The Danish Tax Scheme for Foreign Researchers and Highly-Paid Employees (forskerordningen)

Forskudsopgørelse 2022
Dannebrog

The purpose of the tax scheme for researchers is to get highly paid people motivated to apply for a job in Denmark and to help Danish companies hire well-educated and high-profile workers from foreign countries.

The tax scheme for researchers can be used by people who has not been tax liable in Denmark in the past 10 years. This condition is important and includes most types of income. Furthermore, it is important whether you have been registered as being tax liable to Denmark, regardless of there has been an actual income or not (e.g., if you have forgotten to register you moving out of Denmark).

The tax scheme for researchers can be used by people who has never lived in Denmark and by people who has not lived in Denmark in at least 10 years.

To be able to use the tax scheme for researchers it is required that you have a paid job with a gross salary of at least 72,500 after ATP and after deduction of unpaid vacation if there is no accrued leave.

Finally there is a number of formalities regarding registration that must be met.

If you meet the criteria for the tax scheme there are usually major advantages for most people. You then have 7 years with a flat taxation of 27% + AM-contribution = total 32,84% tax (the 27% is deducted after AM-contribution). You have to live with the fact that there are no deductions when using the tax scheme – but most people can live with that when the tax is below 33% overall.

Please do not hesitate to contact us for guidance regarding the Danish tax scheme for foreign researchers and highly paid employees.