Denmark that the buyer has a permanent residence in Denmark or has lived in Denmark for a consecutive period of five years. If the buyer does not meet this requirement, the buyer may apply to the Danish Department of Civil Affairs for permission to acquire real property.
However, due to the EU principle of 'free movement' special rules apply to EU citizens. Therefore, Denmark has adopted an exemption from the Acquisition of Real Property Act, which means that citizens of EU and EEA countries may purchase real property in Denmark without the permission of the Department of Civil Affairs.
Therefore, British citizens will continue to have the same opportunity during this transitional period to acquire real property in Denmark under certain conditions without the permission of the Department of Civil Affairs.
If you as a British citizen consider buying real property in Denmark, you may want to keep in mind that it is likely to become much harder to purchase real property in Denmark when the transitional period expires. It is not known whether a final withdrawal agreement will be adopted, which prevents Britons from being treated in the future as third-country citizens with regard to the acquisition of real property. 041b061a72