Danish Inheritance Tax: Rates, Thresholds, and How Boafgift Works
Danish Inheritance Tax: Rates, Thresholds, and How Boafgift Works
Denmark's inheritance tax — called boafgift — applies to most estates where the deceased was a Danish resident. The rates depend entirely on your relationship to the deceased, and the difference between close family and everyone else is dramatic: 15% versus an effective 36.25%.
Here's how the system works in 2026.
The Tax-Free Threshold
Every estate gets a tax-free allowance (bundfradrag) of 392,300 DKK in 2026, up from 346,000 DKK in 2025. Inheritance below this amount is not taxed at all, regardless of who receives it.
If the deceased was in an undivided estate (uskiftet bo), the threshold doubles to 784,600 DKK.
Tax Rates by Relationship
Surviving spouse or registered partner: 0% Spouses are entirely exempt from both estate tax and additional inheritance tax. This is an absolute exemption with no upper limit.
Close relatives (Category 1): 15% Children, grandchildren, parents, stepchildren, and cohabitants of more than 2 years pay 15% on the portion exceeding the 392,300 DKK threshold.
Example: A child inherits 1,000,000 DKK. Tax = 15% × (1,000,000 - 392,300) = 15% × 607,700 = 91,155 DKK. Effective rate: 9.1%.
Distant relatives and non-family (Category 2/3): 36.25% Siblings, friends, unmarried partners of less than 2 years, and distant relatives face the 15% base tax plus an additional 25% supplementary tax (tillægsboafgift). The supplementary tax is calculated on the remainder after deducting the 15% — not on the full amount.
The math: 15% + (25% × 85%) = 15% + 21.25% = 36.25% effective rate on everything above the threshold.
Example: A sibling inherits 1,000,000 DKK. Tax = 36.25% × 607,700 = 220,291 DKK. Effective rate: 22%.
Estate Income Tax: The 50% Threshold
If the estate's net assets exceed 3,563,100 DKK on the settlement date in 2026, the estate itself must pay a flat 50% income tax on all income and capital gains earned during the administration period. This is separate from the boafgift and catches estates with substantial investment returns or property sales during the settlement process.
The estate gets a monthly deduction of up to 6,400 DKK for a maximum of 12 months to offset this.
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What Foreign Heirs Need to Know
Danish inheritance tax applies to estates of Danish residents regardless of where the heirs live. If your parent was a Danish resident and you live in the UK, you still pay boafgift on your Danish inheritance.
The critical complications for international heirs:
- Double taxation treaties: Denmark has inheritance tax treaties with some countries but not all. Without a treaty, you may face taxation in both Denmark and your home country on the same inheritance.
- Foreign wills vs. Danish forced heirship: Danish law requires that children receive a minimum forced share (tvangsarv) regardless of what a foreign will says. This creates conflicts when a will drafted in another country attempts to disinherit a child.
- The probate timeline: The Probate Court calculates the boafgift after all debts are paid and assets inventoried. The Tax Agency has 3 months to review the estate's final accounts before clearing the tax.
Avoiding Probate Costs: Boudlæg
If the deceased's total assets — after deducting funeral expenses — don't exceed 55,000 DKK in 2026, the estate qualifies for boudlæg (immediate release). The entire estate goes to the person who paid for the funeral, with no court fees, no probate process, and no inheritance tax. The recipient also does not inherit any of the deceased's debts.
The Denmark Expat Death Guide includes a complete estate tax calculator, the 2026 thresholds for all estate pathways, and guidance on which professional help you actually need based on estate size.
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