Denmark – Property Letting

How does the property letting process work in Denmark?

The relationship between landlords and tenants in Denmark is primarily regulated by the Danish Rent Act (Lejeloven), which sets out the respective rights and duties of both parties. It covers everything from how lease agreements must be structured to how rent may be increased, how deposits are handled, how maintenance is divided, and how tenancies may be brought to an end. The Act applies to the vast majority of rental properties across the country. Before making a property available to rent, landlords would do well to become thoroughly acquainted with this legislation, since many of its tenant-protective provisions remain in force regardless of any contrary wording in a contract.

Landlords generally advertise available properties through Danish property websites, social media communities, and platforms used by international relocation services. There are no formal restrictions on how properties may be marketed. Landlords may screen prospective tenants by requesting proof of earnings, employment references, or the results of a credit check — however, Danish tenancy law includes anti-discrimination provisions that prohibit refusing a tenancy on the basis of ethnicity, religion, sexual orientation, gender, or other protected grounds.

If either party requests it, any tenancy agreement and associated arrangements should be set out in writing. While a verbal agreement can in principle be legally valid, it is significantly harder to rely upon if a disagreement later arises. Danish law strongly favours written contracts as the practical norm, and both landlords and tenants are entitled to insist on having one.

The written tenancy agreement should be drawn up using the 9th edition of the standard housing tenancy agreement A (Typeformular A, 9. Udgave). Adhering to this prescribed form matters considerably, because departing from it without legal justification can leave the landlord exposed if challenged clauses are subsequently found to be unenforceable.

Particular attention should be paid to §11 Special Terms (Særlige vilkår), which sets out any exceptions or supplementary conditions that vary from the standard rules established under Danish tenancy law. Both parties should review this clause with care before signing. Tenancy agreements may be either open-ended or for a fixed period. Fixed-term arrangements are attractive to landlords who anticipate needing to return to the property at some stage, though specific legal conditions must be satisfied for a fixed term to be legally valid.

When a new tenancy commences, the landlord and tenant should jointly inspect the property. At the point of key handover, both parties should walk through the premises and document its condition in a move-in report, recording any existing defects or areas of wear. This record plays a central role in resolving any deposit disputes when the tenancy eventually comes to an end.

What types of rental arrangements are available in Denmark — long-term, short-term, and holiday lets?

Denmark draws clear distinctions between long-term residential letting, short-term accommodation, and holiday home rental. Each category attracts its own set of regulatory requirements and tax obligations.

Long-term residential letting is the predominant form of rental arrangement and falls fully within the scope of the Danish Rent Act. These tenancies are typically either open-ended or for a defined period, and tenants benefit from extensive statutory protections. This is the arrangement addressed most comprehensively throughout this article.

Short-term letting — known in Danish as korttidsudlejning — covers temporary furnished accommodation, usually for periods of fewer than 30 days, and is most commonly arranged through platforms such as Airbnb. Homeowners may rent out their primary residence for a maximum of 70 nights per year. Where a hosting platform works in partnership with the Danish government, the relevant local authority may raise this ceiling to 100 nights annually. For hosts using platforms that have no such government arrangement in place, a lower cap of 30 nights per year applies.

Whether a permit, licence, or registration is required before renting out a property on a short-term basis depends largely on local authority rules and the nature of the property in question. Denmark has introduced requirements for homeowners wishing to let through platforms such as Airbnb to register their activity. It is important to check with your local municipality to establish what specific obligations or restrictions apply in your area. Regardless of letting type, compliance with building, fire safety, and health standards is required.

Holiday home letting operates under a separate tax regime. The commercial rental of a holiday property requires authorisation from the Danish Nature Agency (Naturstyrelsen). In general, the Nature Agency does not grant authorisation for purely commercial use, meaning holiday homes are expected to serve primarily as the owner’s personal retreat, with letting as an incidental activity. Landlords should consult the Danish Tax Authority (SKAT) and their local municipality for current permissions.

What rental income can landlords expect in Denmark, and how are rates set?

