You live in Denmark and have pensions or wealth abroad

When you are fully tax-liable to Denmark and you receive pensions from abroad at the same time, these pensions must appear on your Danish tax return. Pensions from abroad are not automatically reported to Denmark.

Pensions are divided into 3 types:

•  Social pensions, e.g. national pension, early retirement pension, ATP
• Private pensions, e.g. pension earned during an employment relationship, or paid privately to a bank/insurance company
• Public pensions, e.g. when you have been employed by the public sector, including the pensions of civil servants

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The taxation of foreign pensions depends on the mutual agreements Denmark has concluded with the other countries. There are both double taxation treaties and international agreements. These agreements explicitly determine which country has the right to tax, and how each type of pension will be taxed.

Foreign persons are taxed differently depending on which pension scheme/life insurance policy they have taken out abroad.

Wealth

If you have wealth abroad, the value of the wealth must be self-declared each year. For example, this wealth could be:

• Bank Accounts Abroad
• Property abroad
• Exchange value of listed securities held in foreign financial institutions
• Exchange value of unlisted shares abroad

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Property abroad

If you own a property abroad, you must pay property tax according to the Danish rules, but you do receive a discount for paid foreign tax on the property.

The property must be registered on your tax return on the same terms as Danish properties. If you have rental income, it must also be included on your tax return.

Foreign properties, whose foreign property assessment has not been approved by the Danish Tax Agency, must use the acquisition amount of the property as the basis for calculating property tax. The acquisition amount is converted (indexed) to the equivalent of the total acquisition in one of these years:

• 2001 with the addition of 5%.
• 2002
• October of the current income year

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The lowest value of these three years, is chosen as the basis for calculating the property value tax. This calculation is also called an EVS calculation.

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Disclaimer

The above information is for guidance purposes only, and we accept no responsibility for decisions made based on this information without prior individual advice. We accept no responsibility for errors or omissions.

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