Parental purchase in Denmark: tax, market rent and the rules to know

The short answer: in a parental purchase you buy a home and rent it to your child. You are always taxed on the market rent, you can give your child 80,600 kr. tax-free per parent in 2026, and the parcelhusreglen does not apply to you when you sell.

How a parental purchase works

You own the home and effectively run a small rental business, so both a tax liability and an accounting duty come with it. The child pays rent to you and can apply for housing support on the same terms as any other tenant.

You are taxed on the market rent

You must always pay tax on an amount equal to the market rent, even if you charge your child less. The difference between the market rent and the actual rent counts as a gift to your child.

Use the tax-free gift wisely

In 2026 each parent can give the child 80,600 kr. tax-free per year, that is 161,200 kr. from two parents. The gift can help with the down payment or the rent, but it does not remove the requirement that you are taxed on the market rent.

Gift tax above the limit

If you give more than the tax-free amount, 15 % gift tax is paid on the excess. This also applies if the rent discount, that is market rent minus actual rent, together with other gifts exceeds the limit.

Three taxation methods

You can choose between ordinary tax rules, the virksomhedsordning and the kapitalafkastordning. Since 2021 the tax advantages of the virksomhedsordning and kapitalafkastordning for parental purchases have been limited, so review your specific situation with an adviser.

Sale: the parcelhusreglen does not apply

When you sell, a gain is taxed as capital income under property-gains tax, because the parcelhusreglen only exempts homes the owner has lived in. One way around it is to transfer the home to the child who has lived there, but that requires its own advice. To see what the parental purchase means for your combined finances, paste the listing into Heimer.