The rent a landlord may charge is influenced by a range of factors, including the number of dwellings in the building, the year in which the property was constructed, and its location within Denmark, which can vary significantly from one area to another. The Rent Act contains no fewer than four distinct rent control systems operating simultaneously. This complexity sets Denmark’s rental market apart from countries such as Germany or the Netherlands, where a single national rent framework applies.

One of the first questions to address is whether the property was built before or after 31 December 1991. Properties completed after that date generally allow landlords to set rent freely, provided the level is not unreasonably high relative to the market. Properties completed before that date fall under the Housing Regulation provisions of the Rent Act.

Cost-based pricing, known as omkostningsbestemt husleje, is the standard method for determining rent in larger residential buildings with more than 50 tenancies. The rent is arrived at by adding together all the operational costs of running the building, applying a return on investment of roughly 7 percent, and then allocating the figure on a per-square-metre basis. This method typically produces the lowest rent levels found anywhere in the Danish market.

A less prescriptive but more subjective approach, referred to as lejedes værdi or “leased value”, permits landlords to charge what they consider a fair market rent. This method applies to properties that had six or fewer tenancies on New Year’s Day 1995, as well as to municipalities that have chosen to exempt themselves from the Housing Regulation rules.

Annual rent adjustments are commonly linked to the net price index published by Statistics Denmark. In 2022, as interest rates climbed sharply, the Danish government introduced a temporary measure capping rent increases at 4 percent, whereas under normal circumstances rent may rise in line with inflation and wage growth. Landlords must give tenants at least three months’ notice before implementing any rent increase, and any such increase must conform to applicable rent control requirements. Always consult the Huslejenævn (Rent Tribunal) website and the relevant local authority for current figures and to identify the applicable category, as the rules are intricate and depend heavily on the specific circumstances.

Do landlords need to provide a furnished or unfurnished property in Denmark?

Danish law imposes no general obligation on landlords to let their properties furnished. Both furnished and unfurnished arrangements are widespread, and the decision typically reflects the target tenant group, the property’s location, and the intended duration of the letting.

In practice, unfurnished tenancies are the standard for long-term residential lets, particularly where standard apartments or family homes are concerned. Certain properties are offered fully furnished as “turn-key” arrangements, where the tenant needs only to bring their personal possessions, as the lease covers all furniture and fittings. This approach is more prevalent in Copenhagen’s international relocation and corporate letting sector.

Where a property is rented furnished, it is the tenant’s responsibility to look after the furniture throughout the tenancy and to return it in the same condition as when it was received, allowing for reasonable wear and tear. To protect against end-of-tenancy disputes over the state of furnishings or missing items, landlords are strongly encouraged to draw up a comprehensive inventory at the start of the tenancy, which the tenant should sign to confirm its accuracy.

Furnished lets aimed at short-term visitors or corporate tenants can command a market premium, particularly in cities such as Copenhagen and Aarhus. That said, landlords should be aware that the rent control category applicable to their property — and consequently the permissible rent level — is determined by the property type and construction date, not by whether it is let furnished or unfurnished. Providing furniture has no bearing on the tax treatment of income from a long-term residential letting.

Do you need a licence or registration to let a property in Denmark?

For ordinary long-term residential letting in Denmark, no formal landlord licence is required in the manner that countries such as Scotland or Wales have established through mandatory registration schemes. To let out a home, you must be its legal owner. If you are yourself a tenant or live in a cooperative housing arrangement, different subletting rules apply and these are distinct from standard letting regulations.

The picture becomes more involved for short-term letting. Denmark has introduced requirements for homeowners wishing to offer accommodation through platforms such as Airbnb to register their rental activity. The precise requirements and any local restrictions differ from one municipality to another, so landlords planning to let in tourism-intensive areas such as Copenhagen, Aarhus, or coastal communities should clarify what applies with their local council before proceeding.

