How inheritance tax works in Denmark
Denmark levies estate duty on inheritances. Spouses pay nothing, close family pays 15% above a DKK 392,300 allowance, and other heirs pay an extra 25% duty for a 36.25% effective rate.
Close family covers children, grandchildren, parents and long-term cohabitants. Siblings join the 15% group from 2027, but in 2026 they still face 36.25%.
Gifts to close family are tax-free up to DKK 80,600 a year per giver per recipient, with 15% above. Gifts to non-family are taxed as the recipient's ordinary income instead.
Tax rates at a glance
- Spouse rate
- 0%Exempt
- Close-family rate
- 15%
- Other heirs
- 36.25%
- Estate allowance
- DKK 392,300
- Gift allowance
- DKK 80,600
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesInvestorsHigh earnersExpatsFamily offices
Watch out for
- The gift allowance is per giver per recipient per year. Two parents can give a child double the allowance, and yearly pacing beats lump sums.
- Undivided estates double the allowance to DKK 784,600. A surviving spouse who postpones distribution keeps more sheltered.
- Family-business succession runs at 10% since late 2024 under strict conditions. Standard estate rates apply where the relief tests fail.
- Estate income during administration pays 50% dødsboskat above a high threshold. Slow administration can be an expensive choice.
Frequently asked questions
Does Denmark have inheritance tax?
Yes. Estates pay 15% for close family above DKK 392,300 and 36.25% for other heirs, with spouses fully exempt.
Are gifts taxed in Denmark?
Gifts to close family are free up to DKK 80,600 a year per giver per recipient, then 15%. Non-family gifts are taxed as ordinary income.
Do siblings get the family rate?
From 2027. In 2026 siblings still face the 36.25% rate, so timing large sibling transfers matters.