Nice to know about Danish taxation

Most pension income received from a U.S. source can under certain conditions be claimed only taxable in the U.S.

Rental income from a U.S. source is taxable both in the U.S. and Denmark with credit in the Danish income tax liability for paid U.S. income taxes. It is important to understand that even if an income is taxed in the U.S. under the DTA it might also be taxable in Denmark under the DTA (thus paying the difference between the Danish and U.S. income tax in Denmark).

Key employees and researchers  can  under certain conditions be taxed for up to 7 years under the 32,84 % flat rate expat taxation on salary income.

Municipality taxes being part of the progressive taxation are varying approx. 6 % from the cheapest to the most expensive municipality tax.

A special church tax of typically 1 % can be avoided when claiming this.

Positive capital income is taxed from 27-42 %. Negative capital income (e.g. interest expenses) has a tax reducing value of approx. 30 % but up to 42 % if a positive capital income is reduced by negative capital income but still remains a net positive capital income.

If you need professional advice and assistance on taxation at relocation to Denmark, please contact us at info@inwema.dk or on phone +45 31 69 3169. We are experienced and fully updated on the relevant tax issues.