Tourism Law in Europe

6 having effect from January 1, 2021, 20 Article 5 now concerns renting out an entire permanent residence for the purpose of holiday and leisure. In Denmark, you can only have one permanent residence and to qualify as a person’s permanent residence, it will be taken into account how much time he/she actually stays there, whether the house is registered as this person’s permanent residence in the register of social security, and more. Section one of Article 5 states that an owner or a user of a permanent residence can only rent out the entire residence for 30 days in a calendar year. However, this limit is extended to 70 days if the letting is done through an intermediary business which reports the rent paid to the tax authorities in regards to the Law on Reporting of Taxes Article 43 21 . If the owner or user rents out only parts of the residence in some periods in addition to the periods he rents out the entire resident, both lettings must be done through an intermediary. Otherwise, he will only be allowed to rent out his entire residence for 30 days. If an owner or user only rents out parts of his resident, there are no restrictions regarding the number of days. However, if the letting can be categorised as a business, he will need to apply for a license like in the case of the summerhouses. As a private person, you are exempted from paying taxes of the first 29.900 Danish kroner (2021) earned from renting out you permanent residence. 22 The same goes for the first 42.700 Danish kroner (2021) when you rent out your summerhouse. 23 However, these exemptions only apply if the letting is done through the mentioned intermediary. Otherwise, the amount is only the first 11.700 Danish kroner (2021). It is accepted that the owner or user corporates with more than one intermediary business as long as they all apply with the requirements of the Law on Reporting of Taxes. 60% of the amount exceeding these limits is subject to taxation. 20 Lov 2019-04-09 nr. 368 om ændring af lov om sommerhuse og campering m.v., lov om midlertidig regulering af boligforholdene og byggeloven (Law on Amending the Law on Summerhouses etc.). 21 Lov 2017-12-19 nr. 1536 Skatteindberetningslov (Law on Reporting of Taxes no. 1536 of December 19, 2017). 22 Lovbekendtgørelse 2019-08-08 nr. 806 om påligningen af indkomstskat til staten § 15Q (Consolidated Law on Tax Asssesment) and Lovbekendtgørelse 2019-08-07 nr. 799 om indkomstskat for personer m.v., § 20 (Consolidated Law on Tax on Personal Income). Reference to the updated tax rates can be found here: https://www.skm.dk/skattetal/satser/satser-og-beloebsgraenser-i-lovgivningen/personskatteloven/. 23 Lovbekendtgørelse 2019-08-08 nr. 806 om påligningen af indkomstskat til staten § 15O (Consolidated Law on Tax Asssesment) and Lovbekendtgørelse 2019-08-07 nr. 799 om indkomstskat for personer m.v., § 20 (Consolidated Law on Tax on Personal Income). Reference to the updated tax rates can be found here: https://www.skm.dk/skattetal/satser/satser-og-beloebsgraenser-i-lovgivningen/personskatteloven/.