You Live and Work Abroad

In some cases, when you live and work abroad, you can still be taxable to Denmark. If you have not left Denmark with a "moving out certificate" from the Danish Tax Authority, you will still be registered as a full taxpayer to Denmark. Thus, you will be taxed based on the global income principle including your foreign income.

There may also be a situation where you cannot avoid full tax liability to Denmark because you have available housing in Denmark. If you still want to relocate, the Danish Tax Authority requires you to either resign your rental home or sell your home. If you rent out your home, the rental must be non-cancellable on your part for at least 3 years, so that you have no taxable disposal of your home for tax purposes. If you fulfill the conditions, your full tax liability to Denmark may be terminated.

However, you will still be subject to limited tax liability on certain income from Denmark. These incomes may include:

Board fees from a Danish company
Income from rental property in Denmark
State education grants and pensions from Denmark
Danish company with permanent establishment in this country. As a starting point, you are liable for tax on any profits in Denmark

Exit Tax

If you have assets in Denmark - e.g. shares with a value of more than 100 000 DKK, you can choose whether you want to pay capital gains on shares tax, also called exit tax; or apply to join a deferred tax scheme. With the deferral scheme, you can defer payment of your capital gains on shares tax, or if you plan to return to Denmark after relocating abroad.

You can always contact us for a free, no-obligations quote. We would like to talk about how we can help you and what solutions you need.

If you want to be contacted by SkatteInform State-Authorised Accounting Partnership, CVR no. 35394206, please use our contact form below. Your personal data will be processed in accordance with the Personal Data Regulation. You will be contacted for the best possible response to your inquiry.