Parcelhusreglen (tax-free home sale)

Under the parcelhusreglen, the profit from selling your own house or owner-occupied flat in Denmark is normally tax-free, provided the home served as a residence for you or your household during ownership and the land is under 1,400 m². Larger plots have two exceptions.

Two conditions must be met: the home has genuinely served as a residence for you or your household during all or part of your ownership, and the land is under 1,400 m².

If the land is 1,400 m² or larger, the sale can still be tax-free in two ways: if the plot cannot be subdivided into a separate building lot, or if a subdivision would, according to Vurderingsstyrelsen, reduce the remaining area or buildings by more than 20 %.

You do not have to live in the home at the moment of sale. The home simply needs to have kept its character as a residence.

The rule applies only to individuals, not to companies. If in doubt, ask Skattestyrelsen for a binding ruling before you sell.