Easier access to highly skilled labour

24 April 2014

The Danish government proposes to lower the minimum salary requirement for foreigners taxed according to the special 26 pct. tax scheme.

The Danish government has launched a proposition to reform international recruitment called ”Easier access to highly skilled labour”.

The aim of the reform is to strengthen Danish enterprises in international competition.

The reform proposal contains 7 items which all aim at attracting qualified foreign labour and to make it more attractive for foreign students to stay on in Denmark and contribute to the Danish community after having completed their studies.

One aspect of the reform comprises a reduction of the minimum salary required in order to use the special Danish 26 pct. tax scheme available to foreign specialists under certain conditions.

According to the proposal, the monthly minimum salary requirement for foreign specialists taxed according to the special Danish 26 pct. tax scheme should be reduced by DKK 10,000 meaning that the monthly minimum salary requirement would be reduced from DKK 70,600 to DKK 60,600.

The proposal also changes the rules on residence/work permits.

Further, the proposition contains a new ”fast-track arrangement” that will make it possible for salary earners from 3rd countries to start working in Denmark as soon as application for residence/work permit has been filed and the application fee has been paid.

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.