International tax covers situations where there are international conditions or activities. This can be, for example, if you live or work abroad, have income, property, or a company in another country, or move to or from Denmark. The purpose of the rules is to ensure correct taxation and to avoid the same income being taxed in multiple countries, including through the use of double taxation agreements.

You become liable to tax in another country if you have:

A double taxation agreement is an agreement between Denmark and another country that determines which country has the right to tax different types of income, such as wages, pensions, interest and dividends. The purpose of the agreement is to avoid double taxation and create clarity on how income should be taxed when a person or company has connections to several countries.

If you are fully liable to tax in Denmark, you must generally inform the Danish Tax Agency (skattestyrelsen) about all foreign pension schemes, regardless of whether payments are already being made or not. The information is typically provided via an L-declaration, which describes the type, value and payment terms of the scheme. When payments are made from a foreign pension scheme, the amounts are generally taxed as personal income in Denmark. The payments are added to your other income and taxed according to the general rules and rates for income tax. In certain cases, a double taxation agreement with the country where the pension scheme is established may affect taxation or entitle you to relief.

If you are fully liable to tax in Denmark, you are obliged to report all foreign securities to the Danish Tax Agency. This applies regardless of whether they are shares, bonds or investment certificates, and regardless of whether the securities are held in a Danish or foreign custody account. The reporting includes, among other things:

If you are fully liable to tax in Denmark and own real estate abroad, the property must be reported to the Danish Tax Agency. You are still liable to tax in Denmark on the income and any increases in value that the property generates – even if the property is located in another country. However, any double taxation can be reduced. Taxation depends on how the property is used:

LL § 33 A and § 33 are provisions in the Taxation Act that allow for relief or exemption from Danish tax on income earned from work abroad, if certain conditions are met. LL § 33 A allows for full tax exemption for income earned from work abroad. The scheme requires, among other things, that the stay abroad is continuous and has a certain minimum duration, and that the work is not performed for the Danish state. LL § 33 allows for partial (half) tax exemption if the conditions for full exemption under § 33 A are not met. The conditions for the application of §§ 33 A and § 33 are strict and depend, among other things, on the duration of the stay, the nature of the work and the employee's overall connection to Denmark. Disclaimer As the above is for guidance purposes only, we accept no liability for decisions that may be made based on the above without prior individual advice. We accept no liability for errors and omissions.

SkatteInform can help you clarify tax liability and double taxation, calculate and report international income and property, and advise on moving to or from Denmark and on international company activities.