Intercompany Lease Agreement Template for Denmark

The Intercompany Lease Agreement is essential for Danish corporate groups where one entity owns real estate assets that are leased to other group companies. This document type is specifically designed to comply with Danish legal requirements, particularly the Business Lease Act (Erhvervslejeloven) and transfer pricing regulations. It is used when establishing formal property rental arrangements between affiliated companies, ensuring transparency and arm's length terms. The agreement includes detailed provisions for rent determination, maintenance responsibilities, and operational costs, while incorporating necessary documentation to support transfer pricing compliance. This template is particularly relevant for corporate restructuring, tax planning, and efficient asset management within Danish corporate groups or international companies with Danish subsidiaries.

1. Parties: Identification of the lessor and lessee companies, including company registration numbers (CVR numbers) and registered addresses

2. Background: Context of the lease arrangement, relationship between the parties, and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the leased premises, including address, size, and permitted use

5. Lease Term: Duration of the lease, commencement date, and any renewal options

6. Rent and Payment Terms: Base rent amount, payment schedule, and method of payment

7. Rent Review: Mechanism and timing for rent adjustments, including index-based increases

8. Operating Costs and Utilities: Allocation of responsibility for operating costs, utilities, and other expenses

9. Maintenance and Repairs: Responsibilities of each party for maintenance, repairs, and replacements

10. Use of Premises: Permitted use of the property and any restrictions

11. Insurance: Required insurance coverage for both parties

12. Transfer Pricing Compliance: Confirmation that rent and terms are at market rates with reference to supporting documentation

13. Assignment and Subletting: Rights and restrictions regarding assignment and subletting

14. Termination: Termination rights and procedures for both parties

15. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction

16. Signatures: Execution provisions and signature blocks