Ejendomsavancebeskatning (property gains tax)

Property-gains tax (ejendomsavancebeskatning) is the tax on your profit when you sell Danish real estate not covered by the parcelhusreglen, typically a rental property or a parental-purchase flat you never lived in. The gain is taxed as capital income.

The rule applies to real estate that is not your own home: rentals, a parental purchase you never lived in, plots and commercial property.

The gain is broadly the disposal sum minus the acquisition sum. The acquisition sum is increased by 10,000 kr. for each calendar year you owned the property, counting from the acquisition year but not the year of sale.

The gain is taxed as capital income, so the rate depends on your other capital income. For a parental purchase it is reported in box 308 on the annual statement.

If the home served as your own residence at some point, the parcelhusreglen can make the sale tax-free. If in doubt, seek advice before you sell.