There are different types of lease in Denmark: residential tenancies, commercial tenancies, leasing and forpagtning.
The general rule is that a tenancy is not limited in time. If either of the parties wish to end the contract there are requirements as to notice and there are certain rules for landlords on grounds for termination provided for by law.
Residential tenancies are regulated by the newly revised Danish Lease Act, dated 22 March 2022. The Danish Lease Act provides tenants with a high level of protection in the contractual relationship with the landlord, notwithstanding the contents of the contract itself. If a form is used as a basis for the residential tenancy contract, it is mandatory to use a special form (Form A10), authorised by the Ministry of Housing. Be advised that the former Lease Act and the former Rent Regulation Act are now joined in the aforementioned revised version of the Danish Lease Act, and the Rent Regulation Act has been rescinded. The changes are mainly structural and the overall system as well as the existing rights and obligations for landlords and tenants according to the present act remain largely the same.
Commercial tenancies are regulated by the Commercial Rent Act, dated 9 November 2022. There is no specified form of contract. Thus, the landlord and tenanttenant have a large degree of freedom of contract, subject to some significant exceptions, eg regarding termination.
Leasing and forpagtning are generally used in commercial relations and deal with various types of use of real estate and/or the operation of a business from the premises. Leasing and forpagtning will not be elaborated on further as they are types of contract that are not regulated by the Commercial Rent Act and often cover other financial or business matters.
Leases of space within a larger unit, such as concessions within a department store, and leases of land plots are not governed by the Commercial Rent Act or any other statute. The parties are free to contract as they wish.
Last modified 13 Mar 2025
Generally, a contract is not limited in time; however the parties can agree to impose a time limit. A time limitation may be set aside if it was not sufficiently justified by the situation of the landlord at the date of the agreement.
Applicable legislation:
The Commercial Rent Act regulates all non-residential lettings.
Residential lettings are governed by the Danish Lease Act.
The Social Rent Act deals only with social housing.
Last modified 13 Mar 2025
Applicable legislation:
The Commercial Rent Act regulates all non-residential lettings.
Residential lettings are governed by the Danish Lease Act.
The Social Rent Act deals only with social housing.
Last modified 13 Mar 2025
If the contract is limited to a certain time, the tenant has no rights to continue to occupy the real estate after expiry of the lease. If the tenant wishes to continue to occupy the real estate, the parties must re-negotiate, but the landlord is not obliged to do so. However, if the tenant continues to occupy the property with the landlord’s knowledge, without the landlord has requested the tenant to vacate the lease, the lease continues on the same terms as the expired contract — but now the lease is not limited in time.
Last modified 13 Mar 2025
If the landlord and the tenant have agreed on a time-limited contract, the landlord is not obliged to act. The tenant on the other hand is obliged to leave the lease on the date originally agreed on. If the tenant continues to occupy the property with the landlord’s knowledge, without the landlord having requested the tenant to vacate the lease, the lease continues on the same terms as the expired contract — but now the lease is not limited in time.
Last modified 13 Mar 2025
The lease can at any time be terminated by landlord if tenant is in breach of contract.
If tenant is not in breach of contract the following conditions apply:
Normally, a landlord will seek a court order permitting the recovery of possession of the premises and this procedure can take up to a year, sometimes even more.
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Generally, there are no third parties with the ability to terminate the lease, but in some cases the lease can be terminated in connection with an expropriation.
Last modified 13 Mar 2025
The Commercial Rent Act does not address the issue and it is left for the parties to decide the security (freedom of contract). Usually a cash deposit for an amount equal to three to 12 months’ rent is provided.
Last modified 13 Mar 2025
The contract will normally restrict the use of the premises to a particular use.
The tenant will also be restricted by planning law to a use which has been approved by the planning authority or which corresponds to past uses of the property.
The Commercial Rent Act also regulates the tenant's use. As a principal rule, the tenant must treat the leased premises properly and a tenant is responsible for damage caused by its own improper behaviour or that of its personnel or other persons, to whom the tenant has granted access to the leased area or property.
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Most contracts limit the tenant's rights to alter or improve the premises. Significant alterations normally require the landlord's prior consent in contrary to certain customary installations, alterations and displaying of signs.
Further, most contracts include a right, for the landlord to require the alterations to be removed/re-established at expiry of the lease agreement.
