Learn › Buying a home in Denmark

In short: In Denmark you typically fund a home with a realkreditlån (mortgage-bank loan, up to 80% of value) plus a bank loan and at least 5% cash. On purchase you pay tinglysningsafgift: 0.6% of the price plus a fixed fee on the deed, and 1.25% plus a fixed fee on a new mortgage (as of 2026). Each year you then pay ejendomsværdiskat and grundskyld, both reformed in 2024 to use market-based valuations. The ejendomsværdiskat high-rate threshold for 2026 is 9,007,000 DKK.

Buying a home in Denmark

Kontoo editorial team · Updated 06/24/2026 · 6 min read

Denmark has one of the most distinctive home-financing systems in the world. Most buyers combine a mortgage-bank loan (realkreditlån) with a smaller top-up bank loan, pay a registration tax when the deal is recorded, and then face two annual property taxes. This lesson explains the moving parts so you can read your own numbers. It is educational, not financial advice, and all figures are as of 2026 — check the official source when in doubt.

Save your down payment. By law you normally need at least 5% of the purchase price in cash; the realkreditlån covers up to 80% of the value, and a bank loan bridges the gap.
Arrange financing: a realkreditlån from a mortgage bank (fixed- or variable-rate, typically up to 30 years) plus, if needed, a supplementary banklån for the slice above 80%.
Budget the one-off registration tax (tinglysningsafgift) on both the deed and the mortgage — these are paid once, at purchase.
Plan for the two recurring property taxes — ejendomsværdiskat and grundskyld — billed through your annual tax assessment.

What matters

Buying property in Denmark involves three distinct money flows: how you borrow, what you pay once at purchase, and what you pay every year afterwards. Financing. The backbone is the realkreditlån, a loan from a mortgage bank funded by covered bonds. It can cover up to 80% of the home’s value over terms commonly up to 30 years, with either a fixed rate or a variable rate. Because at least 5% must be your own cash, the slice between 80% and your down payment is usually filled by a supplementary banklån, which is shorter and more expensive. Many buyers therefore hold two loans at once. One-off registration tax (tinglysningsafgift). When ownership is recorded in the land register you pay a deed tax: as of 2026 this is 0.6% of the purchase price plus a fixed fee of 1,850 DKK. Recording a new mortgage costs a separate tinglysningsafgift: 1.25% of the mortgaged amount plus a fixed fee of 1,825 DKK (the variable rate on mortgages fell from 1.45% to 1.25% on 1 January 2026). These are paid once. Annual property taxes. Two taxes recur every year. Ejendomsværdiskat is charged on the home’s value: as of 2026 it is 5.1 promille of the tax base up to a threshold of 9,007,000 DKK and 14 promille above it, where the tax base is a cautious 80% of the official valuation. Grundskyld (land tax) is levied on the land value by your municipality; municipal rates vary, but the 2024 reform lowered them to a national average of roughly 7-8 promille. Both reach you through your tax assessment.

ExampleWorked example (rounded, as of 2026). A home costs 3,500,000 DKK. You put down 5% in cash (175,000 DKK). You take a realkreditlån of 2,800,000 DKK (80% of value) and a banklån for the rest. One-off registration tax: the deed costs 0.6% of 3,500,000 = 21,000 DKK plus the fixed 1,850 DKK = about 22,850 DKK. Registering the 2,800,000 DKK mortgage costs 1.25% = 35,000 DKK plus the fixed 1,825 DKK = about 36,825 DKK. So registration taxes alone total roughly 59,700 DKK on top of your down payment. Annual ejendomsværdiskat on this home is roughly 5.1 promille of 80% of the valuation: if the valuation is about 3,500,000 DKK, the base is 2,800,000 DKK and the tax is about 14,280 DKK per year, before grundskyld on the land value.

Estimate your monthly payment and up-front registration costs with the Kontoo /mortgage-calculator, and verify current rates on the official portals skat.dk and vurderingsportalen.dk.

In depth

Fixed versus variable realkreditlån

A fixed-rate realkreditlån locks your interest for the loan’s life and lets you benefit from bond mechanics if rates rise, while a variable-rate loan resets periodically and is cheaper when rates are low. The choice trades certainty against potential savings; both are still capped at 80% of value, so the supplementary bank loan question applies either way.

Why ejendomsværdiskat and grundskyld are separate

Ejendomsværdiskat taxes the value of the whole property (house plus land), while grundskyld taxes only the land value and is set by the municipality. Because they use different bases and different rate-setters, two similar homes in different municipalities can carry quite different annual tax bills even with identical purchase prices.

Checklist

Most buyers combine a realkreditlån (up to 80% of value) with a smaller bank loan and at least 5% own cash.
Tinglysningsafgift is paid once: 0.6% plus a fixed fee on the deed, and 1.25% plus a fixed fee on a new mortgage (2026).
Ejendomsværdiskat and grundskyld are annual taxes, billed through your tax assessment.
The 2024 reform moved the recurring taxes onto market-based valuations and a cautious 80% tax base.

Common myths

Myth: The mortgage bank or bank will lend me the whole purchase price.

Reality: No. A realkreditlån covers at most 80% of value, and you must contribute at least 5% as your own down payment; the rest comes from a more expensive bank loan. Plan your cash accordingly.

Myth: The 2024 reform raised everyone’s property tax.

Reality: The reform switched to market-based valuations but also cut the rates (promille) and uses a cautious 80% tax base to cushion the change. Whether your bill rose or fell depends on your municipality and your home and land values.

Sources

Frequently asked questions

What is a realkreditlån and how does it differ from a bank loan?

A realkreditlån is a loan from a specialised mortgage bank (realkreditinstitut) funded by selling covered bonds. It can finance up to 80% of a home’s value, usually runs up to 30 years, and tends to be cheaper than ordinary bank credit. The remaining gap above 80% (and below your 5% cash) is normally covered by a regular banklån, which is shorter and carries a higher rate.

How much cash do I need before I can buy?

As a rule you need at least 5% of the purchase price as your own down payment, plus money for the one-off costs such as tinglysningsafgift and adviser fees. On a 3,500,000 DKK home that 5% is 175,000 DKK, before counting registration tax and other purchase costs.

What changed with the 2024 property-tax reform?

From 2024 the recurring property taxes switched from old frozen 2011/2012 valuations to new market-based public valuations. Tax rates (promille) were lowered to soften the effect, and the tax base uses a cautious value of 80% of the official valuation. As of 2026 the tax still rests on the 2024 valuation, with a new valuation expected to take effect from 2027.

All lessons · Glossary · Editorial · Kontoo does the math and explains – this is general education, not tax, legal or financial advice.

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