Non-resident landlords should be aware that for VAT purposes, registration may be required if income from short-term accommodation exceeds DKK 50,000 within any 12-month period. Where an individual is not resident in Denmark but owns accommodation located there, VAT registration may be necessary even without reaching a threshold, as some scenarios allow no registration exemption for non-residents. Current VAT thresholds should always be confirmed directly with SKAT (the Danish Tax Authority).

How do you obtain a landlord licence or register as a landlord in Denmark?

Since no national landlord licence exists for long-term letting in Denmark, the registration process is primarily a matter of fulfilling your legal and tax obligations before the tenancy gets under way. The steps below set out what landlords should address:

1. Confirm ownership and eligibility. Establish that you hold legal title to the property. If the property carries a mortgage or is held within a housing association, confirm with the relevant body that letting is permitted under your existing terms.
2. Prepare the correct tenancy agreement. The tenancy agreement should be prepared using the 9th edition of the standard housing tenancy agreement A (Typeformular A, 9. Udgave). This standard form is available from the Danish Ministry of Housing or specialist legal stationers.
3. Register with SKAT for tax purposes. All landlords — whether resident in Denmark or not — are required to declare rental income to the Danish Tax Authority (SKAT). Non-residents should obtain a Danish tax identification number if they do not already hold one.
4. Register short-term activity locally (if applicable). If letting via Airbnb or a comparable platform on a short-term basis, register with your municipality and, where required, generate a unique sharing code through SKAT. For tax years 2021 onwards, hosts in Denmark must create a unique code with SKAT to enable the secure sharing of rental data.
5. Check VAT registration requirements. If your short-term rental income might exceed the VAT threshold, consult SKAT or a local accountant about the need for VAT registration before you begin letting.
6. Carry out a move-in inspection. Where a landlord owns more than one rented property, a joint inspection with the tenant at the point of move-in is a legal requirement. Even for those with a single rental property, completing a formal move-in report is strongly recommended to safeguard both parties.
7. Notify utilities and relevant bodies. Update utility account details and, where applicable, inform the homeowners’ association (ejerforening) or housing cooperative that the property is now being let.

There are no government fees associated with long-term letting registration as of 2025. Costs for registering on short-term letting platforms vary between platforms. Registration with SKAT is typically processed within a few business days when completed online. As fees and procedures are subject to change, always verify the current position directly with SKAT and your local municipality.

What are the rules around deposits in Denmark?

Denmark operates a well-developed body of law governing security deposits, with the key provisions set out in the Danish Rent Act (Lejeloven). A solid understanding of these rules is important for anyone involved in letting property.

A landlord may require up to three months’ rent (excluding utilities) as prepaid rent and a further three months’ rent (excluding utilities) as a security deposit, on top of the rent due for the first month of the tenancy. In total, this means the maximum a tenant might need to provide upfront equates to roughly nine months’ rent. This figure is considerably larger than the single-month deposit that is typical in many other countries, and tenants new to Denmark are often taken aback by the level of initial outlay involved.

Unlike the UK’s Tenancy Deposit Protection framework, under which deposits must be lodged with an approved independent scheme, Denmark does not run a mandatory government deposit register. Nevertheless, the majority of landlords in Denmark are required to hold security deposits in separate accounts, kept apart from their personal or business funds, so that the money remains available to be returned when the tenancy concludes.

Upon termination of the lease, the landlord is required to refund the deposit, less any legitimate deductions for damage. Disagreements frequently arise over whether proposed deductions are justified. Tenants should not be charged for reasonable wear and tear that has accumulated naturally over the course of the tenancy, but where damage has resulted from negligent upkeep on the tenant’s part, the cost of repair may legitimately be deducted.

Danish law requires that deposits be returned within a reasonable period following the tenant’s departure, with four to six weeks generally being the accepted interpretation, even though the legislation does not specify an exact timeframe. Where a tenant disputes the deductions made, the matter may be referred to the local Rent Tribunal (Huslejenævn). As of 2025, complaints can be submitted through the national Huslejenævn website.

Who is responsible for maintenance and repairs in Denmark?

