Deduction for home improvement services and household services for holiday homes

If you have not been subject to property value tax on your holiday home, for instance because your holiday home:

• only was rented out for business purposes
• was under construction/demolition
• was uninhabitable
• or was owned by a cooperative housing association,

your holiday home is not covered by the scheme. Most allotment houses are not subject to property value tax and therefore not covered by the scheme.

If you are two or more people who collectively own a holiday home - for instance, brothers and sisters who have inherited a holiday home, or friends who have bought a house together - you are each entitled to a tax deduction if you meet the general terms.

If you have a holiday home in another EU country, the business carrying out the services must be registered for VAT.

If your holiday home is outside the EU, the business must be registered for VAT or registered for other turnover taxes or income taxes for the services in question.

In both cases, it applies that the services must be carried out by a person who had turned 18 at the end of the income year and who was subject to full tax liability in the country in question.

It is a condition that the country in which the holiday home is located exchanges information with the Danish authorities based on a double taxation agreement or international agreements or conventions.

If you are subject to limited tax liability in relation to a holiday home in Denmark, you are entitled to the same tax deduction for home improvement services and household services as an individual who is subject to full tax liability.

However, there are two exceptions:

• Only the owner of the holiday home is entitled to a deduction. The owner’s spouse is not entitled to a deduction if he or she is not a joint owner.
• The same documentation requirements exist as for individuals who have chosen to be taxed according to the cross-border worker rules.

If you have a holiday home outside Denmark, you are only entitled to a deduction if you choose to be taxed according to the cross-border worker rules.

You can claim the tax deduction for home improvement services and household services in two ways:

1. Log on to E-tax (TastSelv)
   Select 'Ret årsopgørelse/oplysningsskema' (Change your tax assessment notice or tax return).
   Enter the total labour costs entitling the buyer to claim a deduction for home improvement services in box 460 or for household services in box 461.
2. Fill in box 460 or 461 of the form “Tax return for taxpayers with limited tax liability" and send it to us.

Tax return for taxpayers with limited liability