As a buyer, when you register mortgage in real estate, you must pay a fixed and variable registration fee to the state. The variable fee is equal to 1.45% of the total mortgage loan amount, whereas the fixed registration fee is equal to DKK 1,730, according to section 5a (1) of the Danish Act on Registration Fees.
How is the registration fee calculated?
When calculating the variable registration fee, the percentage fee is rounded up to the nearest amount in DKK divisible by 100, according to section 2 (1) of the Danish Act on Registration Fees. In other words, when put into context, if you as a buyer decide to take out a mortgage loan on a property equal to DKK 5,125,000, then the variable registration fee of 1.45% will amount to a total of DKK 74,312.50. This amount is rounded up to the nearest 100 – i.e., DKK 74,400. When adding on the fixed registration fee of DKK 1,730, the total registration fee owed to the state will amount to DKK 76,130.
The variable registration fee is set to be lowered to 1.25%, effective 1st January 2026.
As a buyer interested in purchasing real estate, why is it worth knowing whether the property you wish to buy is mortgaged?
As a buyer, if you decide to take out a new loan, you are permitted to reuse the registration fee paid in connection with existing mortgage deeds and owner-financed mortgage loans by registering the new mortgage deeds (loan) on mortgage-related conditions. This reuse is also permitted concerning other types of mortgage deeds, including stamp duty mortgages or “other liabilities” associated with mortgage in real estate – except for indemnity deeds, according to section 5a, subsection 1 of the Danish Act on Registration Fees.
In other words, the mortgage is attached to the property or piece of real estate, as opposed to the owner. In everyday terms, this approach is better known as registration fee exemption or stamp duty refund.
The possibility of reusing the registration fee on mortgage deeds when registering new loans is based on the ‘Principal Concept’ according to section 5a (1) of the Danish Act on Registration Fees Act. The Principal Concept states that the total tax base is based on the registered principal of the mortgage deed.
Prerequisites for registration fee exemption
In order to be eligible for stamp duty refund, according to section 5a (2) of the Danish Act on Registration Fees, the following prerequisites must be fulfilled.
- Registering the new mortgage loan must be done before filing for a mortgage discharge for the previous mortgage loan.
- Registering the new mortgage loan with the Land Registry is contingent upon the discharge of the previous mortgage loan.
- The previous mortgage loan must be discharged no later than 1 (one) year after registering the new mortgage loan with the Land Registry.
You may be able to save a lot of money
In other words, in certain cases, a lot of money can be saved if the property you wish to buy is already secured with registered loans or mortgage deeds. On the other hand, it can be costly if you must pay the registration fee for the greater part of the purchase price. As a buyer, it is worthwhile considering this issue when bidding on real estate or property. Furthermore, as a buyer, you should remember that you will also be obliged to pay a fee to register deeds when making your upcoming home purchase.
An example of stamp duty refund:
Purchase price: DKK 10,000,000
Down payment: DKK 2,000,000
The Registered mortgage loan secured on the property: DKK 6,000,000
Stamp duty refund: DKK 87,000
The Registration fee to the state: DKK 30,730. (In this example, the buyer borrows DKK 2,000,000 from the bank. The variable fee amounts to DKK 29,000. whereas the fixed fee amounts to DKK 1,730)
In the example above, the buyer achieves a stamp duty refund of DKK 87,000 because there is already a registered mortgage secured on the property for DKK 6,000,000. As a result, the buyer ends up “only” having to pay the state DKK 30,730 in registration fees.
If you wish to calculate the registration fee on your mortgage (loan) and deed, you can press here.
Note, the real estate agent is hired by seller and represents seller’s interests throughout the whole process, while the buyer’s agent exclusively represents the interests of the buyer.
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