The Danish Rent Act addresses maintenance obligations and applies to most rental properties in Denmark. The division of responsibility between landlord and tenant is partly dictated by the Act itself and partly determined by what the parties agree under §11 of the tenancy contract.

As a general principle, the landlord bears responsibility for structural repairs, the building’s fabric, communal facilities, and ensuring the dwelling meets the minimum standards required for habitation. This encompasses elements such as the roof, external walls, heating infrastructure, and the main plumbing system. The duty to keep the property in a liveable condition is enshrined in statute and cannot be excluded by contract.

Where the tenancy agreement assigns responsibility for internal maintenance to the tenant, the tenant must keep the property in the condition required, which may include repainting when vacating. The only maintenance duty placed directly on tenants by the Rent Act itself is the upkeep and replacement of locks and keys when necessary. Any obligations beyond this must be set out explicitly in the agreement.

Should a tenant believe that rent or a proposed rent increase contravenes the applicable rules, or that the landlord is failing to meet statutory repair obligations, they may lodge a complaint with the Rent Tribunal. This mechanism makes Denmark’s system more actively protective of tenants than arrangements in some countries where tenants must pursue landlords through civil litigation. Landlords are therefore well advised to respond promptly to any repair requests to avoid tribunal involvement.

How are letting agents used in Denmark, and what do they charge?

Letting agents and property management firms are a common feature of the Danish rental market, particularly for landlords who own several properties, are based outside Denmark, or simply prefer to take a less hands-on approach. Agents typically offer services encompassing tenant sourcing, contract preparation, move-in inspections, rent collection, maintenance coordination, and end-of-tenancy administration.

In contrast to the UK, where a ban on fees charged to tenants was introduced in 2019, or various European markets where caps on agency charges are strictly enforced, Denmark does not operate a national ceiling on the letting agent fees that landlords may be charged, as of 2025. Fee arrangements are generally a commercial matter agreed between the landlord and the agency. The structure of fees varies between agencies and service tiers, but typical models include a one-off finder’s fee — often equivalent to one to two months’ rent — for placing a tenant, alongside a recurring management fee expressed as a percentage of the monthly rent for ongoing full management.

On managed leases handled by agencies such as Housing Denmark, all communication between tenant and landlord is routed through the management department, with both parties directed to address their requests there. This arrangement can be particularly advantageous for landlords based abroad who are not available to handle day-to-day matters directly.

In general, tenants in Denmark are not expected to pay agency fees in order to secure a rental property, although this is not universally codified in law in the same manner as in some other markets. Landlords should check prevailing market rates and any applicable guidance with the Danish Consumer Council or a local legal adviser, as both fees and practices vary widely and may change over time.

What taxes apply to rental income in Denmark?

The taxation of rental income in Denmark varies depending on whether the landlord is a Danish resident, a non-resident, and whether the property is being let on a long-term or short-term basis. The rules are complex, and landlords should always take advice from a Danish tax specialist and consult the SKAT website for up-to-date guidance.

If you are a Danish resident domiciled in Denmark, you are liable for tax on rental income regardless of where in the world the property is situated. If you are not resident in Denmark — or are resident but domiciled elsewhere — and you derive income from property located in Denmark, that income is subject to Danish taxation. Non-resident landlords should register with SKAT and submit a Danish tax return to account for rental income.

Long-term residential letting: Rental income is treated as personal income and taxed at Denmark’s progressive income tax rates, which can reach approximately 56% at the highest level (as of 2025). Landlords may deduct qualifying expenses such as mortgage interest, property management fees, maintenance costs, and depreciation of fixtures and fittings. The accounting method (regnskabsmæssige metode) should be used, and thorough records of all deductible expenditure must be maintained.

Short-term letting (schematic model): Under the so-called schematic model, the first DKK 33,500 (as of 2025) of rental revenue is tax-free provided the income is reported on the landlord’s behalf by a bureau or platform that has an arrangement with the Danish authorities, such as Airbnb. For income exceeding this threshold, 60 percent of the amount is subject to tax at the individual’s standard personal income tax rate, a proportion that reflects an allowance for depreciation, upkeep, and running costs without requiring the landlord to produce detailed documentation.

