Wealth tax is an annual tax on your net wealth – that is, the value of your assets (for example home, securities, bank deposits) minus your debt. If you own a home and a share portfolio, the entire combined value minus your debt would, in principle, form the basis for a wealth tax.

In Denmark, there is no wealth tax. Wealth tax was abolished with effect from the 1997 income year. As a private individual, you therefore no longer pay an annual tax on your total net wealth.

There are a few special rules which, in international contexts, are sometimes referred to as “wealth taxes”, for example:

• Property value tax on owner-occupied homes
• Municipal land tax (property tax) on real estate
• Certain foreign wealth-related taxes if you are tax resident abroad or have cross-border assets

These charges are targeted at real estate and specific assets and are not a broad wealth tax on your entire net wealth.

This does not change the main rule: Denmark has no general wealth tax on your total wealth.

In Denmark, you are taxed on what your wealth earns and on certain specific assets – but not on the size of your total wealth as such.

Examples include:

• Income from wealth such as interest, dividends and capital gains on shares and investment funds
• Taxable gains on property when you sell real estate
• Property value tax on owner-occupied homes and municipal land tax on real estate

The tax is thus linked to income and specific assets, not to your total net wealth.

If you have significant wealth, complex investments or cross-border assets, you should be aware of:

• Danish rules on taxation of investment income and capital gains
• Danish rules on taxable gains on property and property assessment
• Foreign wealth taxes or similar charges in countries where you are tax resident or hold assets
• Double taxation agreements, which may affect how wealth-related income is taxed across borders

In practice, it is important to get an overall view of your situation, especially if you move abroad, become tax resident in another country or invest in foreign structures.

SkatteInform can assist you with:

• Clarifying your overall tax position in relation to your wealth and investments
• Advising on the taxation of investment portfolios, real estate and other assets
• Assessing whether foreign wealth taxes or similar rules affect you
• Coordinating Danish and foreign tax rules, including double taxation agreements
• Planning relocations and cross-border investments so that you avoid unnecessary double taxation