Guide to Property Taxes in Denmark
Tax Rate on Rental Income |
|||
| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 42.11% | 42.11% | 43.22% |
Nonresidents are taxed on their income from Danish sources. Married couples are taxed separately.
Income Tax
An individual who is not fully liable for taxes may have limited tax liability in Denmark. This limited tax liability pertains only to income from Danish sources, as specified in Section 2 of the Danish Tax at Source Act. As a general rule, an individual with limited tax liability in Denmark will be taxed up to 52.07%.
State Income Tax Rates 2025
| Taxable Income (2025) | Income Basis | Tax Rate |
| State Taxes | ||
| Bottom Tax | Personal Income | 12.01% |
| Top Tax | Personal Income | 15.00% |
| Local Taxes | ||
| Municipal tax (average) | Taxable Income | 25.068% |
| Labor market tax | Personal Income | 8.00 |
| Share Tax (DKK, €) | ||
| DKK 0 to 61,000 (€8,178) | Share Income | 27.00% |
| Over DKK 61,000 (€8,178) | Share Income | 42.00% |
| Source: Global Property Guide, PWC | ||
National Taxes
Bottom Tax
The bottom tax base includes personal income and positive net capital income. The bottom tax rate is 12.01% for 2024.
Top Tax
The top tax base for a single person consists of personal income and positive net capital income. The top tax rate is 15% on the portion of the top tax base that exceeds DKK 588,900 in 2024, after an 8% deduction for labor market tax.
Local Taxes
Municipal Tax
Local income tax, or municipal tax, is calculated on taxable income at a flat rate that varies by municipality. The national average rate is 25.067% for 2024.
Share Tax
Share income up to DKK 61,000 (or DKK 122,000 for a married couple) is taxed at 27% in 2024. Any share income exceeding this amount is taxed at 42%.
Capital Gains Tax
Net capital income is taxed at a rate of up to 42% in 2024. Negative net capital income and other allowances may be deducted, but not in their entirety. The capital gains are then included in the aggregate income and taxed at progressive rates.
Corporate Taxation
Income Tax
Corporate income and capital gains earned by companies are subject to a flat corporate tax rate of 22%. Income-generating expenses are deductible when calculating taxable income.
Property Buying Costs and Taxes in Denmark
Transaction Costs
| Description | Cost Range | Who Pays |
| Property Transfer Tax | 0.70% | Buyer |
| Agent Fee Buyer | - | Buyer |
| Agent Fee Seller | 1.00% - 3.00% | Seller |
| Legal Fees | 1.00% | Buyer |
| Notary Fees | 0.73% - 1.23% | Buyer |
| Costs Paid By Buyer | 2.43% - 2.93% | |
| Costs Paid By Seller | 1.00% - 3.00% | |
| Roundtrip Cost | 3.43% - 5.93% | |
| Source: Global Property Guide, PWC, KPMG | ||
Property Holding Tax
National Property Tax
This tax is charged only on homes that are used by their owners; rental properties are not subject to it. The rate is progressive:
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0.51% on the assessed value up to DKK 9.2 million.
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1.4% on the portion of the value above DKK 9.2 million.