In general, the tenant is obliged to return the premises in same condition as they were in when they were taken over.
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The law allows a transfer of the rights under the contract to a third party. A landlord can prevent such transfer only if it can raise serious objections to the suggested third party. The relevant provisions are non-mandatory.
The landlord can, in the contract, require that the rights are not transferred to third parties or that the rights can be transferred to a third party only when the landlord has approved the transfer.
The law does not grant the tenant the right to sublet, however, the parties can agree in the contract that the tenant has such right.
Last modified 13 Mar 2025
Generally, the parties will agree on a rent review mechanism, for example indexation, but it is possible to agree that the rent will be fixed for the entire rent period.
The Commercial Rent Act also contains detailed provisions regarding adjustment in line with market rents if either party claims this right. This will be based on a market rent review. The relevant provisions are non-mandatory.
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Most commonly by indexation.
Annually – by reference to the net price index published by the Public Administration (often including an agreed minimum and/or maximum percentage), or by a fixed percentage.
Market rent review – based on an assessment by independent experts.
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VAT at 25% will be payable only if the landlord opts to charge VAT.
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There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
Demand for payment, termination (for breach) and bailiff's court: The landlord is entitled to terminate the lease (for breach) as a consequence of late payment if the tenant has not paid the outstanding amount within three days of having received a written demand for such payment.
The landlord's demand must be made after the last due date for payment, include a detailed statement of the owed amount and must expressly specify that the lease may be terminated if the outstanding rent is not paid before the expiry of the time limit.
If the tenant does not pay within the specified period and the landlord terminates the lease, the tenant must vacate immediately. However, a landlord often grants the tenant at least one week to vacate.
If the tenant does not vacate voluntarily, the landlord can bring the case to the bailiff's court to have the tenant evicted from the premises.
Pursue guarantor: The landlord may be able to recover rent arrears and other sums due under the lease from any guarantors under the lease either by way of a contractual guarantee or under the privity of contract rules, subject to certain limitations.
Court proceedings to recover debt: The landlord can issue court proceedings against the tenant to recover rent or other sums due under the lease. The process can be expensive and will often take 1-2 years if the so-called ‘small claims process’ is not applicable (claims of no more than DKK 50,000). The tenant may not feel any impetus to pay the arrears in this period. Thus, serving a demand for payment and specifying that the lease may be terminated if the outstanding rent is not paid before the expiry of the 3-day time limit, may be more appropriate.
Insolvency proceedings: If the tenant has failed to pay rent or other sums due under the lease, the landlord may commence insolvency proceedings, provided that the tenant is considered ‘insolvent’ in accordance with the Danish Bankruptcy Act (unable to meet its liabilities as and when they fall due, unless such inability must be deemed to be only temporary). The landlord should as a main rule terminate the lease due to failed payment and demand that the tenant vacates before potentially commencing insolvency proceedings.
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A deposit will normally be required.
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The landlord is obliged to repair and maintain areas used by multiple occupiers and therefore maintenance of these areas is usually carried out by the landlord; however, the parties are free to agree otherwise including as to who pays the costs.
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Under the Commercial Rent Act, the landlord is obliged to repair and maintain the property internally as well as externally. The interior maintenance obligation is usually transferred to the tenant under the contract.
Exterior maintenance is usually carried out by the landlord.
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Telecommunications are normally paid for directly by the tenant. Other utility costs are divided between the tenants in proportion to the size of their unit in relation to the total area of the building, unless it is agreed in the contract that some or all of the utility costs are not paid separately but are contained in the rent.
Last modified 13 Mar 2025
The landlord usually pays for insuring the real estate (the building). Usually fire, storm, water damage, fungal damage and electrical faults are covered. The parties are free to agree otherwise including as to who pays the cost. The costs of the property insurance are most often included in the joint operating expenses which are divided between the tenants in proportion to the size of their unit.
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Are there any specific regulations and/or laws which apply to leases of particular categories of real estate, such as residential, industrial, offices, retail or hotels and what is their impact?
Applicable legislation:
The Commercial Rent Act regulates all non-residential lettings.
Residential lettings are governed by the Danish Lease Act.
The Social Rent Act deals only with social housing.
Last modified 13 Mar 2025