Taxation in Denmark
With a corporate tax rate of 22% and a unique no double taxation rule, Greater Copenhagen is ideal for a Scandinavian headquarters and for Nordic expansion.
Denmark's tax rate below OECD and EU level
The corporate tax rate in Denmark is 22%, placing Denmark below the average OECD and EU level.
Uniquely among the Nordic countries, Denmark has no double taxation for Danish companies with branches abroad. As a result, Greater Copenhagen is a highly attractive location for establishing a Nordic headquarters and for Scandinavian expansion.
Denmark offers highly competitive labour costs. Employers in Denmark pay the world’s lowest social contribution rate; less than one percent per employee per year (maximum 1,350 Euro), including pension schemes, healthcare insurance and holiday pay,
Attractive tax schemes for foreign researchers and key employees is also among the tax advantages in Denmark.
Key tax advantages:
• Corporate tax rate of 22%.
• Full tax rebate of R&D expenses.
• Full tax rebate of interest arising from acquisitions.
• Corporate tax is paid after deduction of expenses.
• No double taxation for Danish companies with branches abroad.
• No additional local tax, franchise tax or net wealth tax.
• No capital duty or share transfer duty.
• Unlimited loss carry forward.
• Attractive holding company tax scheme.
• Special expat tax scheme for foreign researchers and key employees.
• Employer-funded employee benefit costs are the lowest in Europe.