Guide for Canadians Buying Property in Denmark

Denmark Places

Are you on the hunt for your very own slice of paradise in Denmark?
This Scandinavian peninsula is home to some of the most mesmerizing sights and is known for the best quality of life. So let us help simplify the process for you!

Denmark is the southernmost of the Scandinavian countries and it has been referred to as the "Gateway to Scandinavia". Owning a home is one of the greatest pleasures of life and Denmark is filled with unique opportunities for prospective buyers. 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 incredibly rewarding and hassle-free experience.

What are the Reasons for Canadians to Buy Property in Denmark?

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

  1. Ranked as one of the world's happiest countries¹, Denmark offers an exceptional quality of life to its citizens. With a thriving economy, strong educational system, universal health care, and family-friendly policies, Denmark is a very livable country.
  2. The cities of Denmark are a bustling marvel. Combining old-world European sensibilities with modern sophistication, the art and culture of Danish cities are at the forefront of fashion and architecture. As well, the Danish countryside is a sight to behold, boasting fairy-tale castles, remote fishing villages, and jaw-dropping natural beauty.
  3. Public Transportation in Denmark is inexpensive and easy to use, along with many other amenities on offer, making investing in property in Denmark a worthwhile endeavor.

What Factors you Should Keep in Mind that Impact Property Purchases in Denmark?

The property market in Denmark is heavily influenced by both national and global economic forces. The recent Brexit process, as well as the global pandemic, have had a major impact on the market. 

1.     Impacts of Brexit on Property Purchase

As an EU citizen, purchasing property in Denmark may involve a few more steps and conditions, Canadians, however, are considered non-EU citizens. Non-EU citizens must obtain proper documentation such as a visa and/or permanent residency status in order to purchase the property. In addition, it is mandatory to have permanent residency or reside in Denmark on a consistent basis for five years straight².

2.     Pandemic Impact on Property Purchase in Denmark

Before Covid-19, the Danish property market was flourishing with a 3% rise in residential house prices. However, when the pandemic hit and lockdown regulations began to be enforced in March 2020, there were noticeable drops in transactions as well as an overall 1.6% increase in prices for that same year. Looking ahead, it is expected that both demand and pricing will return to pre-Covid levels in the upcoming years due to economic recovery plans set up throughout Denmark's economy².

Can a Canadian Buy a Property in Denmark?

Yes, as mentioned earlier, Canadians can buy property in Denmark, but there are a number of conditions that you have to meet. However, to purchase real estate, Canadians have to go through the same policies & procedures as non-EU residents. The following are some absolute conditions in order to buy property in Denmark as a Canadian. 

  • You must have lived in the country for at least five years and be currently 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, there is still a way for Canadians to 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. Simply, open up a business and that can simplify the process even further, making it easier for you to purchase real estate in Denmark³. 

Once you have met these conditions, it is important to choose the location in which you want to purchase carefully, as some areas have specific restrictions on foreigners purchasing property, specifically those involving agricultural land or forests. You will be required to obtain a permit from the Danish Ministry of Justice.

Best Places to Buy Property in Denmark

With an abundance of options if you're looking to purchase real estate in Denmark now's a perfect time! Here’s a look at the best places to buy a property in Denmark.

Copenhagen

Copenhagen

The capital of Denmark, Copenhagen is one of the most desirable places to buy property in the country. From modern apartments with spectacular views of the city skyline to luxury villas on the countryside. The cost of living is high, but the quality of life and cultural attractions make it worth it.

Aarhus

Situated on the east coast of Jutland, Aarhus is the second-largest city in Denmark. It is known for its vibrant nightlife and cultural scene, as well as its stunning beaches and harbor. With plenty of housing options to choose from, ranging from modern apartments to traditional villas, Aarhus is a great place to invest in real estate.

Aarhus
Odense

Odense

Located on the island of Funen in central Denmark, Odense is a charming city full of cultural attractions, shops, restaurants, and cafes. It is also home to one of the oldest universities in Denmark, making it an ideal location for students and families. Affordable housing options are available in both urban and rural areas as well as plenty of outdoor activities to enjoy.

Property Websites:

Ready to begin your search for the perfect Danish property? Take advantage of online portals and real estate listing sites or hire a broker who specializes in international sales. Here are some great places to start:

  1. Boligsiden
  2. EDC
  3. Nybolig.dk
  4. Home.dk
  5. Rightmove Denmark (English)

Steps for Buying Property in Denmark as a Canadian

1.     Get Your Finances in Order:

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

2.     Find a Real Estate Agent:

A real estate agent can help you find the right property for your needs and budget. They will be able to provide you with information about the local real estate market and, any additional services that might be needed for the purchase.

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. Make sure all of the 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, it's it is more than likely you'll you will need to convert Canadian Dollars (CAD) into Danish Krone or DKK. It can be difficult to understand foreign exchange rates when sending money from one country to another, - especially when those rates are constantly changing. That is why comparing the rates between different providers can help you avoid any 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 fluctuation in rates could result in you spending more money than necessary for a purchase. In order to get the best exchange rate on purchasing property, do your research on exchange rates. 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 then it would be wise to wait until the rate lowers before going through with your purchase.

Options for Canadians 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 not very competitive.
  • Excessively high markups for international transfers.
  • Slow transaction process.
  • Frequent cancelled or delayed transactions.
Let MTFX handle the money transfer for your foreign property purchase

 

Why MTFX is the Perfect Option 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 your 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 rate changes in real time.
  • MTFX provides lower transaction fees and no hidden charges.

Frequently Asked Questions

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. In order to remain beyond the tourist timeframe, one must either acquire a student or work permit or else form an association with a Danish citizen as their partner.

Can a foreigner buy a house or agricultural 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.

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 it also offers free (and excellent) education options, as well as stunning natural scenery. With its welcoming atmosphere, Denmark is the perfect choice for anyone wanting to make a life-changing move.

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 land value of the property, 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.

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

Popular related articles;

 Sources

  1. World Happiness report
  2. Living in Denmark
  3. Corporate route

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