Taxation of Inbound Expats in Denmark

Can your income taxation be optimized? 

The intention of this newsletter is to clarify whether you can avoid the Danish regular income taxation. In order to do so your tax status in your home country and in Denmark should be investigated. Further it should be investigated if you can seek protection against unlimited Danish taxation due to special tax rules or a double taxation agreement.

If this is not the case it should be investigated if your can avoid regular Danish income taxation and instead limit the taxation to one of the special Danish expat taxation schemes. Among these are the 26 % flat rate taxation for highly salaried expats, the special 26% taxation for scientists and researchers connected to approved projects, expats employed by international organisations, individuals employed by their home country government or other individuals with special immunities and privileges.

If you cannot avoid the regular Danish income taxation the structure of your remuneration or salary package is important. Taking advantage of tax-free travel allowances, tax deductions and other tax saving elements should be considered.

The Danish tax system is complex and with high tax rates so planning is needed to reduce the effective taxation.

Inwema can help you if you want to optimize your taxation while living in Denmark. Please do not hesitate to contact us at