Foreigners are as a general rule restricted by law from buying residential property in Denmark unless you make Denmark the "center of your life". In practical terms this means getting a permit from the Ministry of Justice in order by finalize the purchase. This permit is not just a formality and you need to document, that you are taking up permanent residence in Denmark. EU citizens working in Denmark are exempt from these rules, but you should consult a lawyer in order to clarify your specific options.
How do I find a property?
The main property-portal in Denmark is Boligsiden.dk. Here you'll find all properties offered for sale by Danish real estate agents. There are currently no English-language sites, but the presentation of the properties is generally of high quality in terms of pictures and hard facs, so you should be able to identify properties that match your needs. Most agents speak passable English so contact the agent for further information.
Do I need a lawyer?
In short: Yes! The Danish propertymarket is highly regulated and the purchasing agreement is an extensive document. Sellers are typically represented by an estate agent and you need a competent advisor - especially considering the required permit from the Ministry of Justice mentioned above.
How do I get a permit?
Your lawyer will submit the application to the Ministry of Justice. The permit is free of charge and is normally issued within 2 weeks. But make sure you talk to your lawyer first to make sure, that you meet the requirements for the permit (click here for legal reference in Danish).
How do I find a good lawyer?
RobinHus is a real estate agent focused on assisting sellers, and thus do not provide services to foreign buyers. If you are interested in any of our properties, we are of course happy to answer any questions in that regard, but we recommend that you find a local lawyer to help you through the process.
There are several lawfirms specializing in foreign buyers. We often work with Ret&Råd. They have a countrywide chain of lawfirms, that specialize in buying and selling property and have offices across the country.
What transaction costs should I expect?
In Denmark the real estate agent is paid by the seller while the buyer carries the cost of his/her own advisor, which is usualla a lawyer. The typical fee for a laywer (including the permit application process) range from 10 - 20.000 DKK.
In addition to the lawyers fee you must pay a deed tax of 1.400 DKK plus 0,6% of the purchase price. If you take out a mortgage (which is available for foreigner buyers) you must pay an additional 1.400 DKK plus 1,5% of the mortgage value.
What should I expect to pay for a home in Denmark??
Like most other western countries the Danish property market has been through a boom-and-bust cycle over the last decade. The graphs below document the development in property prices for houses and apartments. Property prices increased rapidly fueled by a combination of strong economic growth and deregulation of home finance – including the introduction of mortgages without installment payments and variable interest rates. This reduces borrowing costs and led to a boom in property prices – especially in Copenhagen.
The bubble burst in 2007 and prices started falling. This trend was reinforced by a severe local credit crunch following the collapse of Lehmann Brothers. Government support of the financial sector through guaranties and protection of depositors has led to a gradual normalization of the market which is still in progress. Most Danish economists currently (july 2014) share a prediction of relatively stable price development in line with the current - low - inflation.