New rules on Danish tax residence for individuals are postponed

25 May 2018

Anders Kiærskou, Manager, Tax |

Non-resident individuals owning real property located in Denmark must wait a bit longer before knowing, how their Danish tax position will be in the future.

As described in the March 2018 issue of tax:watch, the government recently proposed new rules on Danish tax residence for individuals.

Originally, the plan was for the bill to be proposed to and adopted by the Danish parliament before the end of session of the parliament this summer.

However, due to the many comments and objections received by the Minister of Taxation concerning the draft bill, the Minister of Taxation has decided to postpone the bill until autumn, when the Danish parliament reconvenes.

The objections have mainly focused on non-resident individuals living in low or zero tax jurisdictions owning a second home in Denmark.

According to the proposed draft bill, such individuals could suddenly risk exposure to Danish tax on their global income regardless of the length of their stay in Denmark.

In connection with the postponement, the Minister of Taxation expressed that he expects the final bill will be amended in order to better accommodate companies expatriating employees to work abroad.

The above article is taken from tax:watch, our electronic English newsletter on Danish Tax and VAT matters. tax:watch is issued on the last Friday of each month and is free of charge. Please sign up here.