27% tax

A tax rate of just 27% may sound like a utopia to most – but this is in fact what Denmark offers to certain highly paid employees and researchers recruited from abroad.

To qualify for the scheme, several conditions must be met. These may include:

• Meeting the minimum salary requirement (not applicable to researchers)

• Taxation of other personal income

• Taxable value of employer-provided housing

• Time limitation and transition to general tax rules

• Change of employer during the stay

• Handling and filing of tax returns

• Assessment of full or limited tax liability in Denmark

The 27% tax rate applies for up to 84 months. After this period, the employee may continue to reside in Denmark and will then be taxed under the general rules – typically at a higher rate. There is no retroactive taxation of income earned under the scheme, even if the stay exceeds the 84-month limit.

If you have any questions regarding your specific circumstances, you are welcome to contact one of our tax specialists for a non-binding consultation.