Tax — the principles, with Denmark as the example

What is realisation taxation?

Realisation taxation means you only pay tax on a gain on the day you sell, when the gain is "realised". As long as you own the stock, the rise is not taxed, however large. This is how ordinary stocks in a regular account are taxed in most countries — Denmark (realisationsbeskatning), Germany (Abgeltungsteuer) and Sweden's ordinary VP-konto among them. The rates differ by country. The opposite is mark-to-market taxation.

Tax is national. This page describes the rules in Denmark. The principle is the same in many countries, but the rates, caps and account types are not — check your own tax authority. If you use Kiggo in Sweden or Norway, the app shows your country's own tax terms (ISK and schablonskatt; aksjesparekonto and skjermingsfradrag).

One red dot: the tax only comes on the day you sell.

How it works

Example: You buy stocks for DKK 50,000. After five years they are worth 90,000. In those five years you have not paid a krone in tax on the rise. The day you sell, you have a gain of 40,000, taxed as share income: 27% up to the threshold (DKK 79,400 in 2026, double for married couples), 42% on the rest.

Sell only half, and only half the gain is taxed. You control when the tax comes.

Pros and cons

Pro: The money works untaxed for as long as you own. Compounding on the deferred tax is a real advantage over many years. And you can plan sales to stay under the threshold.
Con: Losses can only be used once realised — and losses on stocks can only be offset against gains and dividends on other stocks, not against salary. And the big bill comes all at once.

Which securities

Ordinary stocks — Danish and foreign — in a regular account. Also Danish distributing funds approved as equity-based. Not ETFs (most are mark-to-market) and nothing in an aktiesparekonto.

Kiggo says: Realisation taxation is a bill you pick the date for yourself. The tax office rarely gives you that choice.

The typical beginner's mistake

Selling a large gain all at once in December and shooting far over the threshold into 42%. Often you can split the sale over two years — half in December, half in January — and keep both under the threshold. Check the rules before you do it.

How you see it in Kiggo

In Kiggo's dictionary, realisation taxation comes with a small drawing: one red dot at the sale, where mark-to-market has a dot at every New Year. Kiggo's portfolio shows your gain and loss per stock — that is the figure taxed on the day you sell. Kiggo does not calculate the tax; skat.dk does.

Frequently asked questions

What is the share-income threshold in Denmark in 2026?

DKK 79,400 for singles and 158,800 for married couples. Up to the threshold you pay 27%, above it 42%. The threshold is adjusted every year.

Do I have to report the gain myself?

Danish providers report purchases and sales automatically, so the gain usually appears on your annual tax statement. Check it anyway — especially for foreign stocks and for stocks bought before 2010, where the tax authority does not always know the purchase price.

Can I deduct losses?

Losses on stocks can be offset against gains and dividends from other stocks — also in later years. They cannot be offset against salary or interest income.

Kiggo explains — Kiggo does not advise. We never tell you what to buy or sell, and key figures can only be compared between companies in the same industry. The decision is yours. Last updated 2026-09-07.

Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.