No.
If you rent out a property as a private individual, you do not need to link a CVR number to the rental. This also applies if you choose to be taxed under the rules of the Business Tax Scheme (virksomhedsordningen).
This is one of the most common misconceptions among new residential landlords.
Why don't you need a CVR number?
Even though residential rental can be considered an independent business for tax purposes, the Danish Tax Agency has established special rules for private residential rentals.
This means that you can calculate and report the tax on your rental income without registering a CVR number.
Does this also apply when using the Business Tax Scheme?
Yes.
Many people believe that the Business Tax Scheme requires a CVR number because the scheme is used by many self-employed businesses.
It does not.
You can use the Business Tax Scheme for your residential rental without setting up a business with a CVR number.
Can you still register for a CVR number?
Yes.
There is nothing to prevent you from registering a business and obtaining a CVR number.
For most private landlords, however, it offers no tax advantages and will only result in more administration.
When might a CVR number make sense?
If your rental activity develops into a larger business with multiple activities or properties, it may at some point be relevant to consider a business structure with a CVR number.
However, this depends on the specific situation and not on the fact that you are simply renting out one or more properties as a private individual.
Get help with taxes on your rental income
Reportability helps private landlords calculate taxes and report their rental income correctly – without the need for a CVR number.
The tool helps you, among other things, to:
- calculate taxes according to current regulations
- choose the tax scheme that best suits your rental property
- keep track of deductions and reporting
- make the process simple and straightforward
In short
As a general rule, you do not need a CVR number to rent out a property as a private individual.
This also applies if you use the business tax scheme (virksomhedsordningen). For most private landlords, a CVR number offers no particular advantages and will only make administration more complex.
