Guide to Property Taxes in Denmark

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 2024

Taxable Income (2024) 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 25.067%
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
Roundtrip Cost 3.43% - 5.93%  
Source: Global Property Guide, PWC, KPMG

Property Holding Tax

National Property Tax

A national property tax is levied on the value of properties in Denmark. The taxable value is the lowest of:

  • The assessed value as of 01 January of the current tax year.
  • 105% of the assessed value as of 01 January 2001.
  • The assessed value as of 01 January 2002.

The tax rate is 0.92% of the taxable value up to DKK3,040,000 (€407,552) and 3% on the value in excess of the limit.

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