Buying a home in Denmark when you live abroad

Check that you are allowed to buy

The rules are strict, and getting them wrong can be expensive. As a general guide, based on public information from the Danish Ministry of Foreign Affairs and The Local:

• EU/EEA citizens can usually purchase without permission. Depending on your circumstances, you make a declaration when the home is registered, confirming that you meet the demands. The rules regarding summer houses are very restrictive, so you can only purchase a house to live in.
• Citizens from outside the EU need permission from the Danish authorities before they buy, unless they have lived in Denmark for five years. You do not need to have lived here for the last five years, and the five years can also be combined.
• Permission is tied to a specific property. It is not a general licence to buy. I will help you navigate the rules once you find the right property. As a rule of thumb, I recommend that you apply as soon as possible, as it can take up to four weeks to process the application.

A home bought as a permanent dwelling also comes with duties. Until you have lived in Denmark for a longer period, you may not be able to rent it out or leave it empty for long.

Arrange the financing

How you finance the purchase depends on one thing: whether you live in Denmark.

If you will use a loan from your current bank, talk to them before you do anything else. Ask how much they will lend against a home in Denmark, what they need from you, and how long it takes. Also ask how quickly they can transfer the money when it is time to pay.

Either way, settle the financing first. A good offer is one you know you can pay for.

Find the right home from a distance

Most Danish homes are advertised on a few large property portals, such as Boligsiden.dk and Boliga.dk, and on estate agents’ own sites. The listings are in Danish, the prices are in kroner, and the descriptions use terms that can be hard to translate.

This is where an advisor makes the biggest difference. Instead of searching on your own and hoping that a translation tool gets it right, I:

1. Talk with you about what you want: area, size, budget, how you will use the home.
2. Search for homes that match, including homes that are not easy to find in English.
3. Send you the short list, with each home explained in plain English.

You do not need to speak Danish. I read the Danish, and I explain what matters.

Screening the house

You can learn a great deal about a home before anyone walks through the door. The documents and information that come with every Danish property sale tell you about the condition of the building, the electrical system, the running costs and the risks. Reading them carefully shows you which homes are worth your time, and which are not. That is what I call a screening. For each home on your short list, I go through:

• The sales particulars (salgsopstilling). The seller’s presentation of the home, its price, running costs and conditions of sale. The estate agent has to include all relevant information about the property as well as all known future changes.
• The condition report (tilstandsrapport). A report by an independent building expert, which lists defects and how serious they are.
• The electrical installation report (elinstallationsrapport). An inspection of the wiring and electrical system, with comments on anything that is not up to standard.
• The energy label (energimærke). A rating of the home’s energy use, from A2020 (best) to G (worst), based on a calculation of how much energy the building needs for heating, hot water and so on, given its insulation, windows and heating system.

Together these reports give you a very good idea about the house and its technical condition. However, they do not replace seeing the home. I always recommend seeing the house in person before making the decision to buy. Some estate agents offer a video call to give you an idea if the house could be your new home.

Make an offer and negotiate

In Denmark you usually make an offer to the estate agent, and the agent passes it on to the seller. The agent is paid by the seller and works for the seller. That is why it helps to have someone who works only for you.

A good offer is not only about the price. It also covers:

• The takeover date.
• Conditions that protect you, for example that the purchase depends on your financing and on any permission you need.
• Anything in the reports that should change the price or the terms.

Once you and the seller agree, a purchase agreement is drawn up. The purchase agreement is always dependent on my approval, so it is safe to sign before reading all the content. Please note that the purchase agreement is a legal document that translates really poorly. Its paragraphs need to be analysed and explained by a professional.

As your advisor, I usually have between 4 and 6 business days to approve the deal before it is legally binding for you. If I find something in the purchase agreement or in the documents that needs to be changed, I have the opportunity to do this within those 4 to 6 business days.

Sign from abroad with a power of attorney

You do not have to travel to sign. In Denmark, a buyer can sign with a power of attorney (fuldmagt), which lets me sign the deed on your behalf.

The power of attorney must be written correctly and cover exactly what it needs to cover. This is a step where small mistakes cost time, so I recommend that it is prepared with care.

Payment, registration and taking over the home

After signing, the purchase moves through a few more stages:

1. The deposit and the final payment, handled through the channels set out in the purchase agreement. I will advise you about this as part of my job.
2. The deed (skøde), which is the document that transfers ownership.
3. Registration (tinglysning) at the Danish land registry, which makes your ownership official.
4. The takeover date (overtagelsesdag), when the keys are yours.

Between signing and takeover, you need home insurance and a plan for utilities. I assist with these as part of the package.