If you have income from Denmark without living here, you may be subject to limited tax liability to Denmark. This implies that you are taxable on your Danish income but that you remain fully tax-liable in another country. The income may be in the form of, for example, pay or fees for work performed in this country, fringe benefits or pensions.
The lowest overall tax rate for taxpayers subject to limited tax liability is 36% (in 2014).
If you own real property in Denmark without having your permanent address in this country, you will also be subject to limited tax liability. You will then be paying property value tax.
Personal allowance
Persons having limited tