Stamp Duty

General

Stamp duty is paid to the Greenland Treasury. The Greenland Tax Agency is responsible for stamping documents.

Documents subject to stamp duty include:

• Deeds

• Mortgage deeds

• Promissory notes

• Documents relating to movable property, such as recreational boats and cars, where a loan is taken out with a repayment period of more than three months

• Shares

• Addenda (supplements to contracts)

Stamp duty is payable in the following situations:

• When real property is sold or transferred as a gift, including the transfer of ownership to your own children during your lifetime.

• When securities, debt, ownership interests in companies, associations and similar entities are bought or sold.

• When taking out a loan or establishing a debt, mortgage or other security interest.

The buyer and seller agree on who will pay the stamp duty. The cost of the stamp duty may also be shared between them.

Rates

Stamp duty is calculated as a percentage (1.5%) of the value. The value is the market value. This will often be the purchase price, but in some cases another amount may apply. For example, if real property or a business is transferred without payment or at a price below its market value, the stamp duty is calculated based on the market value.

For loan documents, stamp duty is calculated based on the portion of the loan that remains outstanding after three months.

Example
A person takes out a loan to purchase a recreational boat. The total purchase price is DKK 300,000. The person pays DKK 100,000 at the time of purchase and borrows the remaining DKK 200,000. The DKK 200,000 loan is repaid at DKK 10,000 per month.

In this example, the stamp duty will be 1.5% of DKK 170,000, which is the portion of the loan that remains outstanding after three months.

Documents Exempt from Stamp Duty

A number of documents are exempt from stamp duty:

• Documents relating to the acquisition of commercial ships and boats.

• Documents relating to the transfer of public buildings.

• Mortgage deeds and indemnity bonds issued to the Government of Greenland pursuant to certain provisions of the Greenland Parliament Act on support for housing construction, etc.

• Mortgage deeds and indemnity bonds issued under various business development schemes and Nordic development funds.

• Documents concerning transfers between the Government of Greenland, Greenlandic municipalities, the Danish State or foreign states.

• Documents concerning loans taken out by Greenlandic municipalities and the Government of Greenland.

• Documents drawn up as a result of changes in personal or family circumstances, where they only establish rights and obligations for the persons concerned. This includes documents relating to inheritance, divorce, separation, termination of cohabitation, death and similar circumstances.

• Mergers or demergers of companies for which the Greenland Tax Agency has approved tax exemption.

Documents Not Subject to Stamp Duty

The following documents are not subject to stamp duty:

• Documents concerning the transfer of movable property where no debt is incurred with a repayment period exceeding three months.

• Documents concerning the transfer of a home with a right of occupancy.

A document subject to stamp duty must be stamped within eight weeks of the date on which the stamp duty liability arises.

The stamp duty liability arises when a document subject to stamp duty is drawn up.

Procedures

When you draw up a document that is subject to stamp duty – for example, in connection with the sale or purchase of real property – you must submit the document and the required supporting documentation to the Greenland Tax Agency and pay the stamp duty.

The document will only be stamped once the stamp duty has been paid and the Greenland Tax Agency has received the original documents.

Payment

You can pay the stamp duty when you submit your documents to the Greenland Tax Agency. If you pay by bank transfer, you do not need to wait for the Greenland Tax Agency to send you an invoice.

GrønlandsBANKEN A/S
Account number: 6471-1836711

BankNordik
Account number: 8120-1593102

It is important to enter the correct payment reference when transferring the payment to the Greenland Tax Agency's stamp duty account (deed documents).

Examples

B-1010 Nuussuaq (if you live in Nuussuaq or Qinngorput)
B-35 Nuuk (if you live in Nuuk)
B-100 Upernavik (if you live in Upernavik)

Do not use your CPR number or name. Only enter the house or apartment number, B-number and town.

Submitting documents to the Greenland Tax Agency

• Contract(s)

• Bank receipt confirming payment of the stamp duty

• Original deed (for real property), drawn up in connection with the transfer. A template and guidance are available on the website of the Court of Greenland.

• Original debt documents, including owner's mortgage deeds, mortgage deeds, addenda, etc.

• CVR or CPR numbers of the persons or entities involved

Remember to clearly state where the original documents should be sent after processing.

The Greenland Tax Agency recommends that you send original documents by registered mail. Alternatively, you can deliver the documents to one of the Greenland Tax Agency's offices.

By mail

Greenland Tax Agency
Intaleeqqap Aqqutaa 1
P.O. Box 1605
3900 Nuuk

After submission and payment

Once the Greenland Tax Agency has received the documents and payment of the stamp duty, the document subject to stamp duty will be stamped. Once stamped, the document will be sent to the recipient you have specified – normally either you or the Court of Greenland. Original documents are sent by registered mail.

The Greenland Tax Agency will process the application as quickly as possible but reserves the right to a reasonable processing time.