What options does an EU citizen have to purchase real estate in Denmark?

General rule for purchasing real estate in Denmark

As a general rule, you may only purchase real estate in Denmark if you have permanent residence in Denmark or have previously lived in Denmark for a total of at least five years (combined).

If a person meets these conditions, they may purchase a residential property (a year-round dwelling) without special permission.

Special rules for EU citizens

Special rules apply to EU citizens.
As an EU citizen (or a citizen of Switzerland or a family member of one of these), it is often possible to purchase property in Denmark without having previously lived in the country if the purchase is connected to the intention to work (wage earner) in Denmark, to establish or intend to establish a self-employed business in Denmark, to provide or receive services in Denmark, to study in Denmark, or if the person has sufficient financial means to support themselves.

EU Right of Residence and EU Registration Certificate

A condition for purchasing property is that the person meets the requirements for residence under the EU rules on the free movement of persons.
An application must be submitted to SIRI (the Danish Agency for International Recruitment and Integration) to obtain a residence document confirming the right to reside in Denmark.
The applicant must complete and submit an application for EU residence to SIRI.
After the application has been submitted, an appointment must be booked with SIRI if personal attendance is required.
The processing time at SIRI is approximately 30 days.
Different categories of EU residence exist, including residence as an employee, student, self-employed person, person with sufficient financial means, family member of an EU citizen, or as a service provider for a company.

The property must be a year-round residence and not a holiday home

To purchase property without special permission, the property must be used as the buyer’s actual residence and must be registered as a year-round dwelling.
The property cannot be a holiday home since EU citizens generally can’t purchase a holiday home in Denmark without prior written permission from the Danish Ministry of Justice.
Such permission requires that special conditions are met. I refer to the article / link: https://xn--anwaltindnemark-8kb.de/en/can-we-buy-a-vacation-home-in-denmark/

Typical procedure

In practice, the purchase agreement is often concluded before the buyer moves to Denmark.
The process may typically be as follows:

• Future plans, employment, and finances/budget are clarified.
• The possibilities of acquiring suitable real estate are explored.
• Cooperation with a Danish lawyer is established to assist with the purchase, provide guidance regarding the transaction, relocation to Denmark, and contact with authorities.
• The purchase agreement for the property is signed.
• You apply for and obtain EU residence registration with SIRI.
• After moving to Denmark, you obtain a CPR number and health insurance card and
• A bank account in Denmark is established.

There may be advantages to purchasing the property before obtaining EU residence status etc. In such cases, it is important that your lawyer ensures the purchase agreement contains the relevant conditions. This ensures that you can withdraw from the transaction if one of the conditions is not fulfilled.

Financing of the property

The financing of residential property in Denmark often consists of approximately 80% mortgage credit loan, 15% bank loan, and 5% buyer’s own contribution.
Mortgage credit institutions carry out their own independent credit assessment of both the property and the applicant/buyer.
At present, interest rates on mortgage loans are around 3–4 % for a fixed-rate loan with a term of 20–30 years. Interest rates on variable-rate loans are lower and are currently around 2.2–2.6 %.
When purchasing a house in Denmark, it is common for the buyer to obtain pre-approval from their bank, which can be a significant advantage when buying property.

Requirements after the purchase

The transfer of the property must be registered in the Danish land register (tingbogen). In connection with this, the buyer must declare that the conditions for purchasing the property are fulfilled.
The property must be used as the buyer’s year-round residence. This means that the buyer will normally have to move to Denmark and register a permanent address there.

If you have any questions regarding the above, please do not hesitate to contact me.