Are you planning to rent out your vacation home in 2026? Here are the tax rules.

With the summer season approaching, many Danes are choosing to rent out their summer homes or vacation homes, either privately or through a rental agency.

This can be a good way to cover your housing expenses, but it’s important to understand the tax rules, as the type of rental arrangement you choose directly affects your tax liability.

Two methods for calculating taxes

When renting out your vacation home, you generally have two options to choose from: the standard deduction method and the accounting method.

The vast majority of private landlords use the standard deduction method, as it is simple to apply and, in many cases, the most advantageous option. Under this method, a portion of the rental income is tax-free, as a fixed standard deduction is applied. Of the amount exceeding the deduction, only 60% is taxed—the remaining 40% is tax-free.

Standard deduction in 2026 – and the importance of the type of rental arrangement

The amount of the standard deduction depends on how you structure your rental business:

Private rental: This means that you find the tenants yourself and manage the rental—entitling you to a basic deduction of 13,800 DKK in 2026. In this case, it is your responsibility to report the rental income to the Danish Tax Agency.

Renting through an agency or digital platform—such as Airbnb, Novasol, or similar services—will result in a significantly higher standard deduction of 50,200 DKK in 2026. This high deduction is justified by the fact that the platform automatically reports rental income to the Danish Tax Agency, which provides an administrative advantage for both the owner and the authorities.

Both standard deductions have increased compared to 2025, and the choice between the two types of rental income can, in practice, result in a very significant difference in the final tax liability.

The accounting method – when is it appropriate?

As an alternative to the standard deduction method, you can choose to calculate your tax liability based on your financial records. In this case, the net profit is taxed—that is, rental income minus actual expenses for items such as utilities, cleaning, advertising, and maintenance of fixtures and equipment. This method can be advantageous for extensive rental operations with high operating expenses, but it places greater demands on documentation and ongoing bookkeeping.

Do you run a vacation rental business?

It is important to note that if you operate your vacation home as a business, different and more complex rules apply regarding deductions and tax calculations. In such cases, we recommend that you seek specific advice.

Do you need advice?

The rules governing the rental of vacation homes can have significant tax implications, and it can be difficult to determine which model is most advantageous in your specific situation. At BUUS JENSEN, we are happy to help you explore your options and ensure accurate reporting.