Holiday home letting: In 2025, the first DKK 13,100 per holiday home is exempt from tax when the property is let privately by its owner. Where the letting is arranged through an agency, the exempt threshold rises to DKK 47,900 (2025). Tax is then applied to 60% of any rental income that exceeds the relevant threshold.

If you own the property, property value tax (ejendomsværdiskat) is not payable on the portion of the property that is rented out during the letting period. Owners may also deduct a proportionate share of costs such as gas, electricity, water, telephone, heating, maintenance of furniture and equipment, and other expenses connected with the letting. A proportionate element of the property tax may similarly be deducted where at least 10% of the dwelling is rented out.

Rental income tax returns must be filed with SKAT. The filing deadline is 1 May in the year following the income year — meaning that for the 2024 tax year, the return is due by 1 May 2025. Rates and thresholds are revised annually, so current figures should always be verified at skat.dk.

What are the rules around ending a tenancy or evicting a tenant in Denmark?

Danish law provides tenants with substantial protections, which means that bringing a tenancy to an end — or pursuing an eviction — is a structured process that can take considerable time. Although there are defined legal grounds on which landlords may terminate or dissolve a rental agreement, eviction is never immediate and must adhere to strict procedural requirements.

The general principle under Danish law is that a tenancy is not terminable by the landlord. There are, however, a limited number of exceptions — for instance, if the landlord intends to resume personal occupation of the property. In such cases, the landlord must serve the tenant with a full 12 months’ written notice of termination. Demolition of the property is another ground on which a landlord may bring a tenancy to an end.

Additional grounds for termination include cases where the tenant has persistently disregarded accepted standards of conduct within the building. Where the rental involves a single room within the landlord’s own home, a shorter notice period of at least one month applies.

The popularity of fixed-term tenancy agreements among landlords is largely explained by this framework. The termination provisions are mandatory in nature, meaning that no contractual wording can reduce the 12-month notice requirement — a clause purporting to do so would simply have no legal effect.

While the main rule under the Rent Act contemplates a three-month notice period for termination, this only applies to landlords in a narrow range of circumstances — most notably where the tenant has breached contractual obligations such as failing to observe the building’s house rules.

Compared with jurisdictions where landlords can recover possession relatively swiftly — such as Ireland in certain scenarios or a number of US states — Denmark’s system places considerably greater weight on protecting the tenant’s right to remain. Landlords who require the certainty of recovering their property on a specific future date should structure the arrangement as a valid fixed-term tenancy from the outset and obtain legal advice to ensure its enforceability under Danish law.

What should expat landlords know about managing property remotely in Denmark?

Foreign nationals who own residential property in Denmark may decide to rent it out — whether through a platform such as Airbnb or through a private arrangement — for example when they are spending an extended period overseas. Managing Danish property from abroad is entirely achievable, but it calls for careful attention to legal representation, tax compliance, and the practical realities of remote management.

Property management: Engaging a reputable Danish letting agent or property management company is strongly recommended for landlords who are not based in Denmark. A qualified agent can oversee day-to-day maintenance requests, collect rent, manage the deposit, and ensure ongoing compliance with the Rent Act on the landlord’s behalf. Where a local representative needs to act legally in the landlord’s name, a formal power of attorney (fuldmagt) can be drawn up to authorise them to do so.

Tax obligations: Non-resident landlords who receive income from Danish property are liable to pay tax on that income in Denmark. They must register with SKAT, secure a Danish tax number, and submit annual Danish tax returns. Unlike in some countries, there is no automatic withholding mechanism for residential rental income paid to non-resident landlords; it is the landlord’s personal responsibility to declare and settle the correct amount of tax.

If you are an individual resident outside Denmark who owns accommodation located in Denmark and you engage in short-term letting, you may be required to register for VAT without the benefit of a registration threshold, as certain scenarios afford no minimum threshold to non-residents. Specialist Danish tax advice should always be sought before commencing any letting activity if you are based abroad.

