Succession means that the ownership of a business or wealth is transferred from one generation to the next, typically from parents to children. The transfer can take place by gift, sale or inheritance, and it often has both legal and tax consequences that require professional planning.

There are also rules for transferring a personally owned business or shares to employees under certain conditions.

It is recommended to start planning in good time. A well‑planned succession makes it possible to:

• Minimise tax and duties
• Ensure stable operations and ownership transition
• Avoid conflicts within the family or the business

Early planning allows you to choose the most advantageous model, both financially and legally.

In a succession you must consider income tax, estate tax, tax on share gains and any gift tax.

• If the business is transferred as a gift or at a reduced price, the Danish Tax Agency can calculate gift tax.
• On a sale of shares or a business, tax must be paid on the gain.
• In some cases, tax succession can be obtained so that the tax is deferred until the new owner sells the business.

SkatteInform can help choose the most advantageous model under the applicable legislation.

Tax succession means that the buyer (the next generation) takes over the former owner’s tax position. This means that the tax on the gain is deferred until the buyer later sells the business.

Tax succession can be used in family transfers of both businesses and shares, and it is often a tax‑advantaged solution because it improves liquidity in connection with the transfer.

On transfers within the family, estate tax or gift tax must generally be paid, depending on whether the transfer takes place as inheritance or as a gift.

In 2025, the gift tax on transfers between parents and children is 15%. For inheritance, an estate tax allowance and corresponding rates apply.

There are special relief rules for business assets and family‑owned businesses that can significantly reduce the tax if the conditions are met.

In some cases, you can transfer family‑owned businesses to your children without immediate taxation. If the conditions for tax succession are met, the transfer can take place without immediate tax on the gain.

However, the Danish Tax Agency requires that the business is genuinely carried on as a commercial activity, that the buyer has a connection to the business and that the transfer takes place at a realistic price.

You should therefore always seek professional advice before carrying out a tax‑advantaged succession. SkatteInform can assist with this.

Yes. In certain cases, it is possible to transfer a personally owned business or shares to employees with tax succession, so that the transfer takes place without immediate taxation if the conditions are met.

Typical conditions include that the business is commercially operated, that the employee has been employed full‑time in the business for a total of three years within the last four income years before the transfer, and that the employee is full‑time employed at the time of transfer.

Succession is not only about tax. It also affects management, culture and strategy.

A clear plan ensures that both employees and business partners maintain confidence in the business. An adviser can help prepare a smooth transition plan so that operations continue without disruption.

The Danish Tax Agency accepts three different valuation models:

• DCF model: A valuation based on the business’s future cash flows.
• Multiple model: A valuation based on the business’s relative value compared to sales of comparable businesses.
• The schematic valuation method: A valuation based on capitalised excess earnings and adjusted equity.

The Danish Tax Agency recommends using the schematic valuation method for calculating estate and gift tax, and it can therefore be essential for valuation in a succession.

A correct valuation is crucial to avoid subsequent tax disputes. SkatteInform can assist with preparing a correct valuation of the business.

Succession is a complex process where small mistakes can be very costly in tax and duties.

With professional assistance you can:

• Minimise tax risks
• Choose the most advantageous model
• Safeguard the continued operation and value of the business
• Avoid conflicts within the family

At SkatteInform we help family‑owned businesses, self‑employed persons and companies plan and carry out successions so that both finances and relationships are protected as best as possible.