How to buy property in Denmark

Buying a place to live can be a complicated process because there are a number of requirements which apply to non-Danish citizens.

Unless you have lived in Denmark for more than 5 years, you will need to get permission to buy from the Danish Ministry of Justice (Justitsministeriet). They will issue you with a permit, but this is not just a formality and you will have to prove that you are taking up permanent residence in Denmark. The permit is free of charge and is normally issued within 2 weeks.

However, this does not apply if you are an EU citizen and if the property is going to be your permanent residence.

Citizens from countries included in the European Economic Co-operation (EEA) are also exempt from this rule. The EEA countries are Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia and Finland.

It is wise to consult a lawyer in order to clarify your specific options.

TYPE OF PROPERTY

When you are ready to buy, you will have to decide which type of property you wish to buy. There are a number of different options, as listed below:

HOUSE (DETACHED OR TERRACED)

Typically, houses are very expensive in the Copenhagen area, and they are often located a little outside the city centre. Broadly speaking, the further away you get from Copenhagen, the cheaper houses become.

OWNER-OCCUPIED FLAT

When you buy an owner-occupied flat, you own it once you have paid off the mortgage, and you can take out home equity loans.

CO-OPERATIVE APARTMENT

Co-operative housing (Andelsboliger) is based on the idea that everyone in the co-operative has bought a small part of the whole association. Therefore you share the expenses, but you cannot take out loans in your apartment. Co-operative housing used to be cheaper than owner-occupied apart- ments, but today they can be more expensive.

HOW DO I FIND A PROPERTY?

There are a number of internet property portals where you can find all the properties offered for sale by Danish estate agents.

Boligsiden is one of the biggest, but all the information is in Danish, although the presentation of the properties is usually good in terms of pictures and hard facts. In any case, most estate agents speak passable English, so you can contact the agent for further information.

Another site, BoligPortal, has quite a lot of the information in English (boligportal.dk/en/). Findbolig.nu has a help page where you can download some material in English to enable you to search on the site.

DO I NEED A LAWYER?

In short: Yes! The Danish property market is highly regulated and the purchasing agreement is an extensive document. Sellers are typically rep- resented by an estate agent and you need a competent advisor as well.

HOW DO I FIND A GOOD LAWYER?

There are several law firms specialising in foreign buyers. For example, Ret&Råd (ret-raad.dk) have a country-wide chain of law firms that specialise in the buying and selling property and they have offices across the country. Their website also has an English-friendly option.

WHAT COSTS SHOULD I EXPECT?

In Denmark the estate agent is paid by the seller, while the buyer carries the cost of his/her own advisor, usually a lawyer. The typical fee for a lawyer (including the permit application process) ranges from 10-20,000 kr.

In addition to the lawyer’s fee you must pay a deed tax of 1,660 kr plus 0.6 percent of the purchase price. If you take out a mortgage (which is available for foreigner buyers) you must pay an additional 1,660 DKK plus 1.5 percent of the mortgage value.  derstanding the supply of international workers looking to Denmark, it is well matched by demand within the country too. A small country with a small population, companies of all size are beginning to look abroad to fill vacancies. Reliance on exports also plays its part, with a steady demand for natives of important foreign markets to provide local insights and linguistic support. With this twofold action of desire and demand, it is tempting to think that a move to Denmark would be an easy one. For many, however, it is not so straightforward.

Under Their Wing

Many are fortunate enough to enjoy the support of the Danish government in making Denmark a permanent place of work. The Greater Copenhagen Career Program is a free six-month programme set up by the City to support international students in making the move to Denmark after they finish at a Danish university. It offers seminars and workshops on interview and presentation technique, CV and cover letter advice, and even LinkedIn tailoring.

With the support of a personal career mentor, participants are encouraged to explore their preferences and consider their qualities in order to land a job in the Danish job market. But they are not the only ones that enjoy support from the state.