Renting out your holiday home
You will be taxed on some of your rental income if you rent out your holiday home. You can choose between a fixed standard tax deduction or an accounting tax deduction (in Danish regnskabsmæssigt fradrag).
Change of reporting deadline for tax assessment notice 2023: If you have rented out your holiday home via an online platform, you can report your rental income in E-tax until 1 July 2024.
Please note that the information on this page is only relevant for rental. Read more in Danish about rules on renting out your holiday home (plainfo.dk).
Calculate your taxable income (when you apply the standard deduction, in Danish)
Enter your rental income in your tax assessment notice
Enter your rental income in your preliminary income assessment
When you rent out your holyday home, you get a standard deduction. The size of this deduction dependt on how you do it.
- In 2024, the first DKK 12,700 (DKK 12,200 in 2023) is tax exempt per holiday home if you rent it out as a private individual.
- In 2024, the first DKK 46,100 (DKK 44,500 in 2023) is tax exempt per holiday home if you rent it out via an agency.
- Rental income in excess of the above amounts is taxed at a rate of 60%.
Your actual expenses are not deductible. This means that you can only deduct expenses related to rental. You are entitled to the full standard deduction even if you buy or sell your holiday home during the year.
| Rental income, incl. electricity, heating and water | DKK 33,800 |
| Standard deduction | DKK -12,700 |
| Income in excess of standard deduction |
DKK 21,100 |
| Taxable income (60% of DKK 21,900) | DKK 12,660 |
Enter your taxable income on your tax assessment notice in box 37 or in your preliminary income assessment in field 218.
If you choose to make use of the accounting deduction, you will be taxed on your rental income minus the actual expenses. This income is considered income from capital.
Enter your income minus your expenses in box 37 in your tax assessment notice and in field 218 in your preliminary income assessment.
You should keep a record of rental income and expenses that you must be able to present to us upon request. You must have receipts for items you are deducting.
Income:
The rental income is the total amount you receive, including payment for electricity, water and heating, for example.
Expenses:
You are entitled to deduct expenses you incur in the period you rent out your holiday home.
- Expenses directly related to renting out your holiday home, advertising expenses, for example.
- Electricity, water, heating, for example.
- Maintenance expenses and depreciation of fittings and furniture (domestic appliances excepted).
- You are not entitled to deduct maintenance expenses related to the actual property.
If you use the accounting deduction method, you cannot revert to the standard deduction.
Land tax (property tax) deduction
You can deduct your land tax for the weeks you rent out your holiday home. A year has 52 weeks, so if you rent out your holiday home for four weeks, for example, you can deduct 4/52 of your land tax as an expense.
Property value tax relief
You do not have to pay property value tax for the period you rent out your holiday home. You obtain the relief by entering the rental period in your tax assessment notice.
Example: 8 weeks of rental
| Renting out | DKK |
| Rental income, including electricity, heating and water | 33,600 |
| Expenses for electricity, heating and water in the rental period | -3,600 |
| Proportional part of house contents insurance (8/52) | -1,000 |
| Proportional part of house contents insurance (8/52) | -1,000 |
| Proportional part of expenses for maintenance of furniture (8/52) | -1,000 |
| Proportional part of land tax (8/52) | -2,000 |
| Advertising expenses | -3,000 |
| Rental income to be reported | 22,000 |
If you rent out your Danish holiday home via an agency that reports to us, you automatically obtain the standard deduction.
- In 2024, the standard deduction is DKK 46,100 (DKK 44,500 in 2023).
If you are paying for electricity, heating, water, final cleaning, etc. you need to add the relevant amount in box 37 in your tax assessment notice and in field 218 in your preliminary income assessment.
If you co-own the holiday home, we distribute the rental income and standard deduction between the owners according to how much you each own.
If you have only owned the holiday home for part of the year, you need to enter the taxable amount in box 37/field 218.
If you want the accounting deductions to apply to you, you need to enter your income minus your actual expenses in box 37 in your tax assessment notice and in field 218 in your preliminary income assessment.
Holiday homes located outside Denmark
From 1 January 2023, the reporting of holiday rental income has to figure on the BFE no. of the property. Non-Danish property doesn't have such a number.
If you rent out a holiday home located otside Denmark, you have to calculate your taxable income and enter the amount in box 37 of your tax assessment notice.
When the agency reports the rental income to us without a BFE no., you are still entitled to the standard deduction for holiday home rental even though we can't included that in our calculation.
Calculate your taxable income (when you apply standard deduction)
A new act means that the rental agency needs your personal data
If you rent out your holiday home via a digital platform, you may be contacted by the the agency running the platform to get your full name, you CPR no., your home address and other personal data.
And especially for rental of holiday homes, the agency will ask for the BFE no. of the property. It's optional if you want to state this number, but it is required to preprint taxable income in your tax assessment notice.
About the EU directive DAC7
On 1 January 2023, a new EU directive, DAC7, took effect instructing platform operators (agencies offering platforms for owners who want to rent out something) to report new information about their users (the owners) to us. The information will enable European tax authorities to identify the users of the platforms and get information on the money the users earn via the platform.
If the agency doesn't get your personal data
If the agency doesn't get your personal data, it may be ordered to stop payments to your account.
If you rent out your holiday home privately in addition to letting an agency rent it out, you need to pay 60% tax of the rental income you earn on the private rental.
If your income from the agency rental is less than the standard deduction for renting out your holiday home privately, which is DKK 12,700 in 2024 (DKK 12,200 in 2023), you are entitled to deduct the remaining amount of your standard deduction before calculating your taxable income.
You need to enter you taxable income in box 37 of your tax assessment notice.
Example: Agency rented out for less than DKK 12,700
| Renting out | DKK |
| Rental income from agency incl. electricity, water and heating | 5,200 |
| Standard deduction not used: DKK 12,700 - DKK 5,200 = | 7,500 |
| Rental income from private rental, incl. electricity, water and heating | 10,000 |
| Private income less the remaining standard deduction: DKK 10,000 - DKK 7,500 kr.= | 2,300 |
| Taxable income: DKK 2,300 x 60% = | 1,380 |
Example: Agency rented out for more than DKK 12,700
| Renting out | DKK |
| Rental income from agency, incl. electricity, water and heating | 15,000 |
| Rental income from private rental, incl. electricity, water and heating | 10,000 |
| Taxable income: DKK 10,000 x 60% = | 6,000 |
If you only use your holiday home for renting out, it is considered commercial rental. Commercial rental of holiday homes requires an authorisation from the Danish Nature Agency (Naturstyrelsen). Generally, the Nature Agency does not issue such authorisation.
For further legal information in Danish see our legal guide .