Expertise
Property letting
For anyone letting a room, their own home, a holiday home or a property they do not live in, whether in Denmark or abroad. We cover the methods, the 2026 allowances and the choices that bind you going forward.
Different rules apply to a room, a holiday home, your own home and an investment property.
We compare the available calculation methods before you choose, considering the whole ownership period and reporting in both countries.
How we can help
- Choice of calculation method
- Rental profit and deductions
- Business tax and capital return schemes
- Foreign rental income and relief
- Review of earlier calculations
How is renting out a room or the home you live in taxed?
If you let for at least 4 months, the standard allowance for owners is 1 1/3% of the property value, with a minimum of DKK 24,000 a year. Tenants and members of housing cooperatives instead have an allowance of two thirds of their annual rent or housing charge.
For short-term letting, the allowance is DKK 35,100 in 2026 if you let through a platform that reports to the Danish Tax Agency, and DKK 13,800 otherwise. Of the income above the allowance, 40% is tax-free.
What are the rules for letting a holiday home?
The allowance for letting a holiday home is DKK 50,200 in 2026 when you let through an agency or platform that reports the income, and DKK 13,800 when you let privately. The allowance applies per holiday home, and 40% of the income above it is tax-free. You do not pay property value tax for the periods the home is let.
If you let a holiday home abroad through an agency, you can also use the allowance, even if the income is reported without a Danish property number (BFE). Extensive letting may, however, affect whether the holiday home exemption applies when you eventually sell.
Allowance or accounts: which choice cannot be reversed?
Instead of the standard allowance, you can use the accounts method and deduct your actual costs, such as utilities, maintenance and advertising. You can switch from the allowance to the accounts method, but not back again. The choice should therefore be based on the whole period of ownership, not just the first year.
The accounts method requires documentation for every expense and an allocation between letting and your own use. It can pay off when costs are high, but if it later turns out to be the less favourable method, you are still bound by it.
How is a property you do not live in taxed?
If you let a home you own but do not live in for at least 12 months, it is treated as commercial letting. The profit is taxed as personal income, and you must keep accounts. Costs such as property taxes, maintenance, insurance, administration and interest are deductible, and a loss can be deducted.
You can choose virksomhedsordningen (the business tax scheme) or kapitalafkastordningen (the capital return scheme), which can lower your overall tax, especially with high interest costs or if profits are to be retained. Special rules apply when parents buy a home for a child or you let to other close relatives, and the rent should match the market rent.
If the property is abroad, the rental income is usually also taxed there. The calculations in the two countries must match, so that Danish relief is based on the correct income.
Frequently asked questions
How much can I earn tax-free from letting my holiday home in 2026?
If you let through an agency or platform that reports the income, the first DKK 50,200 is tax-free in 2026. If you let privately, the allowance is DKK 13,800. Of the amount above the allowance, 60% is taxed.
Do I pay tax when I let my home through a platform like Airbnb?
Yes, if the income exceeds the allowance. In 2026, the allowance is DKK 35,100 for short-term letting through a platform that reports to the Danish Tax Agency, and DKK 13,800 otherwise. Of the amount above the allowance, 40% is tax-free.
Can I switch from the accounts method back to the standard allowance?
No. Once you have chosen the accounts method for a home, you cannot later return to the standard allowance. You can, however, switch the other way. Work through both methods before you choose.
How is rent from a flat I do not live in taxed?
If you let for at least 12 months, it is commercial letting, and the profit is taxed as personal income. You can deduct running costs and interest and choose the business tax scheme or the capital return scheme. You do not pay property value tax for periods when the home is not available to you.
Do I pay Danish tax on rental income from a home abroad?
Yes. If you are fully tax liable in Denmark, the rental income must be included here, and it is usually also taxed in the country where the home is located. Denmark gives relief for the foreign tax. The holiday home allowance for letting through an agency can also be used for homes abroad.
What does this mean for you?
This page is general. Your own situation may be different, so talk to us before you act on it.