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Real Estate Regulation Changes in Denmark: Impact on Foreign Property Owners

Denmark's real estate legislation has historically been among the most restrictive in Europe for non-resident buyers. In 2025, the Danish authorities tightened those rules further. Foreign nationals and non-EU-domiciled companies holding or seeking to acquire Danish property now face new approval requirements. Expanded due diligence obligations. Additionally, stricter land register procedures. all with compliance deadlines that leave little room for delay.

Denmark's property legislation introduced revised acquisition controls for foreign buyers, effective from January 1, 2025. Non-EU nationals and foreign-domiciled legal entities must now obtain prior ministerial approval before completing any property transfer. Existing owners who do not meet the updated residency and business-connection thresholds have until June 30, 2025 to either regularise their position or initiate a lawful divestment.

This alert explains what changed, which categories of owner or buyer are affected, and the five immediate actions that should be taken now to avoid enforcement risk.

What changed – the regulatory development and its effective date

Danish property legislation governing foreign ownership has been amended to extend pre-approval obligations. Previously, the acquisition controls applied primarily to residential holiday properties. Under the revised rules, the approval requirement now covers a broader range of property categories.

The changes cover residential property held outside an active business context, agricultural and forestry land, coastal zone properties, and any asset where the buyer lacks a demonstrable economic connection to Denmark. The effective date is January 1, 2025. Transactions concluded after that date without the required approval are treated as void under Danish property law.

The amendments also introduce enhanced conveyancing obligations. Practitioners must now verify the buyer's eligibility status at two points: prior to signing and again prior to registration in the tingbog (Danish land register). Any gap between eligibility at contract stage and eligibility at registration triggers automatic referral to the Ministry of Justice.

In addition, the rules governing the skøde (title deed) have been updated. A title deed presented for registration must now include a declaration of the acquirer's residency status and, for legal entities, the ultimate beneficial owner's nationality and domicile. Missing or inaccurate declarations delay registration and may result in administrative fines.

The Danish tax authority has been granted new information-sharing powers with the land register. This means property transfer tax obligations – already calculated at the time of conveyancing – are now cross-checked automatically against the approval status of the acquirer. For foreign investors also managing Danish tax exposure, our analysis of tax matters in Denmark addresses the intersecting obligations that arise on property transactions.

Who is affected – threshold criteria and business categories

The following categories of foreign property owner or prospective buyer are directly affected by the 2025 changes.

Non-EU, non-EEA nationals who do not hold Danish or EU residency are subject to full prior-approval requirements for any property acquisition, regardless of property type or value. There is no minimum threshold – even a single residential unit triggers the obligation.

Foreign-domiciled legal entities – including companies incorporated outside the EU/EEA – must demonstrate a genuine operational link to Denmark. A holding company established solely to hold Danish property, with no active business conducted in Denmark, does not satisfy the connection requirement. The same rule applies to trusts and non-EU collective investment vehicles.

EU and EEA nationals who have not resided in Denmark for at least five years remain subject to the historic restrictions on holiday and leisure property. The 2025 amendments did not liberalise those rules. EU nationals wishing to acquire second homes without the residency condition must still apply for individual exemption.

Existing foreign owners whose current holding no longer meets the revised criteria. for example. Because a company's beneficial ownership has changed or because a previously exempt property has been reclassified. must act before the June 30, 2025 regularisation deadline.

For a comprehensive overview of the conveyancing process, title deed requirements, and due diligence obligations in this jurisdiction, see our dedicated page on real estate legal services in Denmark.

To receive an expert assessment of your Danish property holding or acquisition in light of the 2025 changes, contact us at info@ferrazwhitmore.com.

What to do now – immediate actions and timeline

Foreign owners and prospective buyers should take the following steps without delay.

  • Audit current holdings. Identify every property asset held in Denmark – directly or through a corporate structure – and confirm whether the holding still qualifies under the revised criteria. Pay particular attention to any change in the beneficial ownership chain since January 1, 2025.
  • Verify land register entries. Obtain a current extract from the land register for each property. Confirm that the title deed on file reflects the current ownership structure. Discrepancies between the registered owner and the actual beneficial owner must be corrected before June 30, 2025.
  • Obtain ministerial approval before any new transaction. No binding purchase contract should be signed, and no notarial deed equivalent should be executed, before written approval from the Ministry of Justice is in hand. Applications must include certified translations of all corporate documents and a declaration of the ultimate beneficial owner.
  • Review the ownership structure for business-connection compliance. If your Danish property is held through a foreign holding entity, assess whether that entity demonstrates sufficient operational presence in Denmark. If it does not, legal advice on restructuring should be sought immediately – restructuring after an enforcement notice is significantly more constrained than proactive reorganisation.
  • Engage a lawyer in Denmark with cross-border experience. The interaction between property law, corporate law, and tax legislation in this context is multi-layered. A lawyer in Denmark who advises only on local conveyancing may miss the international dimension. Engaging a law firm in Denmark – or one with established Danish practice – that handles cross-border property transactions reduces the risk of procedural error at a stage where errors carry divestment consequences.

Parallel developments in neighbouring jurisdictions are also worth monitoring. Our alert on real estate regulation changes in Portugal illustrates how EU member states are using investment legislation to reset the conditions under which non-EU buyers may hold property.

About Ferraz & Whitmore

Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our real estate practice supports foreign investors, private buyers, and corporate clients managing property assets across European markets, including Denmark. We advise on property transfer procedures, land register compliance, title deed due diligence, and the corporate structuring of cross-border property holdings. The firm combines Portuguese civil law expertise with English common law tradition – an advantage when advising clients whose ownership chains span multiple legal systems. Our attorneys have experience before Danish regulatory authorities and in cross-border property transactions involving both EU and non-EU acquirers. As an international law firm in Denmark and across Scandinavia, we work with in-house legal teams and private clients who need counsel that covers the full picture: property law. Tax exposure. Additionally, corporate structure in one integrated advisory. To discuss your position under the 2025 Danish rules, contact us at info@ferrazwhitmore.com.

Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.