Denmark Tax Agency Clarifies Tax Rules for Commercial Businesses Engaged in Short-Term Property Rentals

The Danish Customs and Tax Administration June 2 posted National Tax Court Decision No. SKM2025.301.LSR, clarifying the tax rules for commercial businesses engaged in short-term property rentals. The taxpayer, the owner of a sole proprietorship, rented out property and parts thereof for short periods of time. The taxpayer declared a loss from the business and claimed various deductions, including for cleaning and maintenance, arguing that he operated a commercial rental business. The Tax Agency denied the taxpayer’s claimed deductions and held that the taxpayer wasn’t operating a commercial rental business. Upon review, the National Tax Court found that the rental ...