Remember deductions for property abroad: Report correctly and avoid unnecessary tax

As the owner of a vacation home abroad, you must pay property value tax to Denmark - in the same way as for a Danish home and at the same rates. In addition, you can claim deductions for foreign tax paid and interest expenses. But this requires you to ensure that you report correctly.

What do you need to be aware of?

• New value of your property: You must report an updated value of your foreign property yourself. The value is usually determined based on the purchase price of the property, adjusted with a price index for the country in question to correspond to the price level for Danish properties. You can find the relevant index figures on the Danish Tax Agency's website here.
• Paid foreign tax: Have you paid tax on your property abroad? Remember to report it. This is the only way to ensure that you get a possible reduction in the Danish property value tax.
• Interest expenses: Do you have a loan on your foreign property? Then remember to check whether the interest expenses have already been reported to the Tax Agency. If the bank has reported the loan as a foreign loan (loan in a foreign property), the interest expenses are not automatically included in the information form. In that case, you need to report them yourself so you don't miss out on the deduction. At the same time, be careful not to report interest expenses twice if they are already included.

Tax rebate 

If you bought the property before January 1, 2024, the same rules apply as for Danish properties: A tax discount is given so that the property value tax in 2024 does not exceed the tax you paid in 2023. This discount is continued in future years by the same amount and does not increase further - even if the property value increases in the future.

Contact us

Head of the tax department
Flemming Saabye
+45 39 53 50 38

Jannik Petersen
Tax consultant
+45 39 53 50 47