Need to know

Favorable terms for people stationed in Denmark

Denmark has one of the highest personal income tax rates in Europe.

However, certain regulations favour expat workers:

  • The 26% tax scheme means that key employees and researchers recruited abroad can obtain a significantly lower tax rate on their gross wages the first five years of residence in Denmark.
  • The 26 % are calculated after a gross tax at (% so the effective tax rate is 31,92 %.
  • There are some conditions there have to be met.
  • The most important once are:
    – A gross income per month that exceeds DKK 62.300
    – You must not have been full or limited taxable to Denmark in 10 years before this Tax Scheme can be used