Deductions for the purchase and sale of a home

Aske Buemann

CEO & Co-founder

Deductions for the purchase and sale of a home

If you are one of the hundreds of thousands of Danes who have bought or sold a home in the last few years, there are several deductions to be aware of. There are many fees and expenses that you pay in connection with. that are not automatically reported to SKAT.

These are some of the deductions for expenses to banks and loan providers that are not automatically reported, such as the deduction for 2-year loans. We'll guide you through that in this article.

In this article we will go through:

  • What deductions there are when buying and selling a home
  • Other conditions to be aware of

Specific deductions for the purchase and sale of a home

When you buy or sell a property, there are several types of fees and costs you can deduct. Many of them you even have to report to SKAT yourself to get the deduction. These are the ones we will go through here:

  1. Differential interest: when you sell a home, you typically have to reschedule or redeem your mortgage. In this context, you may have to pay so-called 'difference interest'. This is a kind of compensation to the mortgage company because you redeem the loan early and they have to continue paying interest to the bondholders for a period of time.
  2. Mortgage guarantee: when you buy a home and take out a mortgage, you can choose to buy a so-called 'mortgage guarantee'. A mortgage guarantee is a type of insurance you can take out to protect yourself if you cannot pay back the loan on time.
  3. Mortgage insurance: when you buy a home and take out a mortgage, you can choose to buy what is called 'mortgage insurance'. It protects you and your family in the event of one of you passing away or becoming disabled. It then covers the balance of the loan for the deceased/disabled person.
  4. Guarantee fee: A guarantee fee is a type of fee that a bank charges, for example, in connection with the rescheduling of a mortgage. This is because while the new loan is being registered with the state, known as a deed of title, the bank provides a guarantee for the loan. You can read much more about this deduction (including see an example) on our article here.
  5. Interest on the reimbursement statement: when you take over a property, a statement is made of the expenses incurred by the seller but relating to the buyer and vice versa. In some cases, the buyer can take over the seller's loan and must therefore enter the interest paid by the seller on the reimbursement statement. You can read much more about this deduction on our article here.

All the above costs and fees will appear on the fee statements sent to you by the bank, mortgage company or reimbursement statement. the housing transaction.

The deduction itself is the fees you have paid. But there are some elements to be aware of, which we go through below.

What else should you be aware of?

There are some other elements to be aware of with this deduction:

  • You must have documentation of the loan and the fees through, for example, a loan document
  • To get a deduction for guarantee commission, you must not have made a so-called 'fixed rate agreement'

See if you can get a tax refund in just 15 minutes.

In TaxHelper, we help you find the deductions you're entitled to. You answer a few simple questions that take just 15 minutes to complete.

Then we report the deductions, and you get an extra DKK 2,704 back in tax. At the same time, you only pay if you get a tax saving.

Start here

start today