Expatriation

Where should tax be paid? This is one of the very first questions people ask when considering working abroad. It is not an easy question to answer. It depends on many factors. Here we try to give you an overview of the rules.

Discontinuation of full Danish tax liability

Generally, tax on the full income - not just the salary - is payable in the country where a permanent home is available. To be certain that the full Danish tax liability ceases, the home must be sold or rented out for at least 3 years without termination. In exceptional cases, it has been seen in practice that the tax liability ceases when
renting out a co-operative property for only 2 years.

However, less can also do it. In many cases, there will be nothing to prevent the permanent residence in Denmark from being maintained. See below on dual domicile. However, many people choose to sell to avoid having their house sit empty for most of the year.

Interest expenses on real estate in Denmark, e.g. a Danish holiday home, can still be deducted and carried forward for set-off against future income.

When full tax liability to Denmark ceases, unrealized gains on shares, options and the like may be taxed.

You can read more right here

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