Important to register with the Civil Registration office and obtain a tax card
When you move to Denmark, you must register with the Civil Registration Office (Folkeregisteret). You need to prepare a tax card, where you must disclose your annual income and any deductions you expect to receive. If you have wealth abroad, you are obliged to disclose this wealth to Denmark.
For example, this wealth could be:
• Life and pension insurance, etc.
• Property abroad
• Securities
• Other receivables
Please note that the obligation to declare accounts and financial institutions abroad has been discontinued as of 12/31/2018. However, you must continue to disclose foreign assets on your disclosure form. You must also remember to note the entry values of foreign listed securities, that are held in foreign financial institutions on the form. Furthermore, the exchange value of foreign unlisted shares and other receivables must be stated in the disclosure form. The input values for this must be calculated at the time of the tax liability and reported to the Danish Tax Agency.
Information sheet for the first year
When you move to Denmark, you will not receive an automatically generated annual statement the first year. Instead, you must complete and submit an information form to the Tax Agency before the submission deadline. There are two principles for calculating the full-year tax.
Main rule: conversion to full year income
People who are fully-taxable for part of the year must, as a rule, recalculate taxable income so that the income assessment corresponds to a full year's income. On the basis of the accrued full-year income, full-year tax is calculated. The calculated full-year tax is proportionally reduced, according to the ratio of the interim amounts to the full-year amounts.
Exception: actual income
If conversion to full-year income results in the calculated income exceeding the actual full-year income (including any foreign income), it is possible to opt for taxation of the actual income for the whole year; or for the part of the year in which the person is fully tax-liable.
Please note that this option does not have to be converted into 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, when calculating taxable income, the person must take into account the actual income that the person in question acquired before moving to Denmark.
Our advice
You should investigate which of the two principles will be most optimal for you before submitting your form to the Tax Agency. We offer preparation of tax calculations according to the two principles; and advise you on the optimal choice for your particular situation.
Contact Us
You can always contact us and receive a free and no-obligation quote. We would like to talk about how we can help you, and the solutions you need.
If you wish to be contacted by SkatteInform State-Authorised Accounting Partnership, CVR no. 35394206, please use our contact form below. Your personal data will be processed in accordance with the General Data Protection Regulation. You will be contacted to respond to your enquiry in the best way possible.
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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