Buying Property in Denmark: A Guide for Canadians

Are you hunting for your slice of paradise in Denmark? This Scandinavian peninsula is home to some of the most mesmerizing sights and is known for its high quality of life. So, let us simplify the process for you!

Denmark is the southernmost of the Scandinavian countries and is called the "Gateway to Scandinavia." Homeownership is one of life's greatest pleasures, and Denmark offers prospective buyers unique opportunities. It is a world-class cosmopolitan nation, and Danes enjoy a rich cultural heritage, stunning landscapes, vibrant cities, fresh, clean air, and friendly communities. Now is the perfect time to consider buying property in Denmark, and this guide offers tips that will make buying property in Denmark an enriching and hassle-free experience.

Why do Canadians buy property in Denmark?

Denmark is a perfect place to invest in property. This beautiful country presents many benefits and appealing features that make it an ideal destination. Here are several reasons why buying property in Denmark is worth your while:

1. Ranked as one of the world's happiest countries, Denmark offers its citizens an exceptional quality of life. Denmark is a very livable country with a thriving economy, robust educational system, universal health care, and family-friendly policies. 
    
2. Denmark's cities are bustling marvels. Combining old-world European sensibilities with modern sophistication, their art and culture are at the forefront of fashion and architecture. The Danish countryside is also a sight, boasting fairy-tale castles, remote fishing villages, and jaw-dropping natural beauty. 
    
3. Public Transportation in Denmark is inexpensive and easy to use, and many other amenities are on offer, making investing in property in Denmark a worthwhile endeavour.

Can a Canadian buy a property in Denmark?

Yes, as mentioned earlier, Canadians can buy property in Denmark, but there are several conditions that you have to meet. To purchase real estate, Canadians must follow the same policies and procedures as non-EU residents. The following are some absolute conditions to buy property in Denmark as a Canadian. 

• You must have lived in the country for at least five years and be employed or maintain a valid residence or business permit. This applies to both non-EU residents and Canadians.  
• Moreover, authorization from the Danish Department of Civil Affairs is necessary. 

If you do not meet the above criteria, Canadians can still buy property in Denmark.

Corporate route for Canadians to buy property in Denmark

For Canadians, there is another to meet the criteria for purchasing property in Denmark, such as forming your own local company, which can buy a property for you. Starting a business can simplify the process, making purchasing real estate in Denmark easier. 

Once you have met these conditions, choosing the location where you want to purchase is essential. Some areas have specific restrictions on foreigners buying property, specifically those involving agricultural land or forests. You must obtain a permit from the Danish Ministry of Justice.

Best places to buy property in Denmark

With many options, now's the perfect time to purchase real estate in Denmark! Here’s a look at the best places to buy a property in Denmark.

Copenhagen: The capital city offers diverse neighbourhoods, cultural attractions, and a solid rental market, making it a prime location for property investment.

Aarhus: Denmark's second-largest city, Aarhus, is known for its vibrant culture, educational institutions, and waterfront developments, making it an attractive option for residential and commercial properties.

Odense: Located on the island of Funen, Odense is a charming city with historical significance and a growing economy. It is an ideal choice for property buyers seeking a mix of tradition and modernity.

Aalborg: With a dynamic waterfront, bustling city center, and thriving tech industry, Aalborg offers excellent investment opportunities in residential and commercial real estate sectors.

Frederiksberg: Situated as an enclave within Copenhagen, Frederiksberg is known for its upscale neighbourhoods, green spaces, and proximity to the capital's amenities. This makes it a sought-after location for property buyers looking for a luxurious lifestyle.

These cities offer a combination of economic stability, cultural vibrancy, and growth potential, making them some of the best places to consider when buying property in Denmark.

Steps for buying property in Denmark as a Canadian

Following are the steps for buying property in Denmark as a Canadian; 

Step 1 - Get your finances in order

Before you start looking for a real estate agent, make sure that your finances are in order. You must prove that you have the financial means to purchase a property in Denmark. This can include proof of income, bank statements, and more.

