Holiday Home Rental Tax in Denmark: Deductions, Rules and Practical Examples

In Denmark, income from renting out your holiday home is classified as personal income (personlig indkomst). It is added to your other income and taxed at your marginal rate — typically between 37% and 52% depending on whether you hit the top-tax threshold.

However, the effective tax rate is significantly lower than it appears because of the generous deduction system. Most holiday home owners end up paying far less than the headline rate suggests.

The rules are set out in Ligningslovens § 15 O and § 15 P. For the current 2026 thresholds and rates, see SKAT's official guidance on property rental.

Denmark operates two tiers of standard deductions for holiday home rental, depending on whether your income is reported automatically by a platform.

For 2026, the deduction amounts are: 30,500 kr. for private rental (no platform reporting) and 43,800 kr. if you use a platform that reports directly to SKAT (Airbnb, Booking.com, etc.).

Above the deduction threshold, only 60% of the remaining income is taxable. This means an effective tax rate on your total rental income that's often below 20%.

For detailed legal definitions of which platforms qualify for the higher deduction, see SKAT's legal guidance note on the deduction scheme.

The 13,300 kr. difference between the two deduction levels creates a strong incentive to use a reporting platform. But what counts as 'reporting'?

A platform qualifies if it has entered into a reporting agreement with SKAT and transmits your earnings data automatically at year-end. Airbnb and Booking.com both do this. Most traditional Danish bureaus (DanCenter, Novasol) also report.

If you rent out privately — for example via Facebook Marketplace or direct bookings through your own website — you get the lower deduction but are solely responsible for reporting accurately. Mixing channels is possible: the higher deduction applies only to income earned through the reporting platform.

Let's look at two realistic scenarios to illustrate how the math works in practice.

Scenario A: You earn 65,000 kr. through Airbnb. Deduction: 43,800 kr. Taxable portion: (65,000 − 43,800) × 0.60 = 12,720 kr. At a marginal rate of 42%, your tax bill is roughly 5,340 kr. — an effective rate of just 8.2% on your gross income.

Scenario B: You earn 120,000 kr. through a mix of Airbnb (90,000 kr.) and private bookings (30,000 kr.). Airbnb income: (90,000 − 43,800) × 0.60 = 27,720 kr. taxable. Private income: (30,000 − 30,500) = negative, so 0 kr. taxable. Total tax at 42%: roughly 11,640 kr. — an effective rate of 9.7%.

Important: you cannot claim the standard deduction and itemise expenses simultaneously. It is one or the other. For most owners earning under 150,000 kr., the standard deduction is more favourable.

If your rental income is substantial — typically above 150,000–200,000 kr. — it may be worth switching to actual expense deduction (regnskabsmæssig opgørelse). Deductible costs include cleaning, maintenance, insurance, platform commissions, furnishing depreciation, and a proportional share of property taxes.

Consult an accountant before switching methods. Once you elect the expense method, you cannot revert to the standard deduction for the same property in the same tax year.

If you use a reporting platform, your income is pre-filled on your annual tax return (årsopgørelse) by March. Your job is to verify the amount is correct and ensure the deduction has been applied.

For private rental income, you must report it yourself by 1 May via TastSelv under 'Udlejning af bolig'. Failure to report is tax evasion — penalties range from 10% surcharges to criminal prosecution for repeated or deliberate under-reporting.

Keep records: booking confirmations, bank transfers, receipts for cleaning and maintenance. SKAT can request documentation up to 5 years back.

Mistake 1: Forgetting that the deduction is per property, not per person. If you co-own a holiday home with your spouse, you share one deduction — not two.

Mistake 2: Claiming both the standard deduction and specific expenses. You must choose one method. Claiming both will trigger an automatic correction (and potentially a fine).

Mistake 3: Not reporting income from platforms that don't report to SKAT. Some newer platforms (Holidu, Traum-Ferienwohnungen) may not yet have reporting agreements. You are still legally obligated to declare this income.

The single most impactful thing you can do is maximise your gross income within the day limit. Because of the flat 60% inclusion rate above the deduction, every extra krone earned is taxed the same — making high-season optimisation crucial.

Dynamic pricing, minimum-stay adjustments, and targeting high-value dates (school holidays, major events) all contribute to a higher gross figure. Doorstep's free income calculator estimates what your specific property could earn based on comparable market data.

Want to see what Doorstep charges for managing the process end-to-end? Visit our pricing page for a transparent breakdown of commissions and included services.