If you are taxed in Denmark
Denmark taxes you on your worldwide income and property, including a house in Mallorca. The treaty decides what happens to the Spanish tax you already paid.
Credit, not exemption
Denmark and Spain have had a tax treaty again since 1 January 2024, after twenty years without one. It follows the credit method: the Spanish property is declared in Denmark, and the tax you paid in Spain is credited against the Danish bill — you do not pay twice, but you do end up paying at the higher of the two levels. The old rule, where Danes with Spanish property were caught between two systems, is over; what replaced it still has to be filed correctly in both countries.
What you actually declare
While you own it
- Danish property value tax (ejendomsværdiskat) applies to a home in Spain, calculated from a Danish-assessed value for the foreign property.
- Tax paid in Spain — the imputed income tax, and IBI in the relevant form — is credited.
- The Spanish wealth tax is a separate matter and is not covered by the property value tax.
If you rent it out
- Rental income from Mallorca is taxable income in Denmark.
- The Spanish tax on the same income is credited.
- Keep the Spanish quarterly filings — Skattestyrelsen will ask for them.
- If the home is let commercially through a licence, both countries may treat it as business income, which changes the deductions.
When you sell
- The gain is taxable in Denmark if the property is not covered by the summer-house rule or parcelhusreglen — which most Spanish second homes are not.
- The 19 % Spanish capital gains tax is credited.
- The 3 % retention at completion is an advance, not a final tax: reclaim it in Spain, then reconcile in Denmark.
Five questions for your own adviser
Am I covered by the summer-house rule on this property, or not?
How is the Danish property value tax assessed for a house in Mallorca?
Does co-ownership through a Spanish S.L. change my Danish position?
Which Spanish filings does Skattestyrelsen want to see, and when?
If I let the house out, is it income from property or from a business?