Denmark Gift and Inheritance Tax Guide (Boafgift, Gaveafgift)

Inheritance Tax (Boafgift) Overview

When a person dies, their estate is subject to Danish inheritance tax before distribution to heirs. The rate depends on the relationship between the deceased and the heir:

• — Surviving spouse (ægtefælle): 0% inheritance tax on all assets inherited. Spouses are completely exempt from boafgift regardless of the amount.
• — Children and parents: 15% on the portion of inheritance above approximately 350,000 DKK (2026 threshold). Below this threshold, there is no tax. The threshold applies per child/parent, not per estate.
• — Stepchildren (stedbørn): 25% on the amount above the same threshold (~350,000 DKK). Stepchildren are taxed at a higher rate than biological children.
• — Grandchildren, siblings, and others: Taxed at the highest inheritance rate — 36.25% on amounts above the threshold. This category includes nieces, nephews, cousins, and unrelated individuals.

The threshold is per heir, not per estate. So if an estate of 1,000,000 DKK is divided among two children, each child’s inheritance of 500,000 DKK is taxed as follows: the first ~350,000 DKK is tax-free, and the remaining ~150,000 DKK is taxed at 15% (22,500 DKK in tax per child).

If the surviving spouse inherits everything and later dies, the children then inherit from the second parent. This means the children’s inheritance from the first parent is typically deferred until the second parent’s death.

Gift Tax (Gaveafgift) Rules

Denmark allows you to give gifts to family members each year up to a tax-free limit. Gifts above the limit are taxed at the recipient’s rate. The system encourages spreading wealth during your lifetime rather than leaving everything to inheritance.

Current gift tax rules (2026):

• — Annual tax-free limit to children: 80,600 DKK per child per year (2026 figure; 76,900 DKK in 2025). This is the skattefri gave (tax-free gift) threshold. Gifts below this amount require no reporting and incur no tax. Sons-in-law and daughters-in-law have a lower threshold of 28,200 DKK (2026).
• — Gifts to spouse: Unlimited tax-free gifts between spouses. There is no limit on the amount, and no reporting is required. This applies to married couples and registered partners.
• — Gifts above the limit: Taxed at 15% on the excess amount for children (the same rate as inheritance tax for children). For stepchildren, the rate is 25% on the excess.
• — Gifts to grandchildren: The annual tax-free limit also applies, but the tax rate on excess amounts is 36.25% (the highest rate). However, special rules allow grandparents to give certain tax-free gifts for education or housing.
• — Gifts to parents and grandparents: The same 80,600 DKK threshold applies, but the tax rate on the excess is 36.25% rather than 15% — significantly higher than gifts to children.
• — Adjustment for inflation: The tax-free limit is adjusted annually. Check skat.dk for the current year’s figure.

Gift tax is paid by the recipient, not the giver. The giver may choose to pay the tax on behalf of the recipient, but this payment itself is treated as an additional gift subject to tax.

Gifting Strategies for Wealth Transfer

Strategic gifting can significantly reduce the total tax burden on wealth transfer across generations. Here are the most common Danish gifting strategies:

• — Annual gifts within the tax-free limit: Give up to 80,600 DKK per child each year (2026). Over 10 years, a parent can transfer ~806,000 DKK per child tax-free. If you have two children and a spouse, both parents can give separately, effectively doubling the annual exemption to ~161,200 DKK per child.
• — Skattefri gave (tax-free gift): The annual tax-free gift is known as the skattefri gave. It requires no filing if below the limit. This is the simplest way to transfer wealth to the next generation.
• — Åremålsgave (forward gift): You can give up to 5 years’ worth of tax-free gifts in a single year (approximately 403,000 DKK for 5 years at 80,600 DKK/year). This is called an åremålsgave. It must be structured correctly to qualify — typically through a binding gift declaration. This is useful for larger one-time needs like a child’s house purchase.
• — Gifting to grandchildren: Grandchildren are in the highest tax bracket (36.25%) for gifts above the tax-free limit. However, grandparents can make direct payments for education (school fees, university tuition) or housing (deposit for a home) that may qualify as tax-free if structured as underholdsbidrag (maintenance contributions).
• — Generation skipping: While you can give directly to grandchildren, the higher tax rate makes direct transfers less efficient. A common strategy is to give to children, who then give to their own children, utilising each generation’s tax-free limits.

All gifting strategies should be documented in writing, even if below the tax-free limit. If SKAT later questions the gift, a written gift declaration (gavebrev) provides clear evidence of the transfer.

Gifts to Non-Family Members

Gifts to individuals who are not immediate family (siblings, friends, distant relatives) are treated differently. The tax-free allowances for close family do not apply:

• — No tax-free limit: Gifts to unrelated individuals or distant relatives are fully taxable to the recipient as income. There is no annual exemption.
• — Skattepligtig gave: These are called skattepligtige gaver (taxable gifts). The recipient must declare the gift as A-income or B-income on their tax return, and it is taxed at their marginal income tax rate (which can be up to 52% including AM-bidrag).
• — Giver’s position: For the giver, the gift is generally not deductible. There is no charitable deduction for personal gifts in Danish tax law (though certain donations to approved charitable organisations may be deductible).
• — Loans vs gifts: A loan with a formal repayment schedule is not a gift, but if the loan is forgiven later, the forgiven amount becomes a taxable gift. Be careful about anfordringslån (demand loans) — if SKAT deems the loan unlikely to be repaid, it may reclassify it as a gift.

