What does it mean for a home to be without a residency obligation (bopælspligt)? Read on and get up to speed.
What does 'a home without residency obligation' mean? If you own a year-round home in Denmark, under the Rent Control Act (Boligreguleringsloven) you are required to ensure the home is occupied for a minimum of 180 days a year. This means that if you live in a home without a residency obligation, where you are not registered at a national civil registration (folkeregister) address, you can still have your postal address registered there.
The moment the owner of the home registers the address with the civil register, the residency obligation kicks in, and as the owner you are then required either to live in the home yourself or to rent it out. The legislation was passed to ensure that neighbourhoods don't end up standing empty. Especially in the Copenhagen area, you'll find districts with homes that have no residency obligation, and this has resulted in areas where a number of flats stand empty — which has a negative effect on both the local environment and the local business community.
What are the advantages of a home without residency obligation
Buying a home without a residency obligation can be advantageous if, for example, you're a Dane living abroad and want a home in Denmark. It can also be an advantage if you generally want to invest in one or more properties. It gives you the option of having a place without being legally required to rent it out. It's precisely for this reason that these homes tend to be offered at a higher price — we've seen cases where homes without residency obligation sell for 10-15% more. It can also be an advantage if you want to invest in bricks and mortar without taking on tenants who wear down the property.
Finding a home without residency obligation
It can be difficult to find homes without a residency obligation, especially if you're not specifically looking at new-build project flats. If you look at Boligsiden (a Danish property portal), for instance, they don't have a search filter that supports homes without residency obligation. It's therefore not easy to find, unless you're exclusively looking for new-build projects. If you want to find a home without a residency obligation, it can be a good idea to seek help from a professional property advisor.
Rental homes without residency obligation
There are quite a few questions about rental homes without a residency obligation. This is partly because a number of property investors buy up newly built project flats that have not yet had a civil registration address registered. But what does this actually involve?
Many landlords don't want to risk a loss by selling the home with a residency obligation attached. There can be better investment opportunities in reselling the home to, for example, Danes living abroad who want a home they can stay in when they're back visiting Denmark. That's why quite a few landlords make use of flexible letting methods.
This way, a landlord can secure a better sale for a rental home without a residency obligation.
It could also be that the landlord is themselves a Dane living abroad who intends to move back to Denmark at some point, and therefore wants to be able to keep and retain it as a home without a residency obligation.
We're here to help you
If you're considering buying a home without a residency obligation but need a few questions answered along the way, you're always welcome to contact us directly on tel. 70 40 03 95. Our legal advisors are always ready to help. Bomae has brought together every phase of buying a home, so we have skilled advisors in buyer advisory services, financial advice, and legal advice alike.
We look forward to helping you.
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