The Cost of Owning a Car in Denmark: Guide
Whether you live in Denmark or you’re a foreigner planning to move, you may be planning to buy a car at some point. For a new car owner, it’s crucial to know how much a car costs per month, so they can make sure there is a budget for a private vehicle. The cost of car ownership will vary depending on the vehicle type, model, frequency of use, and whether it’s new or old.
You will spend between 12,000 DKK to 20,000 DKK annually to run a car in Denmark. These are recurring costs covering insurance, inspection, taxes, and maintenance. The cost of buying a new Honda ranges between 200,000 DKK and 500,000 DKK, depending on the model. A used Audi A6 costs about 216,800 DKK.
The cost of owning a car is higher in Denmark than in other European countries. Denmark is known for high vehicle registration costs which go up to 150% of the car’s market value, which makes the cost of car ownership go high. However, most people resort to buying used cars, which have also become costly because of the rising demand.
Costs of car ownership in Denmark
According to the Danish Motorist Association cost of running a car ranges from 2.65 DKK per km for a small new car (purchasing price 100,000 DKK) to 4,88 DKK per km for a larger new car (purchasing price 350,000 DKK). The ownership cost of an electric car is 3,58 DKK per km and the hybrid is 3,78 DKK per km.
Owning a car in Denmark comes with recurring expenses, and you should be ready to invest money and time in it. The cost of individual cars depends on:
- Vehicle model and type
A new Peugeot 5008 Allure 2022 will cost you 145,729 DKK, while a Mercedes Benz SL 2022 costs 1,067,500 DKK.
- New or used
A new car comes with high registration taxes, 85% to 150% of the vehicle’s value. When you buy an old car, ownership changes, but there’s no registration tax required because it’s only paid once in the car’s lifespan.
Other than the purchase price and registration tax, there are recurring costs that come with car ownership in Denmark, and they are:
| Annual green tax or “gron afgift” | It depends on the car’s mileage and the type of fuel it uses. It’s payable in six months installments. The costs range from 620 DKK and 21,660 DKK for petrol cars. For diesel cars, it costs between 240 DKK to 32,040 DKK. |
| Inspections | Regular inspection done by Bilsyn ensures that your car is roadworthy and functional. All new vehicles have their first inspections after four years from purchase, while used cars have it once every two years. The inspection costs are about 750 DKK per visit. |
| Parking fees | Denmark’s parking costs depend on the municipality, the number of hours, and location. In major cities, parking fees are higher than in smaller cities. In Copenhagen city center, parking during the day costs 38 DKK per 15 hours on weekdays and 38 DKK on Saturdays. In airports, parking costs about 320 DKK per day. In Aalborg, you can pay a 1,000 DKK annual parking fee to park on the city’s streets. |
| Insurance | Car insurance costs vary, and you can compare to choose the one that suits your budget. They range between 7,000 DKK and 10,000 DKK annually. |
| Fuel costs | Gasoline currently costs 16.625 DKK per liter or 61.57 DKK per gallon. Diesel costs 15.025 DKK per liter. |
What taxes do car owners pay in Denmark?
All vehicle owners in Denmark pay car taxes. Some are one-time off payments, while others are recurring. They are:
1. Registration tax
During registration, a car owner pays the Value Added Tax (VAT) and a registration tax. VAT is 25% of the vehicle’s initial value.
The initial purpose of a car registration tax was to make car owners play a role in public expenditures relating to road construction and maintenance. Today, a registration tax in Denmark aims to lower the number of vehicles. If you import a car to Denmark, you’re also supposed to pay a registration tax.
Below is the registration tax rate for different vehicle types in Denmark:
Private and passenger cars:
- 65,800 DKK and below – 25%
- 65,801 DKK- 204,600 DKK – 85%
- Above 204,601 DKK – 150%
Buses:
- Upto 12,100 DKK – 0%
- Above 12,101 DKK – 60%
Vans and lorries (weighing up to 4,000kg):
- 75,900 DKK and below – 0%
- Above 75,901 DKK – 50%
Owners of pick-ups and box vans with no window on the left side behind the driver and weighing above 3,000 kg pay a registration tax not exceeding 47,000 DKK. Lorries weighing above 4,000 kg pay no registration tax.
There’s a deduction on the registration tax of zero and low carbon (CO2) emission vehicles following Denmark’s plan to become carbon neutral and lower emissions by 2050. The registration tax is as follows:
Zero-emission vehicles emit 0g of carbon dioxide (CO2) per kilometer. The tax rate is:
- Private cars – A 167,500 DKK basic deduction from the registration tax.
- Vans – A 78,750 DKK basic deduction from the registration tax.
Low emission vehicles emit CO2 of above 0g but below 50 g per kilometer. All low emission vehicles registered in 2022 are subject to a basic 48,750 DKK reduction from the car’s registration tax.
For vehicles using gas, the registration tax includes an additional 6,000 DKK for every kilometer a car covers below 20 km/l. For every kilometer that a car covers over 20 km/l, you deduct 4,000 DKK from the car’s registration tax.
Electric cars pass through a converter to estimate their ideal km/l. Currently, electric vehicles pay 20% of the registration tax. By 2023, they will be paying the same amount of tax as other vehicles.
If you are looking to buy a used car in Denmark, check out our guide on best used car websites.