Step 2 - Find a real estate agent

A real estate agent can help you find the right property for your needs and budget. They can provide information about the local real estate market and any additional services needed for the purchase.

Step 3 - Close the deal

Once you have found a real estate agent and a suitable property, it is time to close the deal. This will involve signing contracts, transferring funds, and more. Ensure all necessary paperwork is completed before closing the deal; doing this will ensure a smooth transaction.

How to pay for property purchases in Denmark as a Canadian?

When buying a property in Denmark, you'll likely need to convert Canadian Dollars (CAD) into Danish Krone or DKK. Foreign exchange rates can be challenging to understand when sending money from one country to another, particularly when those rates constantly change. Comparing the rates between different providers can help you avoid hidden fees and get the best possible rate for purchasing property in Denmark as a foreigner. 

How to get the best exchange rate when buying property in Denmark as a Canadian?

When buying property, it is essential to consider the exchange rate between two countries. A rate fluctuation could result in spending more money than necessary on a purchase. Research exchange rates to get the best exchange rate on purchasing property. By doing so, you can save yourself a lot of money down the line. For example, if the DKK/CAD exchange rate is high when you plan on buying a property in Denmark, it would be wise to wait until the rate lowers before purchasing.

How to transfer funds to Denmark?

There are several ways that you can pay for property purchases overseas. Here are some of the most popular methods:

1. Bank transfers - Banks are the traditional way to send money, but it is important to note that they may charge high fees for international transfers.
2. Money transfer services - This is the most updated and used method to send money securely and efficiently. Currency exchange specialists like MTFX can help you get the best exchange rate and minimize any fees associated with the transfer.

Can I use my bank to convert Canadian dollars to Danish krone?

Yes, you can use a bank to convert CAD into DKK. However, there are several reasons you should avoid using a bank for currency conversion and money transfer when buying property in Denmark, such as:

• The exchange rates they offer are often inflated.
• Excessively high markups for international transfers.
• Slow transaction process.
• Frequent cancelled or delayed transactions.

Why is MTFX the perfect choice for international money transfers?

• MTFX is a currency exchange specialist offering more competitive and cost-effective exchange rates.
• MTFX saves you up to 2-5% on currency conversions.
• MTFX offers speedy transactions taking only 24-48 hours to complete.
• MTFX provides up-to-date market analysis.
• MTFX provides exceptional customer service, informing you of real-time rate changes.
• MTFX provides lower transaction fees and no hidden charges.

Open an account today to enjoy simple, secure, and cost-effective international payments to buy property in Denmark with MTFX.

FAQs

1. Can a Canadian retire in Denmark?

If you dream of spending your retirement in Denmark, simply a tourist visa will not suffice. If your stay is planned to exceed three months within the country's borders, then it is essential that an extended-term visa be acquired. Denmark does not offer any specialized retiree visas. To remain beyond the tourist timeframe, you must either acquire a student or work permit or form an association with a Danish citizen as their partner.

2. Can a Canadian buy a house or land in Denmark?

In order to purchase real estate or agricultural land in Denmark, you'll need to fulfill one of two conditions: either have a permanent residence in Denmark or have lived there for at least five consecutive years. You must then obtain permission from the Danish Ministry of Justice.

3. Is moving to Denmark a good idea?

Moving to Denmark can be an exciting and rewarding experience. Not only does the country boast a world-class healthcare system, but it also offers free and excellent education options and stunning natural scenery. With its welcoming atmosphere, Denmark is the perfect choice for anyone wanting to make a life-changing move.

4. What are the taxes on property in Denmark?

Ownership of real estate in Denmark comes with a responsibility to pay both property tax to the municipality, which is based on the property's land value, and property value tax, which is based on the full property value (land and building) according to public assessment. This must be done through your tax assessment notice.