Denmark is known for its high level of taxation. The tax cap in 2024 is. 52.07 percent., which is the maximum rate that can be deducted from income.
Researchers and highly paid employees can apply for permanent taxation of their income under the tax scheme for researcher (Danish Forskerskatteordningen)
The program aims to attract international talent to work in Denmark, especially in highly specialized sectors. The program makes Denmark more competitive in attracting international experts, while allowing them to work in Denmark at more favorable tax terms than the standard, much higher rates.
What taxes and for how long?
Employees registered in the program pay tax at the rate of 32,84% (27% plus labor market contributions) on earned income and certain employee benefits from a specific employer for a maximum of 7 years. However, the employee must meet a number of conditions.
Below are the most important general rules:
- A person wishing to be covered by this program must not have been subject to full or limited tax liability in Denmark in the past 10 years - in other words, he or she must not have worked here in the past 10 years before joining the program,
- If an employee moves to Denmark, he or she can move here at the earliest 1 month before the first day of work,
- The employee must not have, or have had within the last 5 years prior to employment, direct or indirect involvement in the management, control or significant influence over the company that employs him in Denmark,
- The employee must be taxable in Denmark at the time he or she begins working under the program,
Coverage under the program is possible only once in a lifetime, whereby 7 years can be divided into several periods, provided that the conditions for coverage are met in each individual period. All other income is taxable in accordance with general Danish tax regulations.
Additional rules for researchers:
- In order to be registered in the program as a researcher, approval is required for both the position of researcher and the qualification of researcher (equivalent to a doctoral degree). The approval is decided by the universities themselves and some public research institutions
- If employment takes place at a place that does not have the authority to make decisions on its own, the employee's position and qualifications must be approved by the Danish Free Research Foundation. This applies, for example, if the employment is at a university hospital or a private company. If the contract is changed, new approval must be obtained from the Danish Free Research Foundation (Danmarks Frie Forskningsfond).
Additional rules for highly paid employees:
In order to be registered in the program as a highly paid person, a monthly salary of at least DKK 78,000 in 2025. (DKK 75,100 in 2024) after ATP deduction. The amount is adjusted annually by indexation. The salary must be achieved as an average over the calendar year. In addition, the minimum wage must be guaranteed in the contract before the employee begins employment,.
For the calculation of remuneration as highly paid is taken into account:
- Current cash salary, including cash housing allowance,
- The value of a free donated car, phone, inernet, etc., and employer-paid health insurance,
Do you need help ?
If you need help , please contact us. Hotline +45 35 13 13 10 (8 a.m. - 6 p.m., Mon-Fri)
