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Europe and Central Asia

Housing Finance Policy

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A. Legal and Regulatory Framework
- A.1 Legal and Regulatory Framework
B. Housing Finance Subsidies
- B.1 Subsidies to Housing Finance Institutions
- B.2 Subsidies to Households
C. Taxation

A. Legal and Regulatory Framework

A.1 Legal and Regulatory Framework

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Basis of the legal system: Civil, Common, Islamic, Other? (Describe)	Civil	Civil	Civil	CIA Factbook	A.1.1
Are there specific laws that deal with mortgages?	Yes	Yes	Yes	Danish Financial Supervisory Authority	A.1.2
Registration/Transfer of titles:					A.1.3
Does the law clearly define different types of property rights?	Yes	Yes	Yes	The International Property Rights Index	A.1.3.1
Are property rights easily transferable?	Yes	Yes	Yes	IMF FSAP	A.1.3.2
Typical number of days needed for the transfer of title	4	4	4	Doing Business	A.1.3.4
Can liens be effectively enforced?	Yes	Yes	Yes	IMF FSAP	A.1.4
Number of months until lender acquires the property in case of foreclosure on a single-family residential property?	9	9		IMF FSAP	A.1.4.1
Are there legal constraints on mortgage features?	Yes	Yes	Yes	IMF FSAP	A.1.6
Interest rate caps	No	No	No	Danish Covered Bond Handbook	A.1.6.1
Loan-to-Value cap	Yes	Yes	Yes	IMF FSAP	A.1.6.2
Are there consumer rights for mortgage lending?	Yes	Yes	Yes	EU Consumer Policies	A.1.7
Are there disclosure requirements for mortgage lending?	Yes	Yes	Yes	IMF	A.1.8
Is there specialized legislation covering:					A.1.9
Issuance of covered mortgage bonds	Yes	Yes	Yes	Danish Covered Bond Handbook	A.1.9.1

B. Housing Finance Subsidies

B.1 Subsidies to Housing Finance Institutions

B.2 Subsidies to Households

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
Are there subsidies to households on housing finance?	Yes	Yes	Yes	OECD	B.2.1
Interest rate subsidies by special government funds	Not available	Not available	Not available		B.2.1.1
Buy-down of monthly/interest payments	Not available	Not available	Not available		B.2.1.2
Down-payment subsidies	Not available	Not available	Not available		B.2.1.3
Mortgage interest deductibility from income tax	Yes	Yes	Yes	OECD, Danish Customs and Tax Administration (SKAT)	B.2.1.5
Other	Yes			OECD	B.2.1.6
Reach of subsidies in 2.1.1 to 2.1.4 ?					B.2.2

C. Taxation

Variable	End of 2018	End of 2017	End of 2016	Sources	Var ID
What taxes apply to Residential Real Estate?					C.1
Tax on property (home-owners)	Yes	Yes	Yes	Danish Customs and Tax Administration (SKAT)	C.1.1
Property transaction taxes (purchase/selling)	Yes	Yes	Yes	Danish Customs and Tax Administration (SKAT)	C.1.2
Mortgage transaction taxes	Yes	Yes	Yes	Deloitte	C.1.3
Tax on mortgage interest pmts	Yes	Yes	Yes	SKAT	C.1.4
Tax on capital gains on property	Yes	Yes	Yes	Deloitte	C.1.5
Are there tax benefits on rental properties?	Yes			SKAT	C.2
Describe tax benefits (if any) from C.1.2	Tax is paid on rental income that exceeds the standard deduction. In 2018, new rules were adopted by which a landlord gets a higher standard deduction if they rent out their property through an agency than if they handled it themselves.			SKAT	C.2.1

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