1. Do you meet the residence requirement?

In order to purchase a summer house in Denmark, you must have been resident in this country as defined by the Danish Act on the Acquisition of Real Estate (Erhvervelsesloven) or have lived in Denmark for a total of five years pursuant to Section 1 of the Act on the Acquisition of Real Estate. When considering if you meet the residency requirement, it is not necessary for you to have lived in Denmark for five consecutive years. It is in other words possible for the period of residency to be divided up. If you don’t fulfill the residence requirement, you will need to apply for permission from the Department of Civil Affairs.

It’s important to note that the Department of Civil Affairs will only grant you permission to buy a summer house in Denmark if you have a particularly strong connection to Denmark.

Exceptions can, however, be made to this rule should you have obtained fixed/long-term residency permit in Denmark, cf. U.1998.29.H. Note that this exception is interpreted extremely restrictively in practice.

2. Have you talked to the bank?

One of the first matters you need to address is financing. It is a good idea to talk to your bank before you fall in love with a summer house. You should try to get two or three alternative bank offers. Be aware that you can borrow a maximum of up to 75% of the summer house’s value with a mortgage loan or a home loan from the bank. You’ll need to finance the remaining 25% yourself in the form of equity or savings or by taking out a bank loan. As a buyer, you yourself must, at minimum, be able to cover a down payment of five percent if you purchase a summer house.

It is important to be aware, that there can be quite a big difference in how you can finance your future summer house, depending on your citizenship. If you are neither a Danish nor an EU / EEA citizen, the down payment will be higher and typically it varies from 10-40 % of the purchase price, depending on which bank you are in a dialogue with. When the bank has approved you for the purchase, you are now ready to move ahead.

3. How expensive is the house to run?

Make sure you have an overview of what the total monthly costs are likely to amount to for the summer house you want to purchase – including any ongoing maintenance costs. Running costs can quickly mount up. For example, you’ll have to pay property tax and insurance plus the cost of any repairs and emptying a septic tank (if there is one), on top of utility expenses for electricity, water, gas and heating. And you’ll also need to meet the payments on your home loan.

4. What condition do you expect your summer house to be in?

Do you enjoy a good DIY project, or do you want your summer house to be ready to move into? If you’re thinking about buying a summer house to renovate, it can be a good idea to engage a building surveyor who can inspect the house with you and give you an estimate of what it will cost to renovate it. This will allow you to draw up a detailed renovation budget. You can then use this as a basis for negotiating the price and assessing whether you still want to renovate the house or if you’d prefer to build a whole new house on the plot instead – or look for another summer house elsewhere.

5. Furnishings

With the sale of summer houses (as opposed to the sale of year-round residences), it’s normal for all the furnishings – including garden tools, garden furniture and any other garden equipment – to come with the property. In brief, everything you’ll find at the property is generally included. Alternatively, furnishings may be negotiated for as part of the purchase. This is why it’s important to check what it says in the sales brochure. If you can’t find anything in writing, you should remember to bring this up with the real estate agent.

In special cases, the furnishings can constitute such a considerable value that the purchase sum ought to be split up in order to avoid over-borrowing in breach of mortgage legislation, just as there can, in this case, be savings to be made on the registration fees.

6. Is the price negotiable?

Is the listing price for the house correct? Remember to do your homework and check out the market in terms of what ‘the right price’ for the house should be. You can also opt to ally yourself with an independent buyer’s agent who can guide you through the buying process and help you with everything from a purchase assessment of the summer house, price negotiations, reviewing legal documents, and referring you to a good building surveyor. Remember that the buyer’s agent is there to look after your interests, while the real estate agent is there on behalf of the seller.

7. What should the immediate area be able to offer, and does the location impose any limitations in regard to the house’s use?

In addition to considering what the house and its plot should be able to offer, it’s also a good idea to check the immediate area where the house is situated.

  • Are there plans to build any new properties close to the house?
  • Is there a grocery shop located close to the house?
  • What are the public transport links like?
  • Could noise levels near the house pose a nuisance?
  • Are there any odor problems from agriculture close by?
  • Is it connected to the municipal sewers?
  • Is there a homeowners’ association with mandatory membership?
  • Is the house situated inside any building restriction lines?
  • Is the summer house situated in an urban area, a rural area, or a summer house area? It’s important to remember that a property subjected to limited use is restricted solely by virtue of its location in a particular zone.
  • If the house is located on the first row next to the sea, then it can be prudent to check whether coastal defences have been carried out.

8. Why do you want to buy a summer house?

What is the primary reason why you wish to buy a summer house? Before you start looking for a property, it’s a good idea to think about what the summer house should be able to offer and what the house will be used for.

  • Should the property be situated in scenic surroundings or are you looking for a house that’s close to the town and the coast?
  • Do you want your summer house to have a garden or a natural plot?
  • Do you plan to invite overnight guests to your summer house and if so, how many?
  • Are you buying it as an investment? And do you plan on renting out the house or is it only for your own family’s use? If you are intending to rent the house out, it’s a good idea to consider how often the house will be rented out and what it should contain – for example, the number of rooms, sauna, pool and so on. In 2021 you were eligible for a tax-free deduction of DKK 42,700 if you rented your house out through an agency. In other words, the first DKK 42,700 is tax-free. You can read more about tax deductions and the rules governing them, at Skat.dk.
  • Are you planning on the house being in the family for many years or is it a temporary investment?
  • Have you considered taking advantage of the Flex Housing Scheme (Flexboligordningen) to achieve your dream of owning a summer house?
  • Would you like a house that can be used for year-round occupancy at some point? In general, properties in summer house areas may only be used for year-round occupancy pursuant to Sections 38a and 40 of the Danish Planning Act. In special cases, however, the municipal council may grant dispensation from this rule, cf. Section 40 (2) of the Planning Act. This dispensation shall lapse, however, upon change of ownership or when the property is no longer being used as a year-round residence. In addition, special rules apply for retired persons. If you have retired and have owned your summer house for at least one year, you are personally eligible for year-round occupancy in the property, cf. Section 41 of the Planning Act. People who receive an disability pension, early retirement pension, or flexible working allowance are also covered by this rule, cf. Section 41 (2) of the Planning Act. Your spouse or co-habiting partner may also live in the house with you.

Professional buyer counseling

You should always make use of buyer counselling when purchasing a home. At Minkøbermægler.dk, we look after your interests throughout the entire buying process as your personal adviser. Contact us today to learn more about how we can help you get through your real estate purchase safely.

Note, the real estate agent is hired by the seller and represents the seller’s interests throughout the whole process, while the buyer’s agent exclusively represents the interests of the buyer.

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