Repatriation of income: Denmark places no restrictions on transferring rental income to a foreign bank account, but landlords must be fully compliant with Danish tax law and, where relevant, with the provisions of any applicable double taxation treaty between Denmark and their country of residence. A cross-border tax adviser should be consulted for advice tailored to individual circumstances.

Non-resident compliance: Non-resident landlords are subject to identical obligations under the Danish Rent Act as those who live in Denmark, but they face the additional challenge of meeting those obligations from a distance. Retaining a local lawyer or agent with expertise in both Danish tenancy law and the practicalities of managing property remotely is the most effective single step a non-resident landlord can take to remain compliant and safeguard their investment.

Frequently asked questions

Can a non-resident own and let property in Denmark?

Yes. Non-residents face no legal prohibition on owning and letting residential property in Denmark, provided the property was acquired through lawful means. Non-resident landlords are subject to the same obligations under the Danish Rent Act as resident landlords, and must register with SKAT to report rental income. Always confirm the current position with the Danish Tax Authority.

How much deposit can a landlord legally charge in Denmark?

Landlords may collect up to 3 months’ rent (excluding utilities) as prepaid rent and a further 3 months’ rent (excluding utilities) as a security deposit, in addition to the rent payable for the first month — meaning the total amount due upfront may amount to the equivalent of around 7 to 9 months’ rent. These figures apply as of 2025; check the Danish Rent Act or SKAT for any updates.

Is there rent control in Denmark?

Denmark operates four separate rent control systems simultaneously under the Rent Act, and private rented apartments and rooms are generally subject to some form of rent regulation. The applicable system depends on where the property is located and when it was built. Properties completed after 31 December 1991 can generally be let at a freely agreed market rent, subject to a reasonableness requirement. Legal advice should be sought to determine which system governs your property.

Do I need a local agent to let my property in Denmark?

No legal requirement to appoint a letting agent exists for long-term residential letting in Denmark. However, for non-resident landlords, working with a local property manager is strongly advisable in order to maintain legal compliance, manage tenant relationships, and keep the property in good order. For short-term letting, using a platform that reports income directly to SKAT also unlocks access to higher tax-free thresholds (as of 2025).

How long does it take to evict a tenant in Denmark?

Denmark’s legal framework offers tenants considerable protection, which makes eviction a formally structured and potentially drawn-out process. Landlords must work through the prescribed legal channels, and eviction is not permitted without specific grounds as defined by the Rent Act. A contested eviction that proceeds through the courts can take many months to resolve in practice.

What are the rules for Airbnb and short-term letting in Denmark?

Owners of primary residences may rent out their home for no more than 70 nights per year, though local authorities may raise this ceiling to 100 nights where the host uses a platform that has partnered with the Danish government. A cap of 30 nights per year applies to hosts using platforms with no such government arrangement. Always verify the current local rules with your municipality before letting on a short-term basis.

What taxes do I pay on rental income in Denmark as a non-resident?

Non-residents who earn income from property situated in Denmark are liable for Danish income tax on that income. Under the schematic model for short-term letting, the first DKK 33,500 (primary home, 2025) or DKK 47,900 (holiday home, 2025) may be tax-exempt when income is reported by a qualifying platform, with 60% of income above that threshold taxed at personal income tax rates. Income from long-term lets is taxed as personal income, with certain expenses deductible. Consult SKAT and a specialist tax adviser for guidance specific to your situation.

What happens to the tenancy if I sell my property in Denmark?

Under Danish law, a tenant’s general rights as established by tenancy legislation are enforceable against the landlord’s creditors and against any party who acquires the property in good faith. In practical terms, this means a new owner takes on the existing tenancy on its current terms when they purchase the property. A change of ownership does not give the new owner grounds to evict the tenant. Sellers should ensure that all tenancy details are disclosed to prospective buyers, and legal advice should be obtained to facilitate a proper transfer of landlord obligations.