If you plan to give a significant amount to a non-family member, consider structuring it through a formal loan or consulting a tax advisor to avoid unexpected tax consequences for the recipient.

Reporting Requirements

Danish gift and inheritance tax rules require specific reporting to SKAT. The obligations depend on the type and size of the transfer:

• — Gifts below the tax-free limit (~74,100 DKK): No reporting required. However, it is recommended to keep a written gift declaration (gavebrev) for documentation purposes.
• — Gifts above the tax-free limit: Must be reported to SKAT via TastSelv using form 22.019 (gaveafgiftsangivelse). The report must be filed by the 1st of May of the year following the gift.
• — Inheritance: The estate executor (bobestyrer) or the heirs file the inheritance tax return. This is typically handled by the probate court (skifteretten) or the executor named in the will.
• — Documentation needed: For gifts, you need the date of the gift, the amount, the relationship between giver and recipient, and a signed gavebrev. For inheritance, you need the will, probate court documents, and a valuation of estate assets.
• — Deadlines: Gift tax returns are due 1 May of the year after the gift. Inheritance tax must be paid within 6 months of the death, though extensions may be granted for complex estates.

Failure to report a taxable gift or inheritance can lead to penalties and interest from SKAT. If you are unsure about reporting requirements, consult a tax advisor or contact SKAT directly through TastSelv.

International Gifts and Cross-Border Inheritance

When gifts or inheritances cross international borders, additional tax considerations apply. Denmark has tax treaties with many countries to prevent double taxation:

• — Cross-border inheritance: If the deceased lived in Denmark but owned assets abroad (or vice versa), the estate may be subject to tax in multiple jurisdictions. Denmark’s tax treaties generally provide for double taxation relief, either by exempting the foreign assets or providing a credit for foreign tax paid.
• — Gifts from abroad: If you receive a gift from a person who is not a Danish resident, the Danish gift tax rules may still apply if you are a Danish resident recipient. However, tax treaties may limit Denmark’s right to tax.
• — Estate tax in another country: Some countries (e.g., the United States, the United Kingdom) impose their own estate or inheritance taxes on worldwide assets held by their residents. If you are a Danish resident with assets in these countries, you may face tax obligations there as well.
• — Double taxation relief: Denmark provides relief through either the credit method (foreign tax is credited against Danish tax) or the exemption method (the foreign asset is exempt from Danish tax). The specific treaty determines which method applies.
• — Reporting: Cross-border gifts and inheritances must be reported in Denmark even if the foreign jurisdiction already taxed them. You claim relief by filing the relevant forms with SKAT and attaching documentation of the foreign tax paid.

If you are dealing with cross-border wealth transfer, it is strongly recommended to engage a tax advisor with expertise in both Danish tax law and the relevant foreign jurisdiction. For a broader overview of Danish taxation, see our personal tax guide → and property tax guide →.

FAQs

How much can I give to my child tax-free in Denmark?

In 2026, you can give up to approximately 74,100 DKK per child per year tax-free. If both parents give separately, the combined annual tax-free amount is approximately 148,200 DKK per child. The limit applies per child, so if you have three children, you can give up to ~222,300 DKK total per year tax-free across all children. The limit is adjusted annually for inflation.

Is there inheritance tax between spouses in Denmark?

No. Assets inherited from a deceased spouse are completely tax-free (0% boafgift). There is no upper limit on the amount. However, the surviving spouse may later face inheritance tax when passing assets to children. The spouse exemption also applies to registered partners. Unmarried partners do not qualify for the exemption unless they are named in a will and meet specific criteria.

What happens if I give more than the annual tax-free limit?

The excess amount is taxed at the recipient’s relationship-based rate — 15% for children, 25% for stepchildren, and 36.25% for grandchildren and others. The tax is paid by the recipient (or can be paid by the giver on behalf of the recipient, which is itself treated as a gift). You must report the gift to SKAT using form 22.019 by 1 May of the following year.

Do I need to report small gifts to SKAT?

No. Gifts below the annual tax-free limit (~74,100 DKK in 2026) do not need to be reported to SKAT. However, it is wise to document them with a gavebrev (gift letter) in case SKAT later asks about the transfer. Gifts above the limit must be reported. Gifts between spouses are unlimited and require no reporting. Gifts to non-family members are always reportable if they exceed the de minimis threshold.

How does Danish inheritance tax apply to non-residents?

If you inherit assets from a Danish resident, you may be subject to Danish inheritance tax even if you are not a Danish resident yourself. The rules depend on the type of asset (Danish real estate, Danish bank accounts, shares in Danish companies) and any applicable tax treaty. If you inherit as a non-resident, you may also have tax obligations in your country of residence. Cross-border inheritances often qualify for double taxation relief under Denmark’s tax treaties.