If you’re an international living in Denmark, it’s most probable at some point or another you’ve asked yourself: should I keep renting, or is it time to take the leap and buy something of my own? Housing costs are high, and in a country known for high living standards and quality of life, this decision can have an impact on your long-term finances.
In this article we’ve broken down the numbers and possible scenarios, over a 10-year period, to help you visualize what’s financially smarter in the long run.
How does the real estate market work in Denmark?
Renting:
When you first arrive in a new country, your first viable option is renting. It’s easy, flexible and requires less capital upfront.
In most scenarios, you’ll be required to pay 1-3 month’s rent as a deposit, plus 1-3 months prepaid rent. This, of course, can vary depending on what you discuss with the rental company or owner.
Buying:
If you’ve decided to take the leap, be prepared with a minimum 5% down payment. Realistically, banks may require 10-20% for non-EU nationals or individuals without permanent residency.
Danish mortgage interest rates are relatively low (as of 2025: ~3–5% depending on fixed or variable rate).
You’ll pay property taxes (ejendomsværdiskat + grundskyld) and monthly homeowners’ association (Ejerforening) fees.
Buying often includes legal fees, a building inspection (tilstandsrapport), and a real estate agent’s fee.
Cost analysis over a 10 year period
Scenario A: Renting in Copenhagen
| Category | Cost (per year) | 10-Year Total |
|---|---|---|
| Monthly Rent (DKK 11,000) | DKK 132,000 | DKK 1,320,000 |
| Rent Increase (1.5%/yr) | ~DKK 110,000 added | DKK 1,430,000 (approx.) |
| Maintenance (none) | DKK 0 | DKK 0 |
| Total | DKK 1.43 million |
Scenario B: Buying a DKK 2.5 million apartment
| Category | Cost (Year 1) | 10-Year Total (approx.) |
|---|---|---|
| Down Payment (10%) | DKK 250,000 | DKK 250,000 |
| Mortgage Interest & Repayments | ~DKK 120,000/year | DKK 1.2 million |
| Taxes + Fees (annual) | DKK 25,000 | DKK 250,000 |
| HOA Fees | DKK 18,000 | DKK 180,000 |
| Maintenance | DKK 10,000/year | DKK 100,000 |
| Total Cost | ~DKK 1.98 million |
👉 Effective Cost = DKK 1.98M – 1M (Equity) = DKK 980,000
👉 Compare with Renting = DKK 1.43M
If you are successful in getting a mortgage and plan to stay in Denmark for 5+ years, buying a home will most likely save you around DKK 400,000 – 600,000 over 10 years. This, of course, is assuming property value increases moderately and there are no big shifts in the market.
Overall, renting is considered to offer more flexibility, ideal for people new in the country or ones which are unsure about long-term plans.
Why one person decided to buy
Andrei recently bought an apartment, alongside his partner.
“We felt like we were throwing money out the window with rent, paying around DKK 15,000 per month,” says Andrei “Now, with a mortgage, we pay around DKK 20,000, but we’re investing in something that grows in value. Plus, we see ourselves living in Denmark for at least 10 years, maybe even forever.”
He and his partner, both EU citizens with stable jobs in Denmark, said the process was surprisingly smooth:
“We actually signed the contract while on vacation. The whole process was online and very easy. No real challenges beyond choosing the apartment and the bank.”
So does Andrei think buying was the smart financial decision in the end? He has no doubts:
“Absolutely. I’d buy again. Even if you’re staying just a few years, it’s probably still better to buy, assuming you can get the mortgage and find the right place.”
What locals and internationals say about the subject
On a Reddit thread in the Denmark community, one EU resident shared:
“We’ve been renting a nice flat for a year, but now the landlord wants to increase the rent by 9.5%. It made us realise we’re just paying off someone else’s loan, and that got us thinking about buying.”
Others left comments with valuable insights:
- “Buying is only cheaper if you plan to stay more than 8–10 years.”
- “You can restructure your home loan in Denmark depending on the interest rate movement. It’s an incredibly consumer-friendly system.”
- “Don’t forget: if you’re an EU citizen, you can usually apply for an exemption to buy property even before living here for 5 years.”
According to Jens Peter Kildevang from LLO (The National Tenants’ Organization), many internationals are not aware of their rights when it comes to these kind of matters:
“A common misconception is that tenants have little protection in disputes with landlords. In fact, tenants in Denmark are protected by strong rental laws. However, these rules can be difficult to understand, especially for those unfamiliar with the Danish system, Jens told Last Week in Denmark.
Jen’s advice is “Be cautious when entering the rental market. Many newcomers to Danish society are unfortunately taken advantage of. Always check whether the person renting out the property has the legal right to do so, otherwise, you risk losing both your money and your place to live.”
Key factors internationals should take into account
- Residency Status: Non-EU citizens might encounter more difficulties. For example, stricter lending conditions in which a co-signer might be required or a larger deposit.
- Danish Credit History: In most cases, 6-12 months of stable income in Denmark is required before a mortgage can be approved.
- Buying Outside the Cities: Denmark’s public transport is very efficient, thus considering smaller cities and towns might be a smart move. Especially because they have lower prices, making buying there and commuting more viable.
According to LLO, most internationals in Denmark rent, and that’s perfectly normal. However, it’s important to understand your rights:
“If you’re new to the country and unfamiliar with the system, you may end up renting expensive or substandard housing, as some landlords unfortunately take advantage of this. But you don’t have to tolerate it, Jens stresses.
You can take your case to the local Rent Tribunal (Huslejenævn) without a lawyer and get retroactive rent adjustments:
“These tribunals can demand that rent be reduced retroactively, for up to 12 months from the first payment.”
LLO also notes:
“A common misconception is that tenants have little protection in disputes with landlords. In fact, tenants in Denmark are protected by strong rental laws.”
Resources you might find useful
- Huslejenævnet: The Rent Tribunal in Denmark. If you have issues with your landlord or your deposit, it might be a good idea to reach out.
- Danish Housing Market Overview: Danish Housing Portal (For getting a perspective of the rental market (prices, comparison between different zones, and conditions)
- LLO (Lejernes Landsorganisation): Offers legal guidance, contract help, and webinars for internationals in English. Over 3,000 of their members have a foreign background.
We’ve comprised an overview of what you might pay before moving into a rental:
- Deposit: 2–3 months’ rent
- Prepaid Rent: 1–3 months
- Broker’s Fee: Sometimes applicable
- Utilities: May or may not be included
What are the alternatives? Co-Ops/Social Housing
You might not be aware of these resources if you’re still new into the country, but there are alternatives to traditional rentals. Some locals chose andelsboliger (cooperative housing) or almene boliger (non-profit housing), which can prove to be more stable and affordable, compared to renting.
In the end, the most valuable advice is: don’t rush. Rent at first, get to know the neighborhoods, the system, make friends and afterwards decide what form “home” in a new country means for you.