- Starting a Business
- Does Your Company Need Foreign Workers?
10 Things You Need to Know about Tax in Denmark
- 1. When do You Become Taxable in Denmark
- 2. How to Register in the Danish Tax System
- 3. What is Included in Your Taxable Income
- 4. How Much Tax Do You Need to Pay
- 5. Social Security Network for Work within the EU
- 6. Does Your Company Need Foreign Workers
- 7. Company or Self-Employed
- 8. How to Pay Salary to Yourself as a Major Shareholder
- 9. Securities and Other Activities Abroad
- 10. How to Avoid Double Taxation
Does Your Company Need Foreign Workers?
Companies can hire highly-skilled foreign workers, who only have to pay 32.84% tax for up to seven years.
In Denmark, we call this expat scheme the Tax scheme for foreign researchers and highly-paid employees.
The rules apply to anyone who both:
- Becomes taxable to Denmark because of their employment.
- Has a salary at or above 66,600 DKK per month, before labor market contributions.
This scheme is aimed at highly educated persons (including professors) and other highly-skilled workers.
There are many cases, which can be problematic for employees, due to the complicated nature of the rules. For this reason, we recommend that you seek further advice about the scheme.
We can assist and advise you and your employee about which types of deductions you are eligible for; and how to plan these deductions between your employee and their spouse.
SkatteInform does not take any responsibility for any actions taken based on the information above, before receiving individual tax advice.
To learn more about the scheme and SKAT’s requirements: click here