Short-term rental over the summer? Remember tax and VAT

Many Danes rent out their homes during the summer holidays - for example via Airbnb - but it's important to be aware of the applicable tax rules.

The rules for short-term rental of year-round homes aren't new in 2025, but many people forget about them when the calendar says July and the home is empty.

When is it a short-term rental?

The Tax Agency considers it a short-term rental if you rent out for less than 4 months at a time. And if you rent out the entire property for more than 12 consecutive months, it may be considered a commercial rental.

Federal deduction in 2025

You can choose the basic deduction method, where part of the income is tax-free:

DKK 33,500 in deductions if you use a platform like Airbnb
DKK 13,100 if you rent out privately without reporting

After the deduction, only 60% of the rest is taxed as capital income.

When do you have to pay VAT?

If you rent for periods of less than 30 days and have a turnover of more than DKK 50,000 per year, you may be liable for VAT - even as a private individual.

Get it right before handing over the key

It can be tempting to just create an ad and rent out - but tax and VAT can quickly make it complicated. At Buus Jensen, we're happy to help you go through your options to avoid surprises later.

Contact us today for a review of your options and obligations.