Business expenses in Denmark: what you can deduct in 2026

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You run a Danish sole proprietorship or an ApS, and you want every legitimate cost to reduce your tax. The rules are logical, but Skattestyrelsen (the Danish Tax Agency) is strict on anything with a private side. After reading, you will know what you can deduct in 2026, how depreciation works and where freelancers usually slip.

Denmark business expenses in 2026: the key figures

What changed for 2026

• Higher small-asset limit. DKK 36,000 per asset, up from DKK 34,400 in 2025, per Skattestyrelsen. The balance limit for mixed-use assets rose to DKK 16,900, from DKK 16,200.
• New mileage rates. DKK 3.94 per km up to 20,000 km and DKK 2.28 above, from DKK 3.81 and DKK 2.23 in 2025.
• Digital bookkeeping for sole traders. From 1 January 2026, sole traders with net turnover above DKK 300,000 in two consecutive years must use digital bookkeeping, per Erhvervsstyrelsen.
• Know-how and patents. Costs incurred from 2025 can no longer be deducted at once; they are written off at up to 1/7 a year.

Is this guide for you?

Read on if you…

• are a self-employed freelancer or consultant taxed in Denmark;
• own an ApS and want to know what the company can deduct;
• work from home or use your own car or phone for business.

Probably not your case if you…

• are a salaried employee; employee deductions are in personal tax deductions and benefits of Denmark;
• run a business abroad with no Danish tax liability.

What counts as a deductible business expense in Denmark?

The core rule sits in § 6(1)(a) of the State Tax Act (statsskatteloven). Expenses used in the year to acquire, secure and maintain income are deductible. Lawyers call them operating costs (driftsomkostninger).

In plain words: day-to-day costs that keep the business running are deductible. Costs that build something lasting, such as a machine or a customer base, are capital costs. They are depreciated over time or not deductible at all.

Skattestyrelsen's guidance lists typical deductible costs:

• goods for resale and equipment;
• accountant and lawyer fees;
• phone, internet and software;
• rent of business premises and utilities;
• repairs and business insurance;
• advertising, which is fully deductible.

Private costs are never deductible. Mixed-use costs are deductible only for the business share.

Start-up costs

One-off costs of starting the business, such as setup accounting or market research, are not deductible. Operating costs paid within 6 months before the business starts may be deductible, assessed case by case.

Research and development

Under § 8 B of the Tax Assessment Act (ligningsloven), R&D costs linked to your business can be deducted in full in the year paid, or spread over that year and the next 4. Section 8 B(4) also lets you deduct more than 100% of qualifying costs, so check the current percentage before you file.

How does depreciation work in Denmark?

Depreciation follows the Depreciation Act (afskrivningsloven), which is treated as exhaustive: if it does not allow a write-off, there usually is none.

Small assets

An asset costing up to DKK 36,000 in 2026 can be deducted in full in the year you buy it. If you are VAT-registered, the price is counted excluding VAT; if not, including VAT. Items that belong together, such as a computer and its printer, count as one asset.

Assets also used privately are depreciated one by one. Once such an asset's balance falls below DKK 16,900, you can write off its business share at once.

The 25% pool

Larger equipment goes into one running balance (saldo). Each year you may deduct up to 25% of it. You can deduct less in a weak year and keep the balance for later. Sale proceeds reduce the pool.

For 2025 and 2026, brand-new electric or battery-powered assets can use a 108% depreciation base. Cars, vans, trucks, ships and software are excluded.

Buildings, goodwill and rights

Under § 17 of the Depreciation Act, as explained in Den juridiske vejledning, buildings and installations acquired from 1 January 2023 are written off at up to 3% a year. Those acquired earlier keep up to 4%. Short-lived buildings can use a higher rate.

Goodwill and acquired rights such as patents, know-how, trademarks and licences go at up to 1/7 a year under § 40. Rights protected for less than 7 years are spread over the protection period.

Which mixed private and business costs are deductible?

This is where Danish freelancers meet the tax agency most often.

Home office

A room in your home counts only if it cannot be used privately. Here's the catch: a room set up as an office is usually seen as privately usable, so its rent and heating are generally not deductible.

Office furniture is a different story. Desks and cabinets are deductible in proportion to documented business use, for example 50% if you use them half for business.

Car

You have two ways to deduct a private car used for business:

1. Actual costs. Deduct the business share of running costs and depreciation, backed by a log.
2. Mileage rates. Use the Tax Council's 2026 rates: DKK 3.94 per km up to 20,000 km a year, then DKK 2.28. You need a mileage log showing business and private trips.

If the car is placed in the business tax scheme (VSO), all costs are deductible, but private use is taxed as a company car benefit.

