Deduction for interest expenses

Your bank, mortgage credit institution, etc. reports information about your annual interest expenses on your loans to us. You automatically get a deduction for the interest expenses in your tax assessment notice.

Box 41 shows interest expenses on debt to mortgage credit institutions.

Box 42 shows interest expenses on debt to banks, finance companies, account arrangements, etc.
This box also includes interest expenses on promissory notes held in custody and interest on overdue payments charged by regions and municipalities.

You must not report interest expenses in your tax assessment notice if they already stated. It's your responsibility to check that the information is only reported in one box.

If 3 or more of you share a loan

If 3 or more of you are jointly liable for a loan, you'll now also automatically receive a deduction for your interest expenses from and including the tax assessment notice for 2025.

You have to report some interest expenses in your tax assessment notice to get a deduction. You do so in in box 44 (Other interest expenses).

You always have to report your own share of the interest expenses.

• Private interest expenses
  • Interest expenses on debt to private individuals.
  • Interest expenses related to promissory notes not held in custody.
  • Interest expenses from settlement statements when buying or selling real property that are not already reported in boxes 41 or 42.
  • Interest expenses paid to a business with a CVR number that are not reported in box 42.

To get a deduction for private interest expenses, you have to state who the recipient is, i.e. who you pay the interest to.

• Establishment fees and guarantee commissions
  • Guarantee commissions paid in connection with refinancing of loans.
  • Establishment fees, one-off premiums and similar one-off payments for loans where the agreed loan term is less than 2 years.
• Interest expenses on other debt
  • Interest expenses on joint loans taken out through an owners’ association and paid via your monthly contributions.
  • Difference interest when redeeming or refinancing mortgage loans, not reported in box 42

You must not report interest expenses in box 44 if they are already stated in another box. It's your responsibility to check that the interest expenses don't appear elsewhere in your tax assessment notice.

Interest expenses on loans in arrears

If you have not paid interest from previous years (meaning that you are in arrears), the interest expenses will not appear in boxes 41 and 42.
You can get a deduction for interest that has been paid. You have to submit documentation for the paid interest to us, and if you need help, please call us on +45 72 22 28 28.

You can't deduct the following interest expenses:

• Interest on taxes, labour market contributions, special pension savings schemes and customs and excise duties
• Interest on debt assumed as an advance inheritance or as a gift to children, grandchildren, adopted children, foster children, stepchildren and their children and spouses
• Interest on loans granted under the act on loans for payment of property taxes
• Interest on housing benefit loans granted under the act on housing benefits for pensioners or the act on individual housing support
• Interest covered by a tax-free subsidy (this could be urban renewal loans)
• Interest payable by a cooperative housing association and not the individual member, even if the member pays the interest via the housing charge
• Recovery interest charged once your debt has been transferred for collection by the Danish Debt Agency. You can read more about the rules here.

If you have not paid your interest expenses for previous years, you can only receive a deduction once the interest has been paid.

You must report the following interest expenses yourself on your tax assessment notice under Non-Danish income in box 432 or 493:

• Interest expenses on non-Danish debt
• Interest expenses on loans taken out in Denmark relating to non-Danish matters
  • Loans taken out with a Danish mortgage credit institution relating to non-Danish property are stated in box 41 in your service letter.

Read more about non-Danish property.

If you want a different split of the interest expenses, you can change how the they're split in your tax assessment notices.

Only the spouse who wants to transfer part or all of their interest deduction needs to transfer the interest expenses to the other spouse:

1. Log in to TastSelv
2. Select Change your tax assessment notice/tax return
3. Click the calculator next to box 41 or 42
4. In the field “Beløb du vil flytte til din ægtefælle" (Amount you want to transfer to your spouse), enter the amount you want to transfer
5. Remember to save your changes

The interest expenses are then automatically transferred to the receiving spouse’s Tax assessment notice.

Researcher tax scheme and non-Danish income

The right to transfer interest deductions doesn't apply if you or your spouse are taxed under the researcher tax scheme (sections 48E or 48F of the Withholding Tax Act), or if you have non-Danish income where tax relief is granted under sections 33 or 33A of the Danish Tax Assessment Act.

If you're not married, you can't transfer interest deductions between your tax assessment notices unless you have actually transferred the debt between you.

If 2 or more of you are jointly and severally liable, you may enter into an agreement among yourselves not to be equally liable. This constitutes a real transfer of debt, and the right to deduct interest expenses changes accordingly.

See 3 example below where the debt has been transferred between he parties of the loan withouth changing the loan agreement