Denmark is well known for its high quality of life, generous public services, and high taxes. But tucked into the Danish tax system are some helpful perks you might not know about, especially if you’re new to the country.
One of those perks is the servicefradrag, or “service deduction” in English, a clever little tax deduction that gives you a tax reward for caring for your home. If you’re an international resident in Denmark, you’ll want to have this on your radar.
What is the servicefradrag?
In short, it’s a way to get part of your money back when you pay someone to help with household chores or make energy-efficient improvements to your home. Think cleaning, babysitting, garden maintenance, or getting your windows replaced. As long as it’s your primary residence—or a holiday home you own—you can claim part of the costs you pay on your taxes.
How much can I expect to claim back?
In 2025, you can claim up to DKK 17,500 per person, an increase from DKK 11,900 in 2024. That’s a pretty significant rise, and it means more potential savings. The deduction covers about 26% of the labor cost. So if you pay someone DKK 1,000 for qualifying work, you could save around DKK 260 in taxes. If you and your partner both qualify and live together, you could claim up to DKK 35,000 combined—that’s over DKK 9,000 in possible tax savings.
Who’s eligible to claim?
To qualify, you need to be at least 18 years old by the end of the tax year and fully tax liable in Denmark. That means you live, work, and pay your taxes here. You also need to pay for the work yourself. You can’t claim the deduction if your landlord or employer covers the cost. And it’s important to remember that this only applies to labor, not materials. If your invoice includes both, only the wage portion is deductible.
What kinds of work qualify?
There are two main types of work that qualify for the servicefradrag: household services and craftsman services.
Household services cover the kinds of tasks many of us would love to outsource—like cleaning, window washing, garden work, snow removal, or even babysitting. If you’re paying someone to help out regularly or even now and then, you may be eligible to claim that cost.
And here’s something many people don’t know: it doesn’t have to be a professional company. You can also claim the deduction when a private individual does the work, as long as they’re over 18, live in Denmark, and pay taxes here. They’ll need to fill out a service declaration, and you’ll need to pay them via bank transfer (no cash!). Let’s say your neighbor’s son helps you clean your flat every Friday, and she’s 19. You can claim it as long as he fills out the form and reports the income.
Craftsman services, on the other hand, are all about energy-saving improvements. If you’ve been thinking of insulating your home, switching out old windows for energy-efficient ones, or installing a heat pump or solar panels, you’re in luck. These types of projects often qualify for the deduction. The only catch? The work must be done by a registered business with a valid CVR number, and you must get a proper invoice with labor clearly listed.
Let’s say you’re getting your roof insulated this winter to keep the heating bill down. That kind of work counts. The same goes for replacing outdated radiators, adding better insulation to your walls, or installing a rainwater system to reduce water use. Even smaller upgrades might qualify, as long as they fit the criteria and come with a clear, itemized invoice.
Remember the correct type of invoice!
Speaking of invoices, this part is key. SKAT (the Danish Tax Agency) will only approve your deduction if the labor cost is listed separately from materials. If it’s all lumped together, they can reject your claim. So when you hire someone, remember to ask for a proper invoice that clearly breaks it down. And remember to pay by bank transfer or card—cash payments won’t count.
How to claim
It’s all done online through SKAT’s TastSelv system. You’ll log in at skat.dk with your MitID, find your annual tax statement (called årsopgørelse), and enter the details under “servicefradrag.” (Check this video if you need any help: https://skat.dk/en-us/individuals/deductions-and-allowances/home-improvement-and-household-services/video-how-to-claim-a-deduction-for-household-services)
You’ll need a few things ready:
- The name of the service provider
- Their CVR number (or CPR if it’s a private person)
- The type of work done
- The date it was performed
- The amount you paid for labor
Make sure to keep all your documentation—receipts, invoices, proof of payment, and any service declarations—just in case SKAT wants to see them later. You don’t need to upload them when filing, but you do need to be able to present them.
Top tips when making a claim
- Don’t try to claim material costs (they’re not allowed), always ask for an itemized invoice, and never pay in cash. Also, make sure the person or company you hire is eligible—check their registration and tax status if you’re unsure.
- Timing also matters. You need to file your deduction before the deadline for the following tax year, which is usually around mid-March. If you wait too long, you could miss the chance to claim it. So if you had work done this year that qualifies, don’t leave it until the last minute.
Why it’s important to claim
This deduction can make a real difference in your budget, especially if you’re already investing in your home. Let’s say you’ve hired someone to clean your flat every two weeks for DKK 600. Over the year, that’s more than DKK 15,000—almost the full deduction amount. That’s nearly DKK 4,000 back on your taxes.
Or maybe you’re planning a more significant project, like replacing all your windows. You get a DKK 60,000 invoice, with DKK 30,000 for labor. You and your partner each claim DKK 15,000, and you save DKK 7,800. That saving makes a difference, especially when paired with lower energy bills.
But it’s not just about money. The servicefradrag also supports Denmark’s sustainability, transparency, and fair employment goals. It encourages people to choose legal, green solutions and rewards those who do.
If you’ve just moved to Denmark or haven’t explored this option before, now is a great time to do so. Whether you need help with household chores or want to make your home more energy efficient, the servicefradrag can make your life easier and more affordable.
So go ahead, check your inbox for old invoices, consider upcoming home projects, and see where you can save. The system is there to support you—take advantage of it.
Have you used the servicefradrag yet? If not, maybe this is the year to give it a try. You’d be surprised how quickly those savings add up.
