If you are a non-resident in Denmark and sell property in India, the buyer must deduct tax on the capital gain portion, and in practice often on the full price unless you produce a lower or nil deduction certificate from the Indian income tax department. Long-term gains on property held for more than 24 months are taxed at 12.5 per cent plus surcharge and cess. You can then repatriate the proceeds up to USD 1 million per financial year with Forms 15CA and 15CB.
- Document route
- District court notary, then Danish MFA apostille
- Time difference
- IST is 3.5 to 4.5 hours ahead
- Who deducts
- The buyer, before paying you
- Long-term rate
- 12.5% plus surcharge and cess
TDS on Property Sale from Denmark: how it works
Before you sign the sale agreement, we calculate the expected capital gain using your purchase cost and improvement costs and check whether reinvestment exemptions could apply. If the expected tax is lower than what the buyer would withhold, we apply online for a lower deduction certificate, which typically takes several weeks. You need a PAN, and you can authorise us to file on your behalf. The sale deed itself can be executed in India by your attorney holder under a power of attorney you sign at a Danish district court and have apostilled.
After the sale, the buyer deposits the tax, files the TDS statement and gives you Form 16A. You file an Indian return for the year to claim any refund. The money goes into your NRO account, and a chartered accountant issues Form 15CB so the bank can remit it to Denmark. Watch for buyers who do not have a TAN or who deduct at the wrong rate, and keep the sale deed, payment proof and certificates together for your Danish tax return.
What clients in Denmark should know
- Under the India-Denmark tax treaty, India can tax gains from Indian immovable property; Denmark then gives relief for the Indian tax according to Danish rules.
- Report the Indian sale in your Danish tax return; the Danish Tax Agency expects worldwide income and gains of residents to be declared.
- If you are still a returning resident or have recently moved to Denmark, your Indian residential status for the year affects the deduction, so confirm it first.
Step by step from Denmark
Video consultation
A call at a time that suits Denmark, after we have read your documents.
Documents signed in Denmark
District court notary, then Danish MFA apostille
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Denmark where needed.
The full guide
This page covers what changes when you are in Denmark. For the law, the documents and the step-by-step procedure, read our main page on TDS on Property Sale, or see all services for clients in Denmark and the Cross-Border Tax & Money practice area.
Questions from clients in Denmark
Can the buyer deduct only on the gain?
Only with a lower deduction certificate. Without it, buyers usually deduct on the full sale price to protect themselves.
How long does a lower deduction certificate take?
Usually several weeks after a complete application. Start before the sale agreement is signed so the timing fits the deal.
Can I send all the money to my Danish bank account?
Up to USD 1 million per financial year from your NRO account, with Forms 15CA and 15CB, after tax has been paid.