The Expat Tax Scheme in Denmark: A Complete Guide for Foreign Professionals

Moving to Denmark as an expat brings exciting career opportunities, but it also comes with a unique tax landscape. Denmark’s Expat Tax Scheme offers foreign professionals a simplified, lower tax rate for a limited time, designed to attract highly skilled talent from abroad. This guide breaks down everything expats need to know about the Expat Tax Scheme in Denmark, from eligibility and tax rates to benefits and requirements.

1/22/20252 min read

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What is the Danish Expat Tax scheme?

The Danish Expat Tax Scheme is a tax incentive program aimed at attracting highly skilled foreign professionals to Denmark. Qualified Expats can benefit from a lower tax rate for a period, making it financially appealing for those relocating for work. The scheme reduces Denmark’s otherwise high-income tax structure by offering a reduced rate tax rate.

What is the benefits of the Danish Expat Tax Scheme?

The Danish Expat Tax Scheme provides Expats an opportunity to get more out of their salary to fulfill the individual financial goals. This is what makes it appealing:

Lower Tax Rate: Under the scheme, Expats are taxed at a rate of 32.84 % (27 % plus 8% labor market contribution) on gross income up to seven years, which is considerably lower than Denmark’s regular progressive tax rates.
Enhanced Savings or lifestyle: Lower tax rates mean more take-home pay, which can be used for savings, investment, or enhancing your lifestyle in Denmark.

How do I become eligible for the Danish Expat Tax Scheme?

The Danish Expat Tax Scheme can be used by high-earning professionals and researchers. To qualify for the Danish Tax Expat Scheme as High-earning professional you must meet following criterias:

Never used the scheme: It's only possible to be covered by the scheme once i a lifetime. The 7 years can be split several periods given the requirements are met in the individual period.
Residency Requirement: You must be considered a resident of Denmark for tax purposes during the time you apply and use the scheme.
Minimum Salary: The employee must receive a minimum monthly salary of DKK 78,000 in 2025 (DKK 75,100 in 2024) after deduction of labour market supplementary pension fund (ATP) contributions of 8 %. The amount is indexed annually. Non-guaranteed pay components, such as bonuses, cannot be included.
No Prior Danish Tax Residency: In general, you must not have been full or limited tax liable in Denmark within the past 10 years.
Earliest moving day: You should earliest move to Denmark 1 month before the first working day
Employment Type: You must be employed by a Danish company or be on assignment with a Danish employer.

It’s essential to check the latest requirements as they can change based on Denmark’s economic policies and goals for attracting foreign talent.