Relocation to Denmark

When you move to Denmark, you must register with the National Register. You must prepare a tax card, where you must state your annual income and any deductions you expect to receive. If you have assets abroad, you have a duty to disclose these assets in Denmark.

For example, this could include:

Life and pension insurance, etc.
Property Abroad
Securities
Other receivables

Please note that the duty to declare bank accounts and stock deposits abroad has been abolished per. 31.12.2018. However, you must continue to disclose foreign conditions on your tax return form and remember to record the entry values of foreign listed securities listed in foreign countries in the Danish tax authority’s share system. In addition, the market value of foreign unlisted shares and other receivables must be stated in the tax return form. The entry values must be calculated at the time of the tax liability's entry and reported to the Dansih Tax Agency (Skattestyrelsen).

Information Form for the First Year

As a newcomer, you will not receive an automatically generated annual tax statement in the first year. Instead, you must complete and submit a tax return form to the Tax Agency before the filing deadline. There are two principles for calculating full-year tax.

Main Rule: Conversion to Full-Year Income

People who are fully taxable part of the year must, as a general rule, recalculate the taxable income so that the income taxation corresponds to a full year's income. On the basis of the full-year income, full-year tax is calculated. The full-year tax that has been calculated is reduced proportionately according to the ratio between the interim amounts and the full-year amounts.

Exception: The Actual Income

If conversion to full-year income means that the calculated income exceeds the actual full-year income, including foreign income, it is possible to choose taxation of the actual income. This could be for the whole year or for the part of the year, in which the person is subject to full tax liability.

Note that this choice means that no calculation should be made for a calculated full-year income of the person's income during the part of the year, in which the person was fully taxable.

The choice also means that the actual income that the person has acquired before moving to Denmark must be included when calculating the taxable income.

Our advice

You should consider which of the two principles will be optimal for you before submitting your tax return form to the Tax Agency. We can make tax calculations according to the two principles and advise you on the optimal choice for your particular situation.

You can always contact us for a free, no-obligations quote. We would like to talk about how we can help you and the solutions you need.

If you want to be contacted by SkatteInform State-Authorised Accounting Partnership, CVR no. 35394206, please use our contact form below.

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