If you worked in any of these countries, you could be due a Tax Refund

Everything foreigners need to know about taxes in Denmark

#TaxTipsDenmark

Are you working in Denmark as a non-resident? 

If that’s the case, coming to terms with the local tax system is crucial, although it’s probably the last thing on your mind.

As in other countries, the tax legislation in Denmark is complicated and has numerous regulations and laws.

This guide will discuss everything you need to know about tax if you are a foreigner in Denmark.


First things first.

The Danish income taxes are the primary source of funding for the welfare system of the country. Denmark’s social security system covers sick benefits, health insurance, maternity and paternity leave, family benefits, injury insurance and pensions. 

For foreigners, there is a minimum period of residence requirement to receive some of these benefits. 

EU, EEA nationals and other foreigners who are living and working in Denmark on a temporary basis can choose to be covered by the social security system in their home country if it has a social security agreement with Denmark. 

Everyone should receive letters from the Danish tax authorities (Skattestyrelsen) twice a year. 

Useful Denmark Tax Facts:

  • The tax year in Denmark is from January 1 until December 31

  • Danish tax refunds often take around 3-4 months to process

  • Your Årsopgørelse is the official government document you receive from the Danish tax authorities

  • The average Danish tax refund our customers receive is €1200

Tax liability for non-Danish employees

Your tax liability depends on a variety of different factors, such as whether you have a residence in your home country. It determines the deductions you are entitled to. 

If you are a foreigner who is working and living in Denmark for a certain period of time, a specific tax regime might be applied. 

There are four types of tax liabilities for non-Danish employees

1. Full tax liability

·         Working in Denmark

·         Living in Denmark or staying in Denmark for more than 6 months

·         Economic and personal interests in Denmark

·         A spouse or a partner living in Denmark

2. Limited tax liability

·         Working in Denmark

·         Living in your home country but travelling often between Denmark and your own country

·         Economic and personal interests in your home country

·         A spouse or a partner living in your home country

3. Dual residency, your home country is your primary place of residence 

·         Working in Denmark

·         Living both in Denmark and your home country

·         Economic and personal interests in your home country

·         Spouse or a partner living in your home country 

  4. Dual residency, Denmark is your primary place of residence

·         Working in Denmark

·         Living both in Denmark and your home country

·         Economic and personal interests in Denmark

·         Spouse or a partner living in Denmark


Applying for a tax card and a personal tax number in Denmark

You should be registered so that you can work and pay tax in Denmark.

If you are working there, you will need to apply for a tax card and a personal tax number. You can get them online on the site of the Danish tax authorities. 

If you are intending to stay more than three months, you will have to get a CPR number (civil registration number) which is crucial for your interaction with the authorities. 

There is an exception to this rule, and if you are a citizen from the EU, EEA countries or Switzerland you will have to acquire this number in 6 months. 

Besides this, you also must have a digital signature - NemID. You will need to use it for the Danish internet banks, government websites, self-service system, etc. 

Registering your earnings

If you are working in Denmark, you must pay income tax. Your employer will have your tax card and tax will be taken from your earnings automatically. 

How to submit your tax return and pay your tax?

In Denmark, most taxpayers don’t even need to submit a tax return because all the needed information has already been submitted automatically to the authorities. 

You must receive an annual statement in March which will have the information that the Danish tax authorities will gather for you from employers, banks, pension funds and others. 

You will only need to make changes to this tax assessment notice if the information provided there is not correct.

 There are two documents that are crucial for your tax affairs:

Preliminary assessment of your earnings

The preliminary income assessment (forskudsopgørelse) is something like your budget for the current year. It will show the income you are earning, tax rates, allowances and deductions. 

It’s important to remember that if your situation changes, you should change this assessment.

Tax assessment notice

Your tax assessment notice (årsopgørelse) is a recap showing your income, deductions, allowances and tax paid for the previous year. 

You have an option to change your tax assessment online in E-tax (TastSelv), which is the Danish online self-service facility. 

Work-related deductions

You are entitled to certain deductions that are announced in your tax assessment.

Accommodation and food

If your food and accommodation are not covered by your employer, you may be entitled to this deduction if:

  • your employment is temporary

  • your place of employment changes (different buildings, for instance)

  • Because of the distance between your job and home, you are unable to stay at home

Your non-Danish income must be registered

If there is a tax agreement between your home country and Denmark you will avoid double taxation and this will regulate the tax you have to pay. 

When you quit your job in Denmark

When you end your employment and/or leave Denmark, you must notify the Danish tax agency because this will help in the calculation of your tax liability. 

You may need to check the different forms that you will need to complete on the site of the Danish tax authorities. 

You will have to deregister from the Danish National Register from the local Citizen Service Centre (if you have been entered there) when you leave the country. 

Tax refund from Denmark

Did you know that everyone who has worked in Denmark in the past three years is able to apply for a Danish tax refund?

It’s a complex and bureaucratic process to get your refund and you must understand the process very well so that you can get the maximum sum that you are owed. 

You could be due a tax refund from Denmark if:

  • you worked on a short-term contract

  • you paid for accommodation and food there

  • you  were a resident in your home country, while you were employed in Denmark

You can use for free our online Danish tax refund calculator to find out how much you are owed. 

Our customers get an average Danish tax refund of €1200. There’s nothing to lose, just a potential tax refund to gain!


Holiday money (Feriepenge) refunds from Denmark

You will automatically get the right to holiday money when you work for a Danish employer. It can be paid when you take your holiday the next year. 

If you have left the country before the start of the holidays, the Danish National Fund for Holiday Pay (FerieKonto) will manage your money.

If this is the case, you should receive a letter which will tell you:

  • how much money you are owed

  • which is the employer that has paid this

  • how many holiday days you have

If you have received the Notice of Assessment (Arsopgørelse), we can check on your behalf if it can be objected, so that you can receive your money back

Why choose Taxback.com?

About The Author

Kristina Valcheva - Digital content writer @ Taxback.com

Kristina is a digital content writer at Taxback.com. She has a strong interest in finance and technology, and her background is in media, journalism and sales.

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