Taxes in Europe Database v2
Statutory Notice No 47 of 12. January 2015 (Boafgiftsloven).
(The Estate and Gift Tax Act has replaced the previous Inheritance and Gift Tax Act as of July 1, 1995. The earlier act still applies to estates, where the deceased died before July 1, 1995.)
Estates after deceased, who died on or after 1 July 1995, or recipients and donors of gifts with a value over a certain threshold.
The market value of the assets in the estate of the deceased, or the value of gift on the time the gift is received.
1. Estates with a value below DKK 272,900 (2015).
3. Fully or partially taxable payments covered by The Pensions Tax Act unless the payments stem from a scheme comparable to a Danish capital pensions scheme.
4. Payments from a pension scheme covered by The Pensions Tax Act to a separated or divorced spouse who has been installed as an irrevocable beneficiary during the administration of the common estate in relation to the separation or divorce.
5. Public service pensions, rate pensions and employers liability insurance.
6. Insurance payments insofar as the deceased has paid the premiums.
7. Property and beneficiary trusts.
8. Inheritance to public institutions and institutions etc. of public utility (after application).
In calculating the value of the estate, deduction may be made for the deceased's debts, as well as for expenses connected with the administration of the estate. There is a basic deduction of DKK 272,900 (2015).
There are also tax credits for inheritance taxes paid in other countries unless the estate or assets taxed abroad is exempted from Danish inheritance tax. The tax credit can not exceed an amount corresponding to the Danish inheritance tax on the estate.
If the deceased person resides outside Denmark, inheritance tax is only paid on real estate and accessories to the real estate in Denmark.
1. Gifts up to base amount of DKK 60,700 (2015) given to spouses.
2. Residency in the donor's home or in hospital, rest home, etc.
3. Property and beneficiary trusts in connection with capital funds and capital goods.
4. Gifts up to a base amount of DKK 21,200 (2015) given to the spouses of the donor's children and stepchildren.
5. Gifts up to a base amount of DKK 60,700 (2015) given to:
a) children, stepchildren and their children;
b) deceased child's or stepchild's surviving spouse;
d) persons who have shared a joint household with the donor for the last two years before receiving the gift or who in a continuous period of two years have shared a common household with the donor and the joint household has only been interrupted on the grounds of institutional placement;
e) foster children who have lived with the door in a continuous five years period on the condition that the residency began before the foster child was 15 years old and that at the most only one of the foster child's own parents has lived with the foster child together with the donor;
f) stepparents and grandparents.
Gift tax must be paid, if either the donor or the recipient resides in Denmark.
If both are residents outside Denmark, gift tax is only paid on real estate and connected accessories in Denmark.
Tax on estates of deceased persons:
The basic rate is 15 % of the value of the estate.
All others than the immediate family and certain other people with a closer defined relationship with the deceased pay a supplementary 25 % tax (corresponding to a total of 36.25 % on the initial value).
If a gift exceeds the aforementioned maximums, the tax rate is 15 % for the immediate family and certain other people with a closer defined relationship with the donor. For stepparents and grandparents the rate is 36.25 %.
Gifts to all other persons are generally taxed as personal income.
Via the probate courts.
Both the donor and recipient are required to submit a declaration to the local tax inspectorate.