Pensions from abroad
When you live in Denmark you are tax liable of you global income. This is the general rule. But if you live in Denmark or you move to Denmark and have pension savings from work done outside Denmark, the income has often been earned when you were not tax liable to Denmark. This is often subject to complicated tax problems that are regulated in the national Danish legislation (because you live here), the tax legislation in the country of origin and – very often – detailed regulation in the DTA between the countries.
First of all you are obliges to register your pensions when you move to Denmark. This is done at the 49.020 form, declaration L. On this form you inform the tax authorities about your pensions funds outside Denmark. Some of them will hereafter be taxable.
Public pensions are in general taxed in the country of origin. The Danish taxation is depending on the DTA and type of pension.
In general an after-tax pension from abroad is not taxed in Denmark. However the development I value is in general taxed each year – regardless the taxation og non-taxation in the country of source.
If a pension is a pre-tax pension the legislation can be quite complicated, and the Danish taxation will depend on the national taxation in the country of source and on the DTA – and on the specific type of pension. In many cases taxation to Denmark can be avoided or exempted under the exemption rules and therefore not or almost not taxed in Denmark.
Taxation of foreign pensions is often complicated, and most people will in the first year need professional help to clarify the taxation and reporting. At PrivatRevision we are able to help you with clarification. Often we need to navigate in domestic laws, DTAs and verdicts from the Tax Council or from the courts. And often we choose in corporation with our client to secure the (non-) taxation with a binding ruling covering the exact situation and tax payer.