The country has a
coastline of 7,314 km
and a 68-km-long frontier with Germany. It
is a distinctly low lying country, the highest point being only 173
meters above sea level, but the landscape is undulating and varied. The
Kingdom of Denmark also includes the
Faroe Islands and
Denmark in the EU including links to Danish government sites and
Denmark is not fully open:
membership of the EU, it is not easy to acquire property here.
Non-residents may not purchase real property here unless the person:
- Has previously resided in
Denmark for at least five years
- Is an EU national working in
- If a non-EU national, has a
valid residence or business permit.
Restrictions: Non-EU/EEA nationals must first
obtain permission from the Ministry of Justice to purchase property in
Denmark, and must confirm that the property will be used for their
personal residence throughout the year. EU/EEA citizens do not need to
obtain permission to buy property, but must confirm in a statement
attached to the deed that it will be used for year-round residence.
are special restrictions on foreign ownership in some areas, especially
when buying summer holiday homes. This is particularly prevalent in
coastal areas. These are popularly known as the ‘anti-German rules’;
because they are designed to prevent coastal areas from being overrun by
German second home owners.
However, it is possible to purchase properties, which are not located in
popular areas along the coast, as long as you satisfy the above
Legal: It is
advisable to use
to conduct the legal work involved. The house
purchase process can take several months.
It is advisable to
obtain a buyer's certificate from the lender which confirms the finance
arrangement, so that you can make a quick offer when you find a suitable
When an offer is
accepted and the purchase agreement has been signed by the buyer and
seller, the buyer should place a deposit of 5% of the purchase price
with the estate agent. There is a cool-off period of 6 days after
signing the purchase agreement during which the buyer can annul the
agreement, and may be required to pay the seller 1% of the purchase
The balance of the
purchase price will be payable on the agreed closing date for the sale
of the property. Various documents are involved in the purchase of a
property in Denmark, which will be transferred to the buyer via their
solicitor. These include
certificate, which sets out the rights and obligations relating to
the property, a cadastral map of the property.
Operating permit which confirms that
the property meets building regulations.
The BBR-owner information which is
issued by the local council and provides details of the property
such as its size, history, dimensions, location and technical
Property tax note, issued annually and
setting out the expected level of the following year's taxes and
related property expenses.
Energy rating and energy plan, showing
the current heating, electricity and water consumption and giving
guidance on how to reduce these.
normally have a property
report compiled by a building expert and will make this available to all
prospective buyers. The report gives details of the physical condition
of the property and any defects. If no property report is provided, the
seller can be held responsible for a period of 20 years for any serious
defects which emerge. If the buyer requests a transfer deed, the cost of
which is shared between them and the seller of the property, a property
report must be produced. A transfer deed provides insurance for the
buyer against any faults or defects that may arise and insurance for the
seller against any claims from the buyer.
Mortgage/Loans: It is possible to borrow
finance to purchase property in Denmark from banks or mortgage credit
institutions, at up to 80% of the property value. You will be required
to take out buildings and fire insurance on the property if the purchase
is financed with a mortgage.
Fee’s and Costs: The following is a list of
costs you are likely to incur,
Solicitor's fee which is
negotiable and is not expected to exceed 0.5% of the property value,
even if you include the 25% VAT.
Registration fee (DKK1,400
(€188) plus 0.6% of property value) is paid at the Land Registry.
Estate agent fee which is
normally negotiable. It can range from 0.5% to
2%, depending upon the value of the property and the amount of work that
is involved. This is normally paid by the seller.
Buy to Let:
There are five different forms of rent control in
Denmark; the system is
very complex and includes the following;
go to the Rents Tribunal.
dwellings constructed after 1991 are exempt from rent control.
agreements can be for a limited or unlimited period.
Landlord-tenant relations are guided by the Contracts Act, the Private
Housing Act and the Temporary Private Housing Act.
Control Act is relevant to the fixing of rent. It is up to each
individual council to determine whether or not the Act is to be applied
in its district. Districts covering 85% of the total stock of rented
dwellings, i.e., almost all urban districts, have adopted the Rent
The legal process is slow
and it can take up to 8 months to evict a tenant.
are advised to get legal advice and ensure you fully understand the
Rental Laws before proceeding.