You are thinking of selling your home to your child, but not at the full market price. That is possible as long as the price falls within the range set out in the valuation circular (værdiansættelsescirkulæret). This is where the 15/20 % rule comes in. If the home was valued under the old rules, the price may be within plus or minus 15 % of the public property valuation. With the new valuations from the Danish Valuation Agency (Vurderingsstyrelsen), the range is plus or minus 20 %. That gives you a little extra room to find a price that feels fair and suits your situation, without getting hung up on every small movement in the market.
The rule only applies to sales within the gift tax circle (gaveafgiftskredsen) defined in the Danish Estate Tax Act (boafgiftsloven), which typically means close relatives in the direct ascending and descending line, for example between parents and children. The Danish Tax Agency (Skattestyrelsen) can still take a closer look at the sale if the price seems skewed. The aim is to make sure the agreement holds water. Here you get an overview of how the price is set and how a family sale under the 15/20 % rule unfolds. The content is for guidance only, and you will still need personal advice before making any final decisions.
What is a family sale, and who counts as close family?
A family sale of a home is a transfer between close relatives. It typically covers children, stepchildren, adopted children and grandchildren on the one side, and parents and grandparents on the other. These relationships are known as the ascending and descending line, and they may use the special rules in the valuation circular.
Spouses can also transfer property tax-free under special rules. Siblings are not covered by the same safe-harbour rule. If you sell to a brother or sister in 2026, you cannot use the same pricing framework as for children or parents. From 1 January 2027, siblings will be included in the gift tax circle in the Danish Estate Tax Act, so the rules may change for sales after that date.
An unmarried partner is only included in the gift tax circle if you have shared a home for the last two years before the sale. If you have lived together for less time, the sale must take place at market value, without using the +/- 15/20 % rule. If you are covered, you should have an adviser confirm that the rule can be used.
If ownership is split between several people, for example a child who buys half and a partner who buys the other half, only the share going to close family can follow the circular’s rules. The rest must be sold at market price, with full documentation for both parts. That protects you if the sale is checked later.
The guidelines are set out in points 2-6 of the valuation circular, in § 22 of the Danish Estate Tax Act on the gift tax circle and in Den juridiske vejledning (the tax authorities’ legal guide), including sections C.A.6.2.1 on gift tax and C.H.2.1.8.2 on transfers within the gift tax circle. The precise wording makes it clear who may use the rules, so you avoid unpleasant surprises from the Danish Tax Agency.
How to use the public valuation and the 15/20 % rule: a worked example
Start by finding the latest public property valuation for the home. Log in with MitID on Vurderingsportalen (the Danish valuation portal), or look the property up on OIS, Den Offentlige Informationsserver (the public information server). Check whether the valuation is the new type from the Danish Valuation Agency, which gives access to the 20 per cent rule, or an older valuation with a range of plus or minus 15 %. The difference determines your room for manoeuvre on the price.
Example: The public valuation is 3 million kr. You set the price for your child at 2,4 million. That is a reduction of exactly 20 % compared with the valuation. The market price may be higher, perhaps 3,5 million, but the price is still within the limits for a family sale. The benefit of about 1,1 million kr. therefore does not, as a rule, trigger gift tax. However, this requires that there are no special circumstances, as described below, and that the documentation is in place.
Market value and the public valuation are not the same thing. Market value is the price an independent buyer would realistically pay right now. The public valuation is based on models and older data and can be either above or below the market. That is why the safe-harbour rule of plus or minus 15 or 20 % exists, so that the family stays within a reasonable range without unnecessary interference from the Danish Tax Agency.
Keep all documentation. Print out the public valuation. Be aware that an estate agent’s or mortgage lender’s valuation that is significantly higher than the public valuation can be taken as evidence of special circumstances (see below). Make a short calculation showing where the price sits in relation to the rules, so you have your arguments ready if the Danish Tax Agency asks later. Also include a tax reservation clause (skatteforbehold) in the purchase agreement. This makes it possible to cancel or adjust the sale if the Danish Tax Agency later sets the valuation aside.
Special circumstances in which the Danish Tax Agency can set the price aside
Family sales within the 15/20 % rule feel safe, but you should know that the Danish Tax Agency can set the price aside if something specific suggests that it does not reflect the true market value.
This typically happens when the same home has recently been sold at a higher price in an arm’s length sale, that is, a sale between independent parties. An independent estate agent’s or valuation report that is significantly higher than the family price also carries a lot of weight. Major alterations and improvements not reflected in the latest public valuation may mean the valuation has to be adjusted before the rule can be used. A resale shortly afterwards at a markedly higher price will also trigger a check.
Timing matters a great deal. The closer these comparisons are to the date of the family sale – perhaps only a few months apart – the greater the risk that the price will be set aside. So write down all the relevant dates, including when the valuation was made, any attempts to sell, improvements carried out and the transfer itself.
The burden of proof lies with the Danish Tax Agency. The authority must document special circumstances before the price can be set differently from what you have agreed between you. If that happens, the difference between the agreed price and the market value is taxed as a gift. The rules are set out in Den juridiske vejledning, including section C.A.6.2.5 on special circumstances in transfers of real property.
If you want to minimise the risk of disputes, apply for a binding ruling (bindende svar) from the Danish Tax Agency before the sale goes through. This is especially relevant where there are recent valuations, major improvements or a planned resale shortly after the purchase. A ruling comes with a fee, but it gives you legal certainty about the price.
Step by step: the family sale from decision to registration of title
Selling a home within the family can feel like a big step the first time, but with a clear plan it goes smoothly.
First, find out which rule applies to your property: the 15 % or the 20 % rule. Check Vurderingsportalen and Den juridiske vejledning. Write down the valuation year, the type of valuation and the type of property. This is the basis for the price.
If there is any doubt about the market value, or the case is unusual, apply for a binding ruling from the Danish Tax Agency. Describe the sale precisely, accept the fee and the waiting time, and keep the decision somewhere safe for later use.
Once the groundwork is in place, the purchase agreement and the deed are drawn up. A property lawyer makes sure everything follows the rules. Have a tax reservation clause included, and attach clear documentation of how the price was set, with the public valuation and the percentage deduction. Registration of title (tinglysning) is done digitally via tinglysning.dk for a fixed fee plus a percentage of the purchase price or the mortgage deed.
The financing needs to be in order. Your child must be approved for the loan by the bank, and the bank needs to know the whole set-up, especially with a family loan or a promissory note (gældsbrev) with no interest or no repayments. Make sure you get the correct paperwork from the bank.
The practical side of the handover also needs to fall into place. Read the meters, transfer the insurance, plan the move of furniture and belongings, and agree how the costs of maintenance and future improvements will be shared.
With this step-by-step guide, you will have both the legal and the practical side under control. Keep all documentation along the way and get professional advice if in doubt, so you avoid gift tax mistakes and get a secure sale.
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