For foreigners it is very difficult to buy a house in the Danish kingdom. Especially a second home seems almost impossible. In this respect, Denmark and the Netherlands are not at all similar. The Danish government itself has set the bar high for foreigners to buy a house in the country. There are all kinds of conditions and requirements that potential buyers must meet when they want to buy a house in Denmark.
In this article we try to provide you with the best and clearest information possible about buying a house in Denmark as a Dutch citizen. Are you thinking about buying or renting a house? emigrate to Denmark? Then read on quickly.
Why buy a house in Denmark?
More and more people are choosing to buy a house in Denmark. It often starts with the idea of buying a holiday home, but this quickly changes to emigration. The country has beautiful nature, lots of space and everything is very well organised. Think not only of the stable economy, but also of their good social safety net. Maybe you have a different reason for your emigration, but it doesn't really matter why you want to move to Denmark? It is a fantastic country. When you stay in Denmark you will notice that buying a holiday home is not enough and it really is the new destination for people who want to emigrate.
People often think that buying a house abroad is very expensive, while it is often not even much more expensive than in the Netherlands. The average costs for buying a house in Denmark are for example about 5% higher than in the Netherlands. The average price of houses in Denmark will therefore not disappoint you very much.
Yes, Denmark is generally a lot more expensive compared to the Netherlands, but buying a house in Denmark can actually be advantageous!
Popular regions and cities in Denmark
Jutland is very popular among foreigners, because it borders Germany. This part of Denmark is therefore easy to reach by car. The rest of Denmark is surrounded by sea. Jutland is beautiful, because it has beautiful nature and you can relax wonderfully there. The capital Copenhagen is also located on this island, which of course makes it very popular with young people. Furthermore, Zeeland is also a popular area.
House hunting in Denmark
Many people wonder how on earth they can go house hunting in Denmark. This is actually not that different from other countries and the Danish market actually has a lot to offer.
Through a broker
Real estate in Denmark is often sold by real estate agents. What is good to know is that the brokerage fee is paid by the buyer. In Jutland it has been agreed that these costs are divided between the buyers and sellers. This means that not only 1 person pays the brokerage fee, but everyone contributes.
Through a housing association
In Denmark you can also buy houses through cooperative housing companies. In Denmark you can separate these into two groups. There are the non-profit cooperatives 'almene andelsboligerforeninger' and the private cooperatives 'private andelsboligforeninger'.
When you buy an apartment from these cooperatives, you have no right to the apartment and you are not really the owner. In that case, you own a share in the building of the housing company. As the apartment owner, you can use the apartment, but it remains the property of the housing company. Doesn't that sound very complicated?
Conditions for buying a property in Denmark
You would think that Denmark, as a member state of the European Union (EU), would have roughly the same rules as other countries in the EU, but unfortunately this is not true. There are fundamental differences with other European countries. In order to buy Danish real estate, you must be resident in the country and have an income in the country, so a permanent job in Denmark. Permanent employment is very important in this case. Your income from the Netherlands is therefore of no use to you. It is also possible that you are a self-employed person with an independent company, but this must also be registered in Denmark.
If you live in Denmark (for at least five years) you do not need a special permit. The same applies to inheriting a holiday home.
Do you not meet the requirements?
If you do not meet the requirements of the Danish government, there is another way to buy a permanent home. For this, you need permission from the Danish Ministry of Justice. You must be able to prove that you have a special relationship with the country. Your relationship can be business, family or cultural. After your application, you must also be very patient, because the average waiting time is about 8-10 weeks.
Buying a holiday home in Denmark
Holiday homes in Denmark are for vacation and therefore you are not allowed to live there permanently. You may only use these homes in the summer. In Danish, these homes are also called a 'summer house'. From October to March, you may not stay there for more than three weeks at a time. It is very rare that the Ministry of Justice in Denmark issues an annual permit for living in a holiday home.
An exception applies to pensioners who have owned their holiday home for more than 1 year. They are allowed to stay in the home permanently.
A holiday home is probably not an option..
As you have read, it is very complicated and almost impossible to buy a holiday home or second home in Denmark. In fact, you can only buy a home there if you live or work there. Other countries in Scandinavia are somewhat easier in this respect. In Norway or Sweden, it is actually quite easy to buy a home as a foreigner. And it is also good to know that the house prices there are also a lot more favourable.
Strict regulations
We can tell you that once you have been able to buy your house in Denmark, you are still not free from the strict regulations in the country. First of all, you are not allowed to use or rent out your home as a holiday home. The home must and will be permanently occupied and this must always be by someone who works in Denmark. When you stop working in Denmark and leave Denmark permanently, you are obliged to sell your home immediately. This way, there are immediately new homes on the housing market for Danes to buy.
The purchase contract
When everyone, so the buyer and seller, agree and want to execute a real estate transaction, a purchase contract 'slutseddel' is drawn up. This contains all the terms of the transaction. This is drawn up by a lawyer. This lawyer charges a fee that depends on the value of the purchase price. Therefore, make sure that you hire a very good lawyer so that you can be sure that everything goes well.
Furthermore, a transfer agreement 'skode' is also drawn up on the basis of the purchase contract. With this, the buyer can use this document as proof of ownership. When buying, make sure that you will conduct good negotiations with the seller, because he may still drop the price a little.
Financing your home
In Denmark, of course, you also need a mortgage and many buyers can easily take over a mortgage. If you want more information about this, you can request information about easements in the digital land registry in Denmark. This land registry is public and accessible to everyone. In Denmark, it is considered important that you can invest approximately 40% - 50% in your own capital.
Apply for a loan
When you apply for a loan from the bank, you will need the following documents:
- A purchase contract. In Denmark you do not need a notary for this, but a lawyer is often used.
- If you are already the owner, you will need proof of ownership. This is the cadastral extract.
- Names
- A list of the construction costs
- A clear and correct calculation of the living space and the enclosed space
- A floor plan of the house
- Photos of the house
- A power of attorney from all property owners
- Your fire insurance card
- A supplementary agreement for cross-border financing
The bank will assess everything and determine whether you will get the loan. This estimates the market value of the home by its own appraisers who inspect the home, but sometimes an external party is also used, in which case a construction expert is also used. Here, for example, the defects in the home are examined.
Additional costs
The costs for this procedure are largely for the borrower, so the buyer of the house. If you are entitled to certain compensation, you will also be informed about this in advance.
Is everything approved?
When everything is approved by the lender, probably the bank, a letter of agreement and loan agreement will be drawn up. You need to sign this, after which an independent Danish lawyer will be contacted who will look at the mortgage assignment.
Best books about emigrating to Denmark
Many people are thinking about making their dreams come true in Denmark. These books give you super good insight into everything that comes around the corner when emigrating to Denmark.
Enjoy reading!
Finally..
Are you, like many other Dutch people, interested in moving to Denmark? Then it is wise to prepare yourself well for this. For the inhabitants of the country itself, it is of course easy to buy a house, because they have no special requirements that they have to meet. They also know much better how the regulations in their country work. However, it is true that if you prepare well, you can easily arrange everything.
Many have gone before you and are now living a happy life in Denmark. A golden tip from us to you is: good preparation is half the battle! Then everything will be fine.
Do you have any questions?
Do you have any specific questions about your move to Denmark or buying a house in Denmark? Then you can always consult the other articles on our website. We have a lot more information about moving to Denmark.
Are you still in doubt about your destination? And is there a small chance that you might emigrate to another country? For example Portugal? Then you can also find a lot of information about other countries on our website.
We are there for emigrating Dutch people and are happy to help you with this process!
