Acquistion of all-year dwellings in Denmark
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With effect from 9 July 2018 the authority to make decisions in cases concerning applications according to the Act on acquisition of real property will be transferred to the Department of Civil Affairs. This means that applications concerning permission to acquire real property in Denmark from persons, who are not resident in Denmark, and questions hereof must be addressed to the Department of Civil Affairs from 9 July 2018.
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In the acquisition of an all-year dwelling in Denmark, the rules that apply will depend on the prospective buyer’s nationality.
Nationals of EU or EEA Member States
Nationals of a country that is a Member State of the European Union or nationals of a country that has acceded to the Agreement on the European Economic Area may acquire an all-year dwelling in Denmark without obtaining permission from the Ministry of Justice if the provisions of the Acquisition of Real Property Executive Order are met.
According to section 3 of the Acquisition Executive Order, it is a requirement that the property will serve as a necessary all-year dwelling for the acquirer or that the acquisition is a precondition for engaging in self-employed activities or providing services.
If the buyer is entitled, according to the provisions of the Acquisition Executive Order, to acquire an all-year dwelling without obtaining permission from the Ministry of Justice, the buyer must make a declaration to the Land Registration Court stating that he/she is covered by either section 1 or 2 of the Executive Order and that the purpose of the acquisition is as described in section 3. Thus, the matter must not be submitted to the Ministry of Justice.
Nationals of other countries
If the buyer is not covered by the provisions of the Acquisition Executive Order, the buyer must obtain permission from the Ministry of Justice pursuant to section 1(1) of the Acquisition of Real Property Act, if the buyer is not resident in Denmark and has not previously been so for a period of five years.
In order to consider an application for permission to acquire an all-year dwelling in Denmark, the Ministry of Justice needs the following:
- A copy of the contract of sale or the particulars of sale and information about the expected date of transfer,
- a copy of the applicant's residence permit and
- a statement to the effect that the property will be used as the applicant’s all-year dwelling.
When the Ministry of Justice has received all the information necessary for considering an application for permission to acquire an all-year dwelling, the expected case processing time is usually about four weeks.
According to the current practice of the Ministry of Justice, permission to acquire an all-year dwelling will be granted on the condition that the applicant has lawful residence in Denmark and uses the property as his/her all-year dwelling.
Order to dispose of a property
If the requirements for the granted permission to acquire real property are no longer satisfied, or if a property is acquired without the necessary per-mission having been obtained, the Ministry of Justice will impose an order on the owner under section 8 of the Acquisition of Real Property Act to dispose of the property within a time limit set by the Ministry of at least six months and not more than one year. It is not possible to extend the time limit beyond one year.
An owner who does not comply with an order to dispose of a property will be punished with a fine as prescribed by section 10(2) of the Acquisition of Real Property Act.