ExpatBriefing: Denmark To Extend Tax Breaks For Skilled Foreigners

By Hans Esser, for ExpatBriefing.com 24 August, 2017

The Confederation of Danish Industry has welcomed an announcement by a government minister that a special tax scheme for certain skilled expat workers will be improved.

The Danish "research tax scheme" allows foreign workers meeting certain requirements to pay tax in Denmark at a concessionary rate of 26 percent, plus an eight percent labor market contribution, which covers unemployment and sickness benefits, among other items.

Currently, foreign workers can avail themselves of the scheme for a maximum period of five years. However, Minister for Industry, Business, and Financial Affairs Brian Mikkelsen recently told Danish newspaper Berlingske Tidende that the Government will extend the maximum period within which the tax concession can be claimed to seven years, although the tax rate will be increased to 27 percent to offset the cost of the measure.

Commenting on the announcement, Kent Damsgaard, Deputy Director of the DI, described the proposal as "very sensible" for two main reasons.

"Firstly, because companies have a great need for highly skilled labor, and this proposal will make it easier to attract and retain employees," he said.

"Secondly, because an extension of the scheme will increase the chance of foreigners staying in Denmark even once they are no longer covered by the scheme," he added.

Damsgaard said he hoped that other aspects of the scheme will also be liberalized by the Government to attract skilled foreign workers and expats to Denmark.

"For example, as a foreigner, you are excluded from the scheme if you have earned even the slightest amount of taxable income in Denmark within the past 10 years. But it is precisely people like this, who have already experienced Denmark, who are most likely to try out a permanent job here," he observed.

"Moreover, it does not make sense that the scheme prevents foreign entrepreneurs and owner-managers from moving their company to Denmark and taking advantage of the scheme. We need those people as well,"

Tags: Expatriates | Tax | Denmark | Entrepreneurs | Employees | Unemployment | Individual Income Tax | Expats |

 





News Archive

RECENT NEWS

How Empathy In The Workplace Boosts Employee Wellbeing And Productivity

Workplaces are changing rapidly to meet new challenges and new ways of working. Nyenrode Business University explains ho... Read more

What The End Of The Partial Non-resident Tax Liability Means For You

Since the start of 2025, those receiving the 30% ruling can no longer declare themselves as partial non-residents of the... Read more

3 Things Every Expat Should Know About Giving Birth In The Netherlands

Navigating pregnancy and childbirth in a new country can feel overwhelming, especially when the systems and cultural pra... Read more

Starting A Business In The Netherlands: 30% Ruling And Tax Structures

Starting your own business or going freelance in the Netherlands means thinking about tax. Different tax structures will... Read more

How The Dutch Housing Market Is Helping First-time Buyers

The government has been taking a number of steps to help youngsters get a foot on the housing ladder, and now it seems t... Read more

Tax Season Has Started: All You Need To Know About Your Tax Return

In this article, Erik Jan Peffer from Taxt explains important information about your Dutch tax return, and all the infor... Read more

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy.