Is it possible for an Indian citizen to buy property in Denmark, a country known for its stunning scenery and excellent standard of living?
Let’s explore the main components of Indian property purchases in Denmark.
Can an Indian Buy Property in Denmark?
Particularly for non-EU nationals, Denmark has particular regulations governing property ownership, therefore it is important to know the legal environment before making any purchases.
Denmark generally bans foreign ownership to safeguard its real estate industry.
In this case, before purchasing real estate, people of non-EU or non-EEA countries must obtain approval from the Danish Ministry of Justice.
The purpose of this legislation is to guarantee that, before the purchase of real estate, foreign buyers have an official connection to Denmark, like residency or permanent relationships.
Denmark Real Estate Investment Guide for Foreigners – CLICK HERE
Eligibility Criteria for Indian Nationals
Indian citizens who wish to purchase real estate in Denmark must fulfill specific eligibility conditions, including having the correct residency status or having the Ministry of Justice provide particular licenses.
Before becoming qualified to own real estate, the majority of non-EU nationals must have resided in Denmark for at least five years.
As an alternative, people who want to make the property their primary residence or who hold permanent residency status may apply for official approval.
Read: What Jobs Are Most Demanding in Denmark?
Steps to Buy Property in Denmark as an Indian National
1. Search Legal Advice
- Hiring a property-law-savvy Danish attorney is a must to help you through the legal process, particularly when requesting Ministry of Justice permission.
2. Get Approval
- You must apply to the Ministry of Justice for approval to purchase the property if you are not a citizen of the European Union and provide proof of your domicile or intention to make the property your primary residence.
3. Property Search
- As soon as you get authorization, you can start looking for a property.
- Danish real estate brokers, or “ejendomsmaegler,” may help in the search for a home.
4. Financing
- You need to get funding from a Danish bank or another foreign organization that will lend money to purchasers from other countries.
- Make sure you understand the rules and pricing of mortgages that apply to overseas buyers.
5. Sign the Contract
- After your selection of the property, a sales contract will be signed by you and the seller, and the property will then be registered with the Danish Land Registry.
Financial Considerations – Taxes and Costs
- Property Taxes
Annual property taxes are due from owners and are based on the location and size of the property.
- Stamp Duty
Buyers must pay a fixed registration charge of about DKK 1,750 (about ₹20,000) in addition to a stamp duty fee equal to 0.6% of the purchase price.
- Real Estate Agent Fees
Fees for using a real estate agent can vary from one to three percent of the property’s market value.
You should include these extra expenses in your overall budget when thinking about buying a home in Denmark.
Residency and Property Ownership – Do You Need to Live in Denmark?
Since to buy property in Denmark does not automatically confer residency, it might affect your eligibility for certain types of visas, thus it is crucial to know how residency and property rights are related.
Non-EU nationals need to understand that property ownership is not a requirement for Danish citizenship or residency.
Still, this can help your case when applying for a resident card or visa if you want to live in Denmark and use the property as your principal residence.
You must see the opinion of immigration specialists or lawyers for specific case law.
Bottom Line
An Indian citizen can buy property in Denmark, but there are financial and legal requirements that need to be carefully considered.
Read: Work in Denmark – Calling All Professionals (EU/EEA Welcome)
