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PROPERTY

Can foreigners buy a summer house in Denmark?

Summer houses in Denmark are a hugely popular destination for those who want to vacation without going abroad. Can foreign nationals buy them in the same way as permanent homes?

Can foreigners buy a summer house in Denmark?
Certain rules apply for foreigners purchasing a summer house in Denmark. Photo;: Henning Bagger/Ritzau Scanpix

Many people in Denmark spend their holidays living in summer houses, properties in which residence is not usually permitted year-round.

Rules preventing permanent use are in place to ensure summer house areas remain recreational in nature; to limit new construction in valuable and uninhabited coastal areas; and to protect natural landscapes from wear and tear.

READ ALSO: Summer houses in Denmark: What are the rules and when can you live in them?

While renting is a popular choice, owning a summer house is also relatively common and may be a financially viable option, depending on your budget and plans for vacationing and use of the property. 

Foreign nationals who have lived in Denmark for less than five years are required to apply for permission to buy real estate with the Ministry of Justice’s Department of Civil Affairs (Civilstyrelsen). This also applies to Danes who have lived abroad.

Foreign nationals looking to buy property can face additional challenges, including minimum residency requirements and banks asking for a higher down payment on mortgages.

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However, the Ministry of Justice’s Department of Civil Affairs (Civilstyrelsen) states that, for both permanent homes and non-permanent or seasonal dwellings like summer houses, foreign nationals can be given permission to purchase properties, even if they have lived in Denmark for less than five years.

The application for to acquire a seasonal dwelling (such as a summer house) can be found here. The rules can be explored in full detail here.

I have lived in Denmark for less than five years. Will my application be accepted?

Citizens of EU countries are normally exempted from residence requirements because of EU free movement laws. As such, citizenship and not residence or previous stay in Denmark is decisive and EU citizens can generally acquire real estate in Denmark.

However, if you want to buy a holiday home this does not apply and the five-year residence requirement takes precedence – regardless of whether you have EU nationality.

If you don’t meet the five-year rule, you can still be granted permission to buy a summer house if you are consider to have a “special connection” to Denmark.

This can take the form of close family in Denmark or professional, cultural or financial connections, or previous stays in the country. These are taken into account by the Justice Ministry when it reviews an application.

For companies, different rules apply to those for private individuals, and companies have more leeway to purchase property in Denmark.

However, companies are only allowed to buy holiday homes in Denmark for commercial purposes or to use them for year-round residence. These means rules for private individuals cannot be circumvented by purchasing the properties under a business.

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PROPERTY

What has happened to Denmark’s housing market so far in 2024?

A drop in the price of apartments in Copenhagen and stable house price trends were among the features of the Danish property market during the early months of 2024.

What has happened to Denmark’s housing market so far in 2024?

House prices for both detached (villaer) and semi-detached or terraced (rækkehus) housing fell by 0.2 percent in terms of the price per square metre in the first quarter of this year, new data from specialist media Boligsiden show.

Effectively, this means house prices were unchanged in the first part of this year compared to the end of 2023, the property media said in a press release.

Stable house prices makes a substantial – if lower than forecast – drop in the cost of apartments in Copenhagen the key takeaway from property market data from the first quarter of this year.

Privately-owned apartments in the Greater Copenhagen were 2.3 percent cheaper in the first three months of this year compared to the preceding quarter.

“In the past, we have seen a price increase from the fourth quarter of the year gone by to the first quarter of the new year. That is explained by the housing market often taking a break during the winter months and activity then increasing when spring arrives,” Boligsiden’s economist and head of communications Birgit Daetz said in the press release.

“But that trend does not apply in the same way this year,” she noted.

READ ALSO: Denmark has highest number of houses put on market since 2008

It is in particular the introduction of a new property tax on January 1st 2024 that has disrupted trends usually seen on the market, she said.

“The new property tax rules took effect at the new year and that change has given some skews on the housing market, especially in areas of the country where property taxes have now increased,” she explained.

A high activity at the end of 2023 in affected areas – notably Copenhagen’s apartment market – was followed by a quiet spell after the new rules kicked in for this reason, she said.

Because of the nature of the new rules, apartments in cities are most likely to see higher property taxes for new owner from 2024 onwards, whereas other types and locations are less likely to be affected.

READ ALSO: EXPLAINED: Denmark’s new property tax rules from 2024

“Having said that, the property tax changes have also given either lower or unchanged taxes in large parts of the country and in several of those places the house prices have gone up from the fourth quarter last year to the first quarter this year,” she said.

Breaking the trends up by region, Greater Copenhagen and Central Jutland – including second city Aarhus – saw house prices fall by 0.6 percent and 1.6 percent respectively.

In North Jutland, Zealand and South Denmark, there were increases of 4.8 percent, 2 percent and 0.6 percent respectively.

Although the price of apartments in Copenhagen fell by 1.7 percent compared to a 1.4 percent national average, the figure is less severe than some had feared, according to an analyst who spoke to news wire Ritzau.

That is despite the decline meaning an 80-square-metre apartment in the capital is now theoretically worth 72,000 kroner less than it was at the end of last year.

READ ALSO: What prospective homebuyers in Denmark can expect in 2024

“There hasn’t been a [price] bloodbath, and that is connected to high employment, inflation falling away and the fact that many Danes are seeing the highest wage increases for decades,” said Mire Lie Nielsen, economist with credit union Nykredit.

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