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WORK IN DENMARK

 

Taxes in Denmark are high but so are the wages. The Danish taxes fund one of the strongest welfare systems in the world.

Denmark is a welfare state. Among other things, this means that Danes pay taxes to ensure that a series of critical services such as medical care, hospital treatment, schooling and eldercare are not only for those who can afford them.

The Danish tax system makes these services free in the sense that they are either funded by taxes or subsidised by the state.

Tax on income

All employees pay a percentage of their income in taxes and Danes are the highest taxed population in Europe. To compensate for the high taxes, Danish salary levels are among the highest in world. And taking into account that many of the welfare service that strain household budgets are free in Denmark, the purchasing power in the Danish capital Copenhagen equals that of other major European cities.

How to pay taxes

As soon as you start working in Denmark you must pay taxes. In order to do this, you need to apply for a tax card at the Danish tax authorities (SKAT).

As soon as you are registered correctly, your employer takes care of the rest of process.

Tax for researchers and highly paid employees

Highly skilled professionals are of great value to the Danish labour market. And because of this, foreign researchers and highly paid employees can obtain a special low tax rate for a period of 60 months if they meet a number of certain conditions. More information on the tax scheme for foreign researchers and highly paid employees can be obtained through the Danish tax authorities (SKAT) homepage under the section "Coming to work or live".

Tax advice at ICS

The tax authorities is a part of International Citizen Service (ICS)

Tax

Learn more about the Danish tax system and tax registration at the Danish tax authorities' homepage (SKAT).