← Guides / Property Tax

Denmark Property Guide — Non-Danish Companies Owning Danish Property

for non-Danish companies owning real property in Denmark — registration, CVR number, corporation tax, tax return filing, payment from non-Danish banks, and deadlines.

Income from real property in Denmark is subject to tax in Denmark under section 2 of the Danish Corporation Tax Act (Selskabsskatteloven). This means non-Danish companies that own Danish property must register with Danish authorities, file annual corporation tax returns, and pay tax on rental income and capital gains. The tax liability applies regardless of whether the company is resident in an EU/EEA country or a third country. This guide covers the full process: registration, tax return, payment, and dissolution. All amounts are in Danish kroner (DKK). For related topics, see our Property Tax Guide →, Cross-Border Tax Guide →, and Company Forms Guide →.

Registration Requirements

Non-Danish companies owning real property in Denmark must apply for registration. The registration is required under section 33(7) of the Danish Property Tax Act (Ejendomsskatteloven) — all property owners must have a CPR or CVR number.

How to register: Complete form 40.112 (Registration of Non-Danish Company) via virk.dk. Indicate the reason for tax liability and tick box 11 "The company owns real property". See box 14 for further instructions. Supporting documentation should include:

  • Proof of the company's legal existence (certificate of incorporation, registration document from home country).
  • Documentation of property ownership (deed, purchase agreement, property register extract).
  • Details of the company's board members and beneficial owners.
  • Contact information for the company's Danish representative (if applicable).

Submit the completed form and supporting documentation by email to virksomhed@erst.dk (the Danish Business Authority) or by post to the address stated on the form. The Danish Business Authority is responsible for allocating the CVR number, which serves as the company's Danish tax identification number.

Ongoing obligation: Registration is linked to the obligation to report. As long as the company owns Danish property, it must file annual tax returns and pay any applicable taxes. If the property is sold, the company must deregister and file a final tax return. The obligation to register applies to all non-Danish companies — EU/EEA and non-EU/EEA alike.

Tax Liability

Non-Danish companies owning Danish property are subject to limited tax liability in Denmark — only their Danish-source income from the property is taxed, not their worldwide income.

Taxable income includes:

  • Rental income — Gross rental income from the property minus deductible expenses (maintenance, interest on property loans, property taxes, insurance, management fees, depreciation).
  • Capital gains on sale — Profit from the sale of Danish real property is subject to the Danish Property Gains Tax Act (Ejendomsavancebeskatningsloven). The gain is calculated as the selling price minus the acquisition cost and any improvements, adjusted for inflation. The gain is included in the company's taxable income and taxed at 22%.
  • Recovered depreciation — If the company has claimed tax depreciation (afskrivning) on the property under the Danish Depreciation Act (Afskrivningsloven), any recovered depreciation upon sale is also taxable.

Corporation tax rate: The standard rate of 22% applies to the taxable income. The rate is the same as for Danish-resident companies. There is no reduced rate for non-resident companies.

Property tax (ejendomsskat): In addition to income tax, the company must pay annual property tax to the municipality where the property is located. This is a separate tax based on the property value, not on income. The property tax bill is sent to the company's registered address in Denmark or to its digital post.

Withholding tax on rent? Rental payments from the property to the non-Danish company are not subject to withholding tax (the company pays corporation tax on net rental income instead). However, if the company pays interest to a foreign lender, Danish withholding tax of 22% may apply unless reduced by a double taxation treaty.

Filing the Tax Return

Non-Danish companies must file an annual corporation tax return through TastSelv Erhverv. The return is filed in the DIAS (Digital Indberetning til Anmeldelse af Selskabsskat) system.

Deadline: The tax return must be filed within 6 months after the end of the income year. For a company with a calendar-year income year (1 Jan – 31 Dec), the deadline is 30 June. The exact deadline is displayed in the tax return section of E-tax Corporation Tax.

Step-by-step filing process:

  1. Log on to E-tax for businesses (TastSelv Erhverv).
  2. Select "Skat for selskaber m.fl." (Tax for companies etc.).
  3. Select "Selskabsskat" (Corporation tax).
  4. Select "Selskabsskat" again.
  5. Select "Oplysningsskema (selvangivelse)" (Tax return).
  6. Select the correct income year from the drop-down menu and click "Skift visning".
  7. Select "Begynd indberetning" (Start reporting).
  8. Complete all relevant fields including rental income, expenses, and capital gains/losses.
  9. Continue until "Kvittering" (Receipt) is shown — this confirms successful submission.

Late filing penalties: If the tax return is not filed by the deadline, the company is charged a penalty of DKK 200 per day after the deadline. The maximum penalty is DKK 5,000 per income year. After the maximum is reached, SKAT may make a discretionary assessment.