2. Periodic tax
If you have a car with a Danish number plate, you must pay a periodic tax:
Weight tax
Weight tax applies to vans and passenger cars registered on or before 1st July 1997. It depends on the vehicle’s weight, and it varies with vehicles. You can check your individual vehicle’s weight tax here. The overall weight tax for different weights of cars is as follows:
| Weight (kg) | Weight Tax (DKK) |
| 601 – 800 | 1,290 |
| 801 – 1,100 | 1,760 |
| 1,100 – 1,300 | 2,340 |
| 1,301 – 1,500 | 3,050 |
| 1,500 – 2,000 | 4,200 |
| Above 2,000 | 120 DKK for every 100 kg |
Green property tax
Green property tax is payable for passenger cars, excluding buses, twice a year. It depends on the distance a car covers per liter of fuel. The rates per half-year basis are as follows:
Petrol cars:
- 50km/l – 340 DKK
- 20km/l- 500 DKK
- Below 4.5km/l – 11.780 DKK
Diesel cars:
- 50km/l – 550 DKK
- 32km/l – 160 DKK
- Below 5.1 km/l – 18.570 DKK
CO2 property tax
This tax applies to vans and cars registered by 1st July 2021. It’s dependent on the amount of CO2 a car emits per kilometer.
- 121g of CO2 and below – DKK 253/g
- 121g – 155g – DKK 506/g
- Above 155g – DKK 961/g
For lorries and vans, the CO2 tax is 253 DKK/g irrespective of the amount of CO2 the car emits.
How much does it cost to register a car in Denmark?
After buying a car in Denmark or importing it to the country, you’ll need to register it at a vehicle registration office. Every new car owner should register the vehicle within four weeks of purchase.
During registration, you will present the vehicle’s identification number, owner’s name, insurance company, and a payment fee of 340 DKK. You will then receive a registration certificate via regular post within two weeks.
Once you’ve approved the registration before submitting all details, you can’t cancel or change any detail. In case of any wrong entry, you’ll pay the fee again.
The cost of registration for all cars, used or new, is as follows:
- Registration through the Motor Vehicles Register costs 340 DKK.
- Registration via the Erjeskifte app costs 340 DKK.
- Registering through a number plate provider costs 380 DKK and an additional processing fee which varies with providers.
- A registration certificate at 100 DKK. The certificate lists one user, but if you need to add more owners or delete another, you’ll pay 340 DKK.
Car prices in Denmark
The price of used cars in Denmark varies depending on the model. You can find used vehicles between 100,000 DKK and 1M DKK. New cars are costly, but you can find them from 200,000 DKK to 18M DKK.
Denmark is one of the most expensive countries in Europe to buy a car. Check out the most affordable places in the EU for your next car purchase.
Used car prices
| Model | Price ( DKK) |
|---|---|
| 2021 Peugeot E-2008 | 289,900 |
| 2008 Volkswagen Eos | 144,900 |
| 2017 Mercedes E-Class | 549,500 |
| 2021 Mercedes Benz Gle-Class | 1,299,500 |
| 2016 Volkswagen Sharan 2.0 TDI | 429,900 |
| 2014 Audi A6 2.0 TDI | 216,800 |
New car prices
| Model | Price ( DKK) |
|---|---|
| Pagani Huayra R 2022 | 18,861,200 |
| Rolls Royce Cullinan 2022 | 2,142,625 |
| Lotus Emira V6 RWD | 505,690 |
| Lincoln Navigator Standard AWD | 486,231 |
| Lincoln Aviator Livery RWD | 310,307 |
| Lincoln Corsair Standard FWD | 221,857 |
Things one should know when buying a car in Denmark
1. New or used?
Before deciding, you need to understand the differences between a new and used car. Both have their pros and cons. The first consideration is the cost.
Buying a new car in Denmark attracts an initial tax of above 80% of the vehicle’s market value. There’s no registration tax required with a used car, making it a cheaper option. It’s also important to note that cars depreciate over time.
The prices of the same type of car will vary, with a new car costing more than its used version.
2. Type of seller
If you’re buying a used car in Denmark, you’ll either get it from a commercial seller or a private owner. If you buy from a Danish retail dealer, the law dictates that you receive a two-year warranty in case of existing faults.
This warranty doesn’t cover defects arising after purchasing the car, although some sellers will give you a six-month warranty on such issues.
If you’re buying from a private seller, check for regular maintenance and servicing. Although buying a car from a private owner is about 5 DKK to 15,000 DKK cheaper than from a dealer, it’s essential to weigh the pros and cons of both and compare prices from various sellers.
3. Your budget
With a budget, you can narrow it down to the type of car you can afford. This budget should consider the registration costs, registration tax, recurring taxes, and other recurring costs of maintenance.
If you’re buying using a car loan or paying in installments, ensure you can simultaneously meet the interest charges and the maintenance costs.
4. The car’s history
Before buying a car, you will learn about its history from this site. The car history provides you with the following information:
- The car’s roadworthiness inspection is a mandatory requirement in Denmark. Other than the dates of past inspections, you’ll access the total kilometers the vehicle has covered between each check. This information helps you determine whether the car’s mileage counter is accurate.
- Unpaid loans tied to the car and all the vehicle’s previous missing reports. This report enables you to determine whether the car has any legal issues.
5. The car’s specifications
These specifications include the make, type, model, year of manufacture, and fuel economy. You can know whether the car meets your specifications and budget with this information.
For instance, if you’re buying a family car, a Ford Mustang GT is a good car, but it’s not ideal for families. If you have no experience buying cars, use the information on the type or model to check reviews online.
6. Maintenance and service history
Ask your dealer to give you the car’s service book. If the service book has stamps from licensed service workshops, the vehicle has undergone regular maintenance and services. If the car is old, check if it has received rust protection treatments.
Compare the car’s plate numbers and those on the registration papers to avoid paying for a different vehicle.
7. Insurance
Before closing the deal, check all the insurance details of a used car and determine if it’s within your budget. Without a proper background check, you may pay an expensive insurance premium.
Approach various insurance companies and compare the prices and terms before settling for one.
