Denmark: Tax deductible mortgage interest?

Question

We are soon relocating from San Diego, California to Copenhagen, Denmark. We are trying to determine if this can work for us. We are a family of 6 (4 children under 10).

If we were to buy a house in Copenhagen, is the mortgage interest a tax deduction?

Answer 1

Yes, it's probably not calculated or deducted the way you are used to, but if you look at the figures for houses for sale in Denmark you will see two numbers for the monthly payout. One is without the deduction and one is with the deduction, which makes it easy at a glance to see if you can afford the house in question.