Renting out your holiday home

When you rent out your holyday home, you get a standard deduction. The size of this deduction dependt on how you do it.

• In 2025, the first DKK 13,100 (DKK 12,700 in 2024) is tax exempt per holiday home if you rent it out as a private individual.
  
  
• In 2025, the first DKK 47,900 (DKK 46,100 in 2024) is tax exempt per holiday home if you rent it out via an agency. 

You pay tax on 60% of the excess rental income.

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. 

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 or a platform that reports to us, you automatically obtain the standard deduction.

In 2025, the standard deduction is DKK 47,900 (DKK 46,100 in 2024). 

• 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/platform 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 13,100 in 2025 (DKK 12,700 in 2024), 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.

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.

Example: Agency rented out for less than DKK 12,700 (standard deduction for 2024)

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.=	2,500
Taxable income: DKK 2,500 x 60% =	1,500

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.

Read more here: Naturstyrelsen.dk