Denmark 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 Greenland.

Denmark in the EU including links to Danish government sites and Tourist Information.

Denmark is not fully open: Despite Denmark’s 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 Denmark
  • 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.

There 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 requirements.

Legal: It is advisable to use solicitor 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 property.

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 price.

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

  1.   Land certificate, which sets out the rights and obligations relating to the property, a cadastral map of the property.

  2. Operating permit which confirms that the property meets building regulations.

  3. 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 conditions.

  4. Property tax note, issued annually and setting out the expected level of the following year's taxes and related property expenses.

  5. Energy rating and energy plan, showing the current heating, electricity and water consumption and giving guidance on how to reduce these. 
     

Surveys: Sellers 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;

1.      Disputes can go to the Rents Tribunal.

2.      Rents on dwellings constructed after 1991 are exempt from rent control.

3.       Tenancy agreements can be for a limited or unlimited period.

4.       Landlord-tenant relations are guided by the Contracts Act, the Private Housing Act and the Temporary Private Housing Act.

5.      The Rent 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 Control Act.

6.      The legal process is slow and it can take up to 8 months to evict a tenant.

You are advised to get legal advice and ensure you fully understand the Rental Laws before proceeding.

Map of Denmark
LINKS
Investors
Investors Buy Leads
Investors Sell Leads
Buying in Europe
Andorra
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Estonia
Finland
France
Germany
Gibraltar
Greece
Hungary
Iceland
Ireland
Italy
Latvia
Liechtenstein
Lithuania
Luxembourg
Malta
Netherlands
Norway
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
Switzerland
United Kingdom

Buying Worldwide
Australia
Canada
Cape Verde
Morocco
New Zealand
St Kitts and Nevis
Turkey
USA

Vendors, a Quick sale of your property
UK and Ireland
Europe

 

 

Disclaimer: This guide is for information only and should not be relied upon as definitive. Details have been obtained from various sources and although we have done everything possible to ensure that it is correct, we cannot accept responsibility for it or guarantee its accuracy. This is because processes and laws change frequently, and may vary dependant upon personal circumstances. You are welcome to use the information provided, but should always obtain confirmation of specific details and get independent specialist and legal advice in the country that the information refers to.

21-10-2009