Phone and internet

You can deduct a company phone, then add DKK 3,500 to your 2026 business result as the private-use value (field 462). Company internet is fully deductible without addition if you can reach the business network from home; otherwise the same DKK 3,500 applies. Phone and internet together are taxed only once.

Entertainment, meals and gifts

Ligningsloven § 8(4) limits entertainment (repræsentation) to 25% of the cost. That covers client meals, drinks, gifts, anniversaries and outings. Note on the receipt who attended and why. VAT on food and accommodation follows its own special rules.

Does the business structure change what you can deduct?

The deduction rules are the same. What changes is how much each deduction saves.

A sole trader usually saves more per krone, because personal rates are higher; the Ministry of Taxation's 2026 table shows the bands. An ApS saves 22% now, and the owner pays share-income tax only on what is paid out. Where a company is managed decides where its profit, and so its deduction, is taxed. Compare structures in legal forms of business in Denmark and corporate income taxes in Denmark, or get help through Heavnn business setup.

How do you document expenses?

1. Store vouchers digitally. Purchase and sales vouchers must be kept digitally, and sales invoices in the version you issued.
2. Use a digital system if required. Companies filing annual reports, and sole traders above DKK 300,000 turnover in two consecutive years, must bookkeep digitally.
3. Write the purpose on meals, gifts and travel: who, why, what.
4. Keep a mileage log if you use the per-km rates.
5. Keep records for 5 years from the end of the financial year they relate to.

Common mistakes (and what they cost)

• Deducting a home office room → the deduction is usually reversed, with back tax and interest, because the room can be used privately.
• Deducting 100% of client dinners → only 25% is allowed, so the agency adds back 75% of the cost.
• Treating a DKK 40,000 asset as a small asset → it belongs in the 25% pool, so 75% of the deduction moves to later years and back tax is due.
• No mileage log → per-km deductions are refused, even for genuine trips.
• Missing vouchers or digital records → expenses are disallowed, and a fine under the Tax Control Act is possible for not keeping records.

Frequently asked questions

What business expenses are deductible in Denmark?

Costs you incur to run the business and earn its income: goods, equipment, accountant and lawyer fees, phone and internet, premises rent, utilities, repairs, insurance and advertising. Capital assets are depreciated instead. Entertainment is only 25% deductible, private costs never are, and mixed-use costs only for the business share.

Can I deduct my home office in Denmark?

Rarely. A room in your home is deductible only if it cannot be used privately, and Skattestyrelsen usually considers a home office privately usable. Office furniture is different: desks and cabinets are deductible in proportion to the business use you can document. Many freelancers deduct a co-working desk instead, which is simpler.

How much can I write off immediately in Denmark?

In 2026, assets costing up to DKK 36,000 each can be deducted in full in the year of purchase, excluding VAT if you are VAT-registered. Items that belong together count as one asset. Anything above goes into a pool depreciated at up to 25% a year on a declining balance.

Are business meals deductible in Denmark?

Partly. Meals with clients count as entertainment, so ligningsloven § 8(4) allows only 25% of the cost. The same applies to drinks, gifts and outings. Keep the receipt and note who attended and the business purpose. VAT on food and accommodation has its own special rules.

What is the 2026 mileage rate in Denmark?

For business trips in your own car, the Tax Council's 2026 rates are DKK 3.94 per km for the first 20,000 km a year and DKK 2.28 per km above that. You need a mileage log. Alternatively, you can deduct the business share of the car's actual costs.

How long must I keep business records in Denmark?

Five years from the end of the financial year they relate to. Purchase and sales vouchers must be stored digitally. From 2026, sole traders with turnover above DKK 300,000 in two consecutive years must also use digital bookkeeping. Missing records can lead to estimated assessments and fines.

Related guides

• Legal forms of business in Denmark
• Corporate income tax in Denmark
• Personal deductions and benefits in Denmark
• Denmark VAT and other specific taxes
• Denmark tax landscape overview
• Business expenses in Malta
• Business expenses in Austria
• All country tax guides

Sources

• Deduction for business expenses – Skattestyrelsen
• Tax rates 2026 (transport) – Skattestyrelsen
• Afskrivningsmetoder, bygninger og installationer – Den juridiske vejledning, Skattestyrelsen
• Afskrivning på goodwill og andre immaterielle rettigheder – Den juridiske vejledning, Skattestyrelsen
• Ligningsloven, consolidated act, §§ 8(4) and 8 B – Retsinformation
• Marginalskatteprocenter siden 1993 – Skatteministeriet
• Vejledning om bogføringsloven – Erhvervsstyrelsen
• Tax on own business – Skattestyrelsen

This guide is general information, not personalised tax advice. See how we research and review.