The deduction for home improvement services was discontinued on 1 April 2022. This means that you are only entitled to a deduction for home improvement services that are completed on 31 March 2022 and paid by no later than 31 May 2022. You can still claim a deduction for household services.

The following terms apply to the tax deduction for home improvement services and household services:

  • You have to be subject to general tax liability in Denmark and you must have turned 18 by the end of the year in which the work was carried out.
  • The deduction is per person per household. Spouses and cohabiting partners with joint finances may split the deduction as they wish, regardless of who paid for the services.  Each spouse/cohabiting partner is entitled to a tax deduction for household services of DKK 6,400 in 2022 (DKK 25,000 in 2021) and DKK 12,900 in 2022 for home imrpovement services (DKK 25,000 in 2021). The amount is not automatically transferred between spouses so you both have to enter your share.
  • Children aged 18 or more living at home may claim the deduction if they have paid for the service themselves.
  • To get a tax deduction, the amount must be paid by dankort, MobilePay or online banking.  Cash payments are not tax deductible.
  • You have to live in your all-year residence while the work is ongoing to get a deduction. If you have more than one all-year residence, you are only entitled to a deduction for home improvement services for work done in the home that you have registered with Folkeregisteret as your residence.
  • Even if you have an all-year residence as well as a holiday home, you are entitled to a maximum tax deduction for household services of DKK 6,400 in 2022 (DKK 25,000in 2021) and DKK 12,900 in 2022 for home improvement services (DKK 25,000 in 2021).
  • You are only entitled to a deduction for home improvement services for maintenance and renovation of an existing all-year residence or holiday home. In other words, you cannot get a deduction for new builds.
  • You are not entitled to a deduction for expenses related to work for which you have received a subsidy according to other public schemes.
  • You are not entitled to a deduction for expenses related to work carried out by individuals whose permanent address is at the house undergoing work.
  • You must have an invoice (from a business) or a written statement (from an individual) documenting the work, and you have to pay for it electronically, regardless of the size of the amount.
  • You have to pay for the work carried out before 1 March the following year (for example, work carried out in 2021 must have been paid for no later than 28 February 2022).

You can claim a deduction for home improvement services if the services are carried out by a VAT-registered business. Non-Danish businesses must be registered for VAT in Denmark and appear in the Register of Foreign Service Providers (RUT).

Read more about Selling services with a tax deduction (business)

Search for VAT numbers in Denmark

Search for VAT numbers in the EU/EEA

Look up in the RUT Register (www.virk.dk - Danish only)

You can claim a deduction for household services such as cleaning and babysitting carried out by private individuals. Such individuals must fill in a service statement or similar, be 18 years old at the end of the income year and have full tax liability in Denmark.

Read more about Selling household services entitling the buyer to a claim a deduction for the household services (individuals)

Form: Service statement

  • Transfer to the supplier’s account via bank or online bank
  • Card payment via the supplier’s website or card terminal
  • Giro transfer form (girokort) 
  • MobilePay.

You can only deduct the share of your excess corresponding to the labour costs' share of the bill. You need to document that you have paid an excess. 

Example: 
Total bill:   50,000
Of which labour costs: 20,000
Your excess:  3,000
You may deduct:
DKK 3,000 x DKK 20,000 /DKK 50,000 =
1,200

You cannot have an income from solar cell panels or wind turbines for private while also deducting services for the same installation. Read more in Danish about what to do if you both have an income and deduct services at the website of the Danish Energy Agency (Energistyrelsen).

Please see our legal guide (in Danish) for further legal information.