Mazanti-Andersen
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Denmark has rather strict rules on foreign ownership of real estate to protect its housing market. EU/EEA citizens and companies enjoy more lenient terms, especially if they plan to live in or conduct business in Denmark. However, non-EU/EEA nationals and companies almost always need prior approval.
Generally, non-Danish residents or those without strong ties to Denmark (without previous residence in Denmark of at least 5 years) must obtain permission from the Danish Ministry of Justice before acquiring real estate.
EU/EEA citizens can buy and occupy property without permission if the property will be used as a permanent residence. If not intending to live there permanently, permission is required.
Non-EU/EEA Citizens must obtain permission from the Ministry of Justice (Civilstyrelsen) to purchase any real estate. Permission is generally granted only if the person has strong personal or business ties to Denmark, such as long-term residence or family or the property is necessary for conducting business.
Danish Companies can freely own and occupy real estate, subject to normal Danish regulation, including zoning and planning laws. EU/EEA Companies can acquire property if it will be used in connection with business activities in Denmark, and no permission is needed if they establish a branch or are doing business in Denmark.
Non-EU/EEA Companies must apply for special permission to acquire real estate. This permission is typically granted only if they have a business operation in Denmark. This does not prevent indirect foreign ownership in property owning companies.
As a special rule, and exemption for Denmark under the EU Treaty, foreigners (even EU/EEA citizens) are generally not allowed to buy Danish summer houses (holiday homes), unless they have permanent residency in Denmark and they receive special permission from the Ministry of Justice. This rule is meant to protect coastal and rural areas from foreign over-speculation, and a close connection to Denmark is required to obtain permission.
Overview
Holiday Homes
| Buyer Type |
Residential Property |
Commercial Property |
Holiday Homes |
| Danish citizens/residents |
Yes |
Yes |
Yes |
| EU/EEA residents |
Yes (residence) |
Yes (with activity) |
No (permission needed) |
| Non-EU/EEA individuals |
Permission needed |
Permission needed |
Generally no |
| Danish companies |
Yes |
Yes |
Generally no (Permission needed) |
| EU/EEA companies |
Yes (business use) |
Yes (business use) |
No |
| Non-EU/EEA companies |
Permission needed |
Permission needed |
No |
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
Generally, Danish banks can lend to foreign companies for property purchases.
However, de facto there are some restrictions on lending for the purchase of real estate by foreign companies in Denmark, especially if the buyer is a non-EU/EEA company.
Before a foreign (non-Danish) company can receive a mortgage loan for real estate, it must obtain permission to acquire the property from the Ministry of Justice, if required.
Danish banks will exercise enhanced due diligence when lending to foreign entities, especially non-EU/EEA companies, due to Anti-money laundering (AML) regulations/KYC requirements as well as risk assessment of the borrower's business operations in Denmark.
Often foreign companies may face lower LTV ratios and stricter collateral demands as well as higher interest rates due to perceived risk.
Loans are usually denominated in Danish kroner (DKK)
As a general rule, Danish law requires that the buyer of property for residence makes a down payment of at least 5%.
There are no specific prohibitions against using foreign banks or lenders to finance real estate in Denmark. However, registration of foreign security interests (e.g., mortgages) must comply with Danish land registration law (Tinglysningsloven). In practice Danish legal counsel is required in such matters.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
A short summary of the main fees and costs (including taxes) associated with buying real estate in Denmark in 2025 is as follows:
| Item |
Approximate Cost |
| Property transfer tax to the state |
DKK 1,850 + 0.6% of the purchase price |
| Mortgage registration tax to the state |
DKK 1,825 + 1.45% of purchase price (In 2026, the percentage will drop to 1,25%) |
| Valuation fee |
Negotiated, usually based on time consumption and complexity/value |
| Real estate agent fee |
Negotiated, usually based on the value and paid by the seller. |
Legal fees and valuation fees (often required for the mortgage approval) are agreed from transaction to transaction but are typically based on time consumption and complexity/value.
Notary or public certification is not commonly used in Danish real estate transactions as this is usually handled via involved lawyers.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner
NA
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
In Denmark there are no direct tax breaks or specific incentives solely for foreigners buying real estate.
However, there are some general aspects of the Danish tax system and real estate market that might be beneficial depending on the situation, such as tax deductions and other indirect benefits, including deductable mortgage interest and the possibility of capital gains tax exemptions for primary residences.
How is the ownership of Real Estate evidenced in your jurisdiction?
In Denmark ownership of real estate is officially recorded in the Land Registration System (Tinglysningssystemet), which is managed by the Danish Land Registration Court. The Land Registration System is fully electronic, and ownership records are public and can be accessed online for verification.
When you buy property, the deed of sale is signed by both parties via the Land Registration System and is then submitted for registration. The deed of sale, a title deed (Skøde), is generated automatically to document the transfer of ownership.
Mortgages and legal encumbrances on the property are also recorded in the registry.
For property owned through a company, ownership is evidenced by the Shareholder’s Register in the company in addition to direct land registry records.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
In Denmark, the identity of real estate owners is generally not kept confidential. Ownership is recorded in the Land Registry and can be accessed by the public. While corporate owners may offer some degree of privacy through company structures, personal ownership is openly disclosed.
Danes may register for anonymity in the Danish personal registry which is connected to the Land Registry, and that way avoid publicity of property ownership as a physical person. The registration is valid for one year at a time.