What is the deduction for loans with 3 borrowers?

Aske Buemann

CEO & Co-founder

Deduction for loans with 3 or more people taking out the loan together

The deduction for loans with 3 or more borrowers is a rather unknown deduction. It applies if you have taken out a loan with a bank, for example, where there are 3 or more borrowers. That is, all persons are liable for their share of the debt.

It is one of the deductions for expenses to banks and loan providers that is not automatically reported, like the deduction for guarantee commission or the deduction for 2-year loans. We guide you through it in this article.

In this article we will go through:

  • What the deduction for 3 or more borrowers is
  • Other conditions to be aware of
  • Whether you can get deductions yourself

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What are deductions for 3 or more borrowers

When you take out a loan, e.g. a bank loan, either alone or with a partner, all interest is automatically reported to SKAT. But in cases where, for example, 3 people go to the bank together and take out a loan, this is not automatically reported to SKAT.

It is one of the few bank loans that is not reported automatically. This could be due to a lack of IT infrastructure or too few cases of this type. But in any case, on equal terms with all other bank loans, you can get a deduction for this.

The deduction itself is the interest paid. Here it is important that you simply declare your own share of the interest. For example, if you have to pay 1/3 of the loan, you pay 1/3 of the interest, and it is this interest that you can deduct.

What else should you be aware of?

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

  • You can only deduct the interest you have paid during the year
  • You must have documentation on the loan

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

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