Help your non-Danish employees get off to a good start managing their tax affairs in Denmark, such as being correctly registered, paying the correct amount of taxes and receiving the right tax deductions.

Please find a checklist for employees in English, GermanPolishLithuanian, RomanianItalian and Portuguese.

Checklist - Get your employee off to a good start

  • Your employee needs a personal tax number and a preliminary income assessment including a tax card. Please use our online application form.
  • Your employee needs a NemID. The local Citizen Service Centre (Borgerservice) will help you get one. It may be a good idea to bring an attesting witness. Remember to bring a passport or ID card.
  • Your employee needs a NemKonto. If you contact a Danish bank, they will help you. It is also possible to use a non-Danish account as a NemKonto. Read more.
  • As employer, you are responsible for retrieving your employee’s tax card in E-income. You will receive a letter with the personal tax number and date for when the tax card is available. The letter will be sent by Digital Post.

When you hire new employees from abroad, they are liable to pay tax in Denmark from the first day of work. This also applies to temporary employees such as seasonal workers and craftsmen. Depending on each employee’s personal and financial situation, they may be subject to different types of tax liability.

Help your non-Danish employees understand their tax liability

Four types of tax liability

For non-Danish employees

= Denmark= Home country

  • Working in Denmark
  • Residing in Denmark or staying in Denmark for more than six months
  • Personal and economic interests in Denmark
  • Possible spouse or cohabiting partner living in Denmark

= Full tax liability

  • Working in Denmark
  • Residing in your home country and often travelling to work between Denmark and your home country
  • Personal and economic interests in your home country
  • Possible spouse or cohabiting partner living in your home country

= Limited tax liability

  • Working in Denmark
  • Residing both in your home country and in Denmark
  • Personal and economic interests in your home country
  • Possible spouse or cohabiting partner living in your home country

= Dual residency - your home country is your place of residence

  • Working in Denmark
  • Residing both in your home country and in Denmark
  • Personal and economic interests in Denmark
  • Possible spouse or cohabiting partner living in Denmark

= Dual residency - Denmark is your place of residence

Declaring and paying salary

You must withhold A-tax and labour market contributions (am-bidrag) in E-income just like you do for your Danish employees. This also applies if the employee is running his own business in his home country and considers himself to be self-employed in relation to the work he will be doing for you. The Danish tax rules determine whether your non-Danish employee is considered an employee or self-employed. Employee, fee-based employee or commercial enterprise

Special rules

Tax on hiring employees from outside Denmark
If, as a Danish business, you hire an employee who lives outside Denmark and with a non-Danish employer, the employee is subject to the tax rules on international hiring-out of labour.

Hiring employees from outside Denmark

Cross-border worker rules
If more than 75%of the annual income is taxable in Denmark, it is sometimes possible to pay tax according to the cross-border worker rules. Please contact us if you have any questions in relation to the special rules.

Commercial drivers
If, as a Danish haulier, you have employed a driver who lives outside Denmark and who drives in and outside Denmark, the driver is, as a rule, only liable to pay tax in Denmark on the share of the pay related to his driving in Denmark. This means that the pay relating to driving in Denmark and the pay relating to driving outside Denmark must be reported separately in E-income.

Researchers and highly-paid employees
If you recruit researchers and highly-paid employees from outside Denmark, they can, under certain conditions, be employed under the Researchers and highly-paid employees’ scheme. Under this scheme, they pay a gross tax rate of 27% + labour market contributions, totalling 32.84%, for a period of seven years.

Researchers and key employees

The three most common types of tax relief are personal allowance, deduction for food and accommodation, and deduction for transport between home and work. Tax relief is also granted for Danish trade union fees and contributions to a Danish unemployment fund read more.

Personal allowance

As a general rule, everyone earning an income is entitled to a personal allowance. A personal allowance is relevant if your employee earns less than DKK 500,000 a year (annual income). You can calculate the annual income of seasonal workers and temporary employees by multiplying the monthly pay by 12. In the preliminary income assessment, we will choose the most favourable calculation for the employee.

Food and accommodation

If you do not pay food and accommodation for your employees, they are entitled to a tax deduction in case of:

  • temporary work, such as seasonal work in a strawberry field
  • changing workplace, such as construction sites
  • the employee not being able to stay overnight in his or her normal home

Read more on deductions and rates for food and accommodation.

Deduction for transport between home and work for non-Danish employees

Transport between your home and your work place:

Your non-Danish employees are entitled to the same deductions as your Danish employees.

Please read more about the deduction between home and work and calculate your deduction.

kørselsfradrag grafik

Transport between your home in your home country and your workplace:

Your tax liability dictates whether you are entitled to a deduction.

= Not entitled to a deduction= Entitled to a deduction

  • Working in Denmark
  • Residing in Denmark or staying in Denmark for more than six months
  • Personal and economic interests in Denmark
  • Possible spouse or cohabiting partner living in Denmark

= Full tax liability

  • Working in Denmark
  • Residing in your home country and often travelling to work between Denmark and your home country
  • Personal and economic interests in your home country
  • Possible spouse or cohabiting partner living in your home country

= Limited tax liability

  • Working in Denmark
  • Residing both in your home country and in Denmark
  • Personal and economic interests in your home country
  • Possible spouse or cohabiting partner living in your home country

= Dual residency - your home country is your place of residence

  • Working in Denmark
  • Residing both in your home country and in Denmark
  • Personal and economic interests in Denmark
  • Possible spouse or cohabiting partner living in Denmark

= Dual residency - Denmark is your place of residence

If your employee stops working for you and leaves Denmark, there are a few things you and your employee have to do.

Checklists - leaving Denmark

Please find checklists for employees in English, GermanPolishLithuanian, RomanianItalian and Portuguese.

Your checklist

  • Please call us on (+45) 72 22 28 92 so we can deregister the employee correctly. 
  • Holiday pay. As employer, you should report holiday pay in the last salary month.

Your employee's checklist

  • Check the tax assessment notice and fill in relevant forms:

    • Form 04.069. Should be completed if the non-Danish employee is subject to limited tax liability and has additional information to the tax assessment notice.
    • Form 04.009. Should be completed if the non-Danish employee is subject to limited tax liability.
    • Form 04.031. Should be completed if the employee is a cross-border worker and has additional information to the tax assessment notice.
    • Form 04.003. Should be completed if the non-Danish employee is subject to full tax liability or is a dual resident.
  • Deregister from the Danish National Register. If the employee has been registered, he or she should remember to deregister again by contacting the local Citizen Service Centre (Borgerservice).
  • Your employee should notify us of his or her new address.
  • NemKonto should still be active. NemKonto should not be closed until the employee has received the final tax assessment notice.

Please see our legal guide (in Danish) for further legal information.