Commercial Property Denmark

BUYING COMMERCIAL PROPERTY/REAL ESTATE – DENMARK

1. Are there any restrictions on an overseas company or business buying commercial property?	Not for EU companies/businesses, but others must obtain permission from the Ministry of Justice to buy commercial property in Denmark.
2. Is land/property generally ‘registered’ so that the title/ownership is guaranteed?	Any document concerning the assignment of commercial property in Denmark must be registered in the Danish land register and filed in the court in the local jurisdictional district.
3. What are the basic requirements/procedures?	According to the Danish Registration of Property Act, an assignment of commercial property must be in writing in order to be registered.
4. On average, how long does the process take?	Approximately 6-8 weeks from the date of completion and until the final assignment document has been registered.
5. What searches are advisable?	Investigate possible tenancy agreements; land register burdens; obtain a local ‘municipal information list’. This list will state, for example, the municipal registrations regarding water and heating suppliers and environmental issues.
6. What are estimated disbursement costs?	When registering the assignment document -0.6% of the assignment value must be paid to the land registration office together with a fixed fee of Dkr 1,400.00. (190€) Legal fees: from Dkr 8.000 (1000€) - 15.000(2000€) depending on the type of property being sold.
7. What are the local and/or national tax considerations in the country of purchase?	Possible tax on the profit has to be taken into consideration when selling property.
8. What other annual local charges are obligatory?	An annual compulsory fee/ special commercial property tax.
9. Are there any other issues to consider?	Consider burdens in the land register which may affect the disposal of the property.