Estate Duty or Inheritance Tax
The term “inheritance tax” was abolished in 1995 with the adoption of the Danish Estate Duty Act, which is why it is now called estate duty. However, the term inheritance tax is still widely used in everyday language and is therefore also used on this page. Inheritance tax and estate duty are the same.
The rules on inheritance tax and estate duty are set out in the Danish Estate Duty Act, which can be read at Retsinformation.
How Much Estate Duty Is Payable?
The amount of estate duty or inheritance tax (as it is still frequently referred to by the general public) depends on your relationship to the person from whom you inherit. Estate duty is divided into the following 3 categories:
0% estate duty – Spouses and registered partners do not pay inheritance tax / estate duty.
15% estate duty – Your children, stepchildren, adopted children, grandchildren, great-grandchildren, foster children (subject to special conditions), children-in-law, cohabiting partner, parents, separated/divorced spouse.
36.25% estate duty – Siblings, friends, grandparents, children of a cohabiting partner (unless special conditions are met).
The estate duty of 36.25% consists of estate duty of 15% and additional estate duty of 25%. It is calculated by first calculating estate duty of 15% on the value of the estate and then calculating additional estate duty of 25% on the remaining 85%. This results in a total estate duty of 36.25%.
You can obtain a free indicative calculation of the amount of estate duty.
Basic Allowance for Inheritance Tax and Estate Duty
The value of the estate must be reduced by the basic allowance before calculating estate duty. The basic allowance is adjusted annually and has a direct impact on the total inheritance tax/estate duty payable by the deceased estate.
Business or Company Included in the Deceased Estate
Special rules apply to the calculation of estate duty if the deceased leaves behind a business or unlisted shares that are to be transferred to the heirs. The probate lawyer works together with the deceased’s accountant.
A Lawyer Assists with the Final Estate Statement and Calculation of Estate Duty
A lawyer experienced in estate administration and inheritance can help the heirs gain an overview of estate administration, inheritance and the handling of the deceased’s assets and liabilities. The heirs must also decide what should happen to the assets, including whether they should be sold or distributed. The lawyer prepares the opening estate statement and final estate statement for the deceased estate, which must be submitted to the Probate Court and the Danish Tax Agency, and at the same time the lawyer calculates the estate duty payable to the state. The heirs must decide whether the estate’s assets should be sold or distributed to all or some of the heirs.
If you have questions about the calculation of inheritance tax/estate duty in a specific deceased estate, we can assist with a legal assessment.
Contact lawyer Martine Lykke Tox, tel. 31 18 66 20, or lawyer Claus Christian Hansen, tel. 31 18 66 22, both experienced probate lawyers.
Frequently Asked Questions
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Inheritance tax, now officially called estate duty, is a tax payable to the state, calculated on the inheritance received by heirs following a death. The duty depends on the amount inherited and the heir’s relationship to the deceased.
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Estate duty is payable by heirs who receive an inheritance, except spouses. The liability to pay estate duty arises upon death, even if the heirs live abroad.
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As a general rule, estate duty of 15% is payable on the inherited amount exceeding the basic allowance. The basic allowance is adjusted annually. In 2026, it is DKK 392,300. For certain heirs outside the immediate family, additional estate duty may also apply.
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Inheritance tax depends on the relationship to the deceased: spouses are exempt, close family members such as children normally pay 15%, while more distant relatives may be subject to additional estate duty on top of the ordinary estate duty.
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Estate duty must be paid as part of the administration of the deceased estate, typically in connection with the distribution of the estate and payment of inheritance, after the estate’s assets and liabilities have been accounted for.
