Denmark


Introduction

Uniglo Financial can provide a comprehensive range of Umbrella solutions in Denmark. The individual is treated as an employee of our local partnering company.

It is important to use experienced local providers for Immigration, Payroll and Taxation to be sure of compliance and reliability. We will be able to assist you with: Contractors Tax and Work Visas for Freelancers to ensure that you comply with local regulations and maximize your net income.

Immigration

Nationals of the EU/EEA Member States, including nationals of the new Member States, and Switzerland are able to work without restriction in Denmark.

For all other nationalities a work permit must be acquired and it is fair to say that the expansion of the EU has made obtaining a permit in Denmark for non-EU/EEA nationals even more difficult.

To obtain a work permit:

The application can be made via a Danish agency in the applicant’s homeland, or in the country where the applicant has been resident for the past three months. The length of time required to reach a decision is highly dependent on whether the application includes all the correct documentation.

Tax residency

  • if they permanently reside or are present in Denmark for longer than six months,
  • if they have an abode in Denmark.

Income Tax bands

Danish law states that any contract entered into after 19 September 2012 is subject to the hiringout of labor tax law. Under this law, there are several important provisions from the perspective of a contractor working in Denmark:

  • • Employees living in Denmark and having an employer abroad who hires them out to a Danish enterprise cannot use the rules on international hiringout of labour. The Danish enterprise that has hired them must withhold their tax according to general Danish tax rules.
  • • If an employee, not living in Denmark, has an employer from another country than Denmark who is hiring him out on a contract to a Danish enterprise, the employee is liable to pay tax according to the rules on international hiringout of labour.

This means that the employee is liable to pay 8% labour market contributions and 30% hiringout of labour tax. Danish enterprises hiring labour from abroad have to ensure that the tax is paid.

Social security

Residents and non-residents working in Denmark are required to pay social security contributions on their gross salary in Denmark or in the country of their employer after an A1 has been issued.Employees pay an ATP contribution of DKK 900 DKK per annum(average)

How much can I take home?

Please contact our Danish specialist who will discuss your personal circumstances with you and help you minimise your tax and social security liabilities, within the bounds of Danish legislation.