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Tax when you live or work in Denmark

When you reside in Denmark, you are also liable to taxation. The Danish tax system contains many rules and laws, and even though you do not need to know all of them, you will inevitably have to know something about the tax system. Almost all young people and adults living in Denmark pay tax, irrespective of whether they have a job, are students, are unemployed, or receive money from the State or a Municipality. Twice a year, everybody receives letters from the Danish tax authorities – Skattestyrelsen – asking them to check and approve figures.

Why do we pay tax?

The Danish society is known as a so-called welfare society where politicians make efforts to ensure the welfare of citizens, financed by taxes. The Danish welfare society is, among other things, based on the concept of citizens having equal access to the different services paid for by taxes.

The tax rate in Denmark is one of the highest in the world, as Denmark has a very large public sector. The public sector covers many things that people in other countries often have to pay for themselves or that may not even be available to the public.

Who pays tax?

All citizens living in Denmark must pay tax if they have an income.

All citizens use the public sector in one way or another and as a general principle, all citizens must thus help pay for it. However, the tax burden is not equal for all as the Danish tax system is progressive, meaning that the higher your income - the higher the amount of tax that you have to pay.

Below you can find some useful links:

Taxes for Researchers and Key Employees

Foreign researchers and key employees may be eligible for 25 or 30 per cent taxation in Denmark. To qualify, however, you must fulfill certain criteria.

E-tax (TastSelv)

In Denmark all citizens have an electronic tax folder, which you access via an e-tax system (TastSelv).

Deductibles and Allowances

Here you can find examples of tax deductions and allowances to which you are entitled, as well as pension plans. 

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