How to buy real property in Denmark

Can you buy real property in Denmark as an expat?

To buy real property as an expat in Denmark, you need to:

• Have a domicile in Denmark, or
• Have had residence in Denmark for at least five years.

Read more about the requirements at the Ministry of Foreign Affairs of Denmark .

Suppose you do not have domicile in Denmark and you have not had residence in Denmark for at least five years. In that case, you must obtain permission from the Department of Civil Affairs under the Danish Ministry of Justice to purchase real property in Denmark.

To obtain permission, you must apply to the Department of Civil Affairs .

What does it mean to have domicile in Denmark?

Having domicile in Denmark requires more than just living in Denmark. Whether or not you have domicile in Denmark is determined by a discretionary assessment of whether or not you have your fixed or permanent home in Denmark.

This assessment is based on various factors, including the length of time you have been living in Denmark, whether you’re married or cohabiting, whether you speak Danish, and whether you’re working or studying in Denmark. You can read the full list of factors here .

When have you had residence in Denmark for at least five years?

When it comes to whether or not you have had residence in Denmark for at least five years, it is not a requirement that you have lived in Denmark for five consecutive years.

It is also of no significance how old you were when you lived in Denmark or how much time has passed since you last lived in Denmark.

To assess whether you’ve had residence in Denmark for at least five years, the Department of Civil Affairs uses the information registered in the CPR system. You can read more about the CPR system and a CPR number here.

Also, you can read more about the requirements of residency at lifeindenmark.dk .

Getting approved for a mortgage

Once you’ve made sure you either have permission or don’t need permission to buy real property in Denmark, the next step is to apply for a mortgage.NB. At Lunar, we you cannot apply for a mortgage

As a Danish or EU/EEA citizen in Denmark, you can finance up to 80% of the property's value with a mortgage. The following 15% can be financed with a bank loan.

The remaining 5% is the down payment for the real property, which needs to come from your own capital — your savings, an inheritance, or similar.

If you have the money, you can also choose to self-finance more than 5% of the property. This way, the bank can loan you the difference between what you paid (minimum 5%) and 20%, while the remaining 80% is still financed through a mortgage.

If you’re neither a Danish nor an EU/EEA citizen, you can still finance up to 80% of your real property with a mortgage. However, the down payment varies from 10-40% of the purchase price. This means that your bank determines the amount you can actually borrow.

Getting approved for a mortgage in Denmark can take weeks. This means that you should apply for a mortgage as soon as you’ve decided that you want to purchase real property.

Once you’ve found the real property you want to purchase, you don’t have time to wait for the approval to come through — you might lose your dream home to another buyer.

Living in Denmark? Don’t forget your Danish bank account

Lunar is a Danish, award-winning digital bank. If you become a user, you can open a free Danish bank account that includes a digital card as well as an easy-to-use banking app.

You can also open your NemKonto with Lunar, which you’ll need to receive payments from the Danish authorities and welfare system.

The sign-up process is easy and 100% digital, meaning you can do it from the comfort of your home.