01 March 2023
When an individual comes to Denmark to work, several tax issues arise. In the following, we clarify some of them.
27 pct. taxation
On certain conditions, individuals coming to Denmark to work may be eligible for a favourable tax rate of 27 pct. for up to seven years. An 8 pct. labour-market contribution must also be paid, however, bringing the total tax rate to just below 33 pct.
These rules apply to scientists and other highly paid employees, such as professional handball and football players. To qualify as highly paid, the employee’s annual salary must exceed DKK 870,000 + social security contributions. This is a gross tax scheme, i.e. no personal allowance or deductions apply. Income covered by this special type of taxation also includes the value of a company car and refunds of private expenses, costs of living, school fees, etc., as well as bonuses.
In addition to the minimum salary, a number of other conditions apply (if relevant, see the separate publication on these rules).
To learn more download the publication as a PDF