Foreign employees

27 pct. Taxation

On certain conditions, individuals coming to Denmark to work may be eligible for a favourabletax rate of 27 pct. for up to seven years. An 8 pct. Labourmarketcontribution 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 (non-guaranteed pay components are not taken into account) must exceed DKK 936,000 + social security contributions. This is a gross tax scheme, i.e.no personal allowance or deductions apply. Income covered by this special type of favorable taxa-tionalso includes the value of a company car, free telephone and internet and re-funds of private expenses, costs of living, school fees, etc. as well as bonuses.

In addition to the minimum salary, a number ofother conditions apply (if relevant, see the separate publication on these rules).

You can read more right here

Download