Paying Tax

Tax is paid via the company's Danish Tax Account (Skattekontoen). The Tax Account is automatically created upon registration.

Tax on account: Non-Danish companies must pay corporation tax in instalments, similar to Danish companies. Ordinary tax on account is due 20 March and 20 November. An optional third instalment can be paid by 1 February after the income year. The instalments are based on 50% of the average corporation tax of the past three years. If the company has no prior Danish tax history, the initial instalments may be based on estimated income.

Final tax assessment: SKAT sends a tax assessment notice in October after the tax return is processed. If the company has outstanding tax to pay, it must be paid by the deadline stated in the assessment notice to avoid additional interest and fees. If overpaid, the surplus is refunded via the Tax Account.

Paying from a non-Danish bank account: If you pay from a non-Danish bank account, you must use the following information and include your CVR number (8 digits, no spaces) in the message/comment field:

  • IBAN: DK87 0216 4069 1633 94
  • BIC/SWIFT: DABADKKK
  • Account number: 02164069163394
  • Account holder: Skattestyrelsen (Danish Tax Agency)
  • Comment field: Your 8-digit CVR number (numbers only, no spaces)

Payments are applied to your Tax Account using the FIFO principle (first in, first out). Older debts are settled before newer ones. For more on the Tax Account, see our Tax Account Guide →.

Selling the Property and Deregistration

When the non-Danish company sells its Danish property, several tax obligations are triggered:

Capital gains tax: The profit on sale (selling price minus acquisition cost and improvements, inflation-adjusted) is taxable income. File the gain in the tax return for the year of sale. The property gain is calculated under the Danish Property Gains Tax Act. Depreciation previously claimed must be recovered and included in income.

Final tax return: File a tax return covering the period from the start of the income year to the date of sale. After sale, the company may still need to file returns if it has other Danish-source income.

Deregistration: When the company no longer owns Danish property and has no other Danish tax obligations, it should deregister with SKAT. Submit a request to SKAT via the contact form at skat.dk, stating that the property has been sold and the company has no further tax liability in Denmark. Include the sale details and proof of the transaction. After deregistration, the CVR number may be closed. For more on closing obligations, see our Closing a Business Guide →.

Double Taxation Treaties

Denmark has an extensive network of double taxation treaties. Under most treaties, Denmark retains the right to tax income from real property located in Denmark. However, the treaty may:

  • Limit the rate of Danish withholding tax on certain payments (interest, dividends paid by the company).
  • Provide that the company's home country must grant a foreign tax credit for Danish tax paid on property income.
  • Provide an exemption from Danish tax for certain types of income if the company has no permanent establishment in Denmark (though property itself may constitute a permanent establishment).

For property income, the OECD Model Treaty generally provides that income from real property is taxable in the country where the property is situated (Denmark). The company's home country then typically grants relief through the foreign tax credit method or exemption method. Check the specific treaty with your home country. For more, see our Cross-Border Tax Guide →.

Contact

For help with registration, tax return filing, or general questions, contact SKAT:

  • Phone: +45 72 22 28 82 (for non-Danish companies).
  • Email (with CVR): Use the contact form at skat.dk/contact (select "Other queries" and "Without logging on" if the company has no CVR number).
  • Email (advisers): raadgiver@sktst.dk (for authorised representatives).

FAQs

Does a non-Danish company need to register in Denmark if it owns property?

Yes — all non-Danish companies owning real property in Denmark must register via form 40.112 at virk.dk. You will receive a CVR number for tax purposes. Registration is required under section 33(7) of the Danish Property Tax Act.

What tax does a non-Danish company pay on Danish property?

Corporation tax at 22% on net rental income and capital gains on sale. Plus annual property tax (ejendomsskat) to the municipality. Interest on property loans and other expenses are generally deductible.

How do I file a tax return for a non-Danish company owning Danish property?

Through TastSelv Erhverv → "Skat for selskaber m.fl." → "Selskabsskat" → "Oplysningsskema (selvangivelse)". The deadline is 6 months after the income year-end (e.g., 30 June for calendar-year companies). Late filing incurs a penalty of DKK 200/day, max DKK 5,000.

How do I pay tax from a non-Danish bank account?

Use IBAN DK87 0216 4069 1633 94, SWIFT DABADKKK, account holder "Skattestyrelsen". Include your 8-digit CVR number in the message field (numbers only, no spaces). Payments are applied FIFO to your Tax Account.

What happens when I sell the Danish property?

Capital gains on the sale are taxable at 22%. File a final tax return covering the sale period. After sale, deregister with SKAT. You may need a §216 payment declaration confirming no outstanding tax debt before closing the CVR number.