Expatify

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Buying Real Estate in Denmark

Denmark enjoys a high standard of living and with Denmark real estate prices cheaper than most of the European Union. Utility costs tend to be expensive, such as electricity. Real estate in Copenhagen, the major city, has become popular, particularly near the harbor and docks. The rest of Denmark is more rural. Most of the population is English-speaking, especially among young and/or educated crowds. You will probably need to work with both lawyers and real estate agents to purchase property in Denmark. There are also restrictions on the foreign ownership of property that you must overcome.

Attorneys and Real Estate Agents

You should hire a lawyer, for the purpose of checking through the sales agreement, running checks through the local council, reading survey reports and completing the contracts.

You will most likely end up dealing with a Real Estate Agent. They will draft a purchase agreement.

Rules, Regulations and Restrictions

There are some restrictions on the foreign ownership of property in Denmark.

To buy real estate in Denmark as a foreigner, you must obtain permission from the Minister of Justice. You can buy real estate if you already have a permanent address in Denmark, or have had that for at least five years earlier. You may buy real estate in Denmark if you have a work visa or run a business.

Other restrictions pertain to certain areas, particularly summer holiday homes on the coast. The laws restrict these properties to be mainly occupied by Danish people. You must prove that you either have family there or have a strong connection to a particular property to overcome this.

Click here for more details.

General Process

First, you should settle on a property, and inform its seller that you are interested. It is a good idea to get this building investigated for dampness or construction errors. Your lawyer will read the reports to make sure they are legitimate. You should probably obtain mortgage approval or a “mortgage certificate” before you sign anything.

If everything is satisfactory, then you should ask the real estate agent to draft a “purchase agreement.” Your lawyer will then run checks with the local council.

Your lawyer will also correspond with the real estate agent to negotiate the final purchase price. They will both come up with the final document contracts for you and the seller to sign. Your lawyer will notarize the documents on your behalf, and issue you the official ownership title document.

Click here for information on the Danish mortgage system.

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