You can choose to be taxed according to the rules for cross-border workers if:

  • you are subject to limited tax liability in Denmark and earn at least 75% of your total income in Denmark.

  • you are subject to full tax liability (dual residency) and considered to be domiciled for tax purposes in your home country and you earn at least 75% of your total income in Denmark.

If you choose to be taxed according to the rules for cross-border workers, you are entitled to deduct a number of personal and family-related expenses. And you are entitled to deduct certain expenses related to your income in Denmark.

In certain cases the cross-border workers rules may not be beneficial to you. If, for example, you have income from shares and you choose to be taxed according to the rules for cross-border workers, there will be a change in the way you are taxed on dividend income and royalties. Such income will no longer be taxed according to the gross taxation scheme but according to the ordinary rules for individuals subject to full tax liability. If Denmark has entered into a double taxation agreement with your country of residence and the two countries have agreed on a maximum tax rate, you will be taxed according to such agreements.

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

www.skat.dk is your access to the self-service system and guides on taxes and duties of the Danish Customs and Tax Administration