The residence requirement in Copenhagen: the complete guide for property owners, investors and landlords

If you own a home in Copenhagen, the residence requirement (bopælspligt) means that you must either live in the home yourself or rent it out to a tenant who is officially registered at the address.

It is crucial to know the rules, the exceptions and the legal options, such as commuter homes or temporary absence, if you want to comply with the law and protect your investment.

By Bodhi.

How to understand the residence requirement in Copenhagen

Copenhagen is widely recognised as one of the most attractive cities in Europe to live in. Its combination of a high quality of life, solid infrastructure and economic stability has made it a magnet for both residents and investors. This popularity has, however, also put considerable pressure on the housing market. Demand for housing consistently exceeds supply, which has led politicians to introduce strict rules to make sure that available homes are actually lived in and do not stand empty or serve only as speculation.

One of the most important and often misunderstood rules in this framework is the residence requirement. It may seem like a simple concept at first, but the reality is more complex. The rule affects how you can use your property, how you rent it out and even how long it may stand empty.

For landlords and property investors, misunderstanding this rule can have serious consequences. At the same time, those who understand it well can structure the use of their property in a way that both complies with the rules and makes financial sense. This guide gives a thorough explanation of how the residence requirement works in Copenhagen and what it means for you as a property owner.

Looking for professional advice on how to maximise your rental income? Contact the BY Administration team today.

What is the residence requirement?

At its core, the residence requirement is designed to stop residential property from standing empty.

The requirement can be met in two ways. You can either live in the property yourself and make it your main residence, or you can rent it out to someone who uses it as their permanent residence. If you rent it out, the tenant must be officially registered at the address in the Danish Civil Registration System (folkeregisteret).

The intention behind the rule is rooted in broader housing policy goals. Copenhagen aims to keep neighbourhoods lively, with homes that are actually lived in, rather than treated as financial assets or short-term accommodation. Without such rules, there would be a real risk of whole areas being dominated by empty investment properties or short-term rentals, which would undermine the stability of local communities and make homes even less available.

Which properties are subject to the residence requirement?

Most residential properties in Copenhagen are subject to the residence requirement, but what matters is not only the type of property but also how it has been used.

If a home has been used as a permanent residence within the last five years, it will almost always be covered by the rule. This includes cases where someone has been officially registered at the address, or where the property has been used for more than 180 overnight stays a year.

This is especially important for investors. Even if you buy a property intending to use it differently, its previous use can decide its legal status. Many buyers assume they can freely decide how to use their property after buying it, but in Copenhagen that assumption can lead to costly mistakes.

Newly built properties sometimes follow slightly different rules. In some cases, municipalities can allow developers to sell new homes without a requirement for immediate occupation. But as soon as the property changes hands, the usual rules generally apply. That is why it is always a good idea to check a property’s status before completing a purchase.

Why the rule matters for landlords

For landlords, the residence requirement is not just a legal formality. It is crucial for how you can earn an income from your property.

If you do not live in your property, you are generally expected to rent it out to a long-term tenant. This tenant must treat the property as their main residence, which means they must be officially registered at the address. It is not enough to rent it out only to short-term guests or to keep the property available for occasional use.

This has several practical consequences. You cannot treat your apartment in Copenhagen as a flexible holiday home unless you meet specific conditions. Nor can you rely only on short-term rental platforms as your main rental strategy. Most importantly, you cannot leave the property empty for long periods without notifying the authorities and giving a valid reason.

Failing to follow these rules can lead to escalating consequences. At first, the municipality may contact you and ask for clarification. If the situation is not resolved, it can issue formal orders. In extreme cases, it has the power to assign a tenant to your property, which in effect removes your control over how it is used.

Rules on empty homes and reporting obligations

One of the most important parts of compliance is how you handle periods when your property is not lived in. Even short periods of vacancy must be handled carefully.

If your property becomes vacant, you must report it to the municipality within six weeks. This is not optional, and failing to report can in itself be treated as a breach.

The municipality understands that homes can become vacant for legitimate reasons. If, for example, you are renovating the property, trying to sell it or waiting for a tenant to move in under a signed lease, you can be granted extra time. This does, however, require communication and documentation. It is not acceptable to simply leave the property empty without explanation.

In practice, this means landlords need to be well organised. Keeping records, meeting clear deadlines and communicating proactively with the municipality are all essential parts of responsible property management in Copenhagen.

Check your property’s income potential with BY Administration’s calculator here.

Short-term rental and Airbnb restrictions

Short-term rental is one of the most popular topics among property owners, but it is also one of the most regulated areas.

In Copenhagen, you may rent out your whole home for short stays, but only within strict limits. The standard rule allows up to 30 days a year. If you use a registered rental platform that reports your income to the authorities, this limit rises to 70 days.

What many owners do not realise is that short-term rental does not count towards meeting the residence requirement. Even if your home is rented out on every permitted day, it is still not considered a permanently occupied home. This is because short-term guests do not register their address at the property.

That is why relying only on Airbnb or similar platforms is not a viable long-term strategy if your home is subject to the residence requirement. It can be used as an extra source of income, but not as a replacement for a long-term tenant.

Commuter homes as a legal alternative

There is, however, a legal way to use a property without renting it out full-time: commuter homes (pendlerboliger).

If your main residence is outside the Copenhagen area, you may be allowed to have a second home in the city. To be eligible, you must use the property for more than 180 overnight stays a year, and you must apply to the municipality for approval.

This option is especially relevant for professionals who work in Copenhagen but live elsewhere. It offers flexibility while staying in line with the overall goal of making sure the property is actively used.

The application process requires you to give detailed information about your situation, including your main residence, the expected use of the property in Copenhagen and why you need a second home. Approval is not automatic, so it is important to prepare thoroughly.

Temporary absence and special circumstances

Circumstances can change, and the rules allow some flexibility in these cases. If you need to leave your property temporarily, you can apply for permission to be away.

Common reasons include a job move, study opportunities, medical treatment or military service. In each case, you must send an application to the municipality with the relevant documentation.

This provision is especially useful for homeowners who plan to return to their property in the future. It lets them keep ownership without being forced to sell or rent out the property straight away.

Properties not covered by the rule

Although most homes in Copenhagen are subject to the residence requirement, there are exceptions.

Properties that have not been used as permanent homes within the last five years are often exempt. Establishing this status does, however, require verification, typically through official registers.

Even if a property is exempt from the residence requirement, it must still comply with the provisions of the local plan (lokalplan). For example, a property in an area designated for housing cannot automatically be used as a holiday home.

Enforcement and consequences

Copenhagen takes enforcement seriously. The municipality uses a combination of data analysis and reports from the public to identify possible breaches. By cross-checking property registers with civil registration data, it can quickly spot properties that appear to be empty.

If your property is flagged, you will usually be contacted and asked to explain the situation. This is your chance to provide documentation and clear up any misunderstandings. If the issue is not resolved, however, the municipality can escalate the case.

In the most serious cases, it can take legal steps that result in a tenant being housed in your property. This is a rare outcome, but it underlines the importance of following the rules.

How to comply with the rules and get the most out of your investment

Successfully navigating the residence requirement is about more than just following the rules; it is about making well-informed decisions that are in line with both legal requirements and financial goals.

Many landlords choose to focus on long-term rental as their main strategy and add limited short-term rental where it is allowed. Others look into commuter homes or apply for temporary exemptions when needed.

The key is to approach owning property in Copenhagen with a clear understanding of the regulatory environment. That includes keeping up with changes in the law, keeping accurate records and seeking professional advice when needed.

The benefits of renting out through BY Administration ApS

The residence requirement makes renting out year-round homes complicated, especially in Copenhagen, where enforcement is strict. BY Administration ApS specialises in property management and can help you maximise your rental income while you comply with the rules. The benefits include:

Reliable compliance: monitoring rental days, making sure tenants are registered correctly and reporting on time

Professional short-term rental management: staying within the legal limits and checking stricter rules in owners’ associations

• Administrative and legal support: handling leases, deposits, taxes and rules
• Local expertise and service: in-depth knowledge of Copenhagen and cooperation with partner companies
• Scalable solutions: efficient management of several properties across a portfolio

For property owners and landlords, the challenge is to work within these limits while still achieving a solid financial return. That takes a combination of knowledge, planning and adaptability.

By understanding the rules in detail, taking a proactive approach to compliance and getting expert guidance from BY Administration, you can avoid legal problems and get the most out of your investment. Whether you rent out a single apartment or manage a larger portfolio, mastering the residence requirement is crucial for long-term success in the Copenhagen property market.

FAQ: The residence requirement in Copenhagen

Does Airbnb count towards the residence requirement in Copenhagen?

No. Short-term rental does not meet the requirement, because the guests are not officially registered at the address.

How many days can I rent out my home short-term in Copenhagen?

Typically 30 days a year, or 70 days if you use a registered platform.

Can I have a second home in Copenhagen?

Yes, if you qualify for a commuter home and meet the conditions for its use.

Are there exceptions to the residence requirement in Copenhagen?

Yes, including certain properties, temporary absence and homes that are for sale.

How is the residence requirement enforced?

Through data checks and reports, with the municipality actively monitoring compliance.

Sources

Data collected internally from BY Administration’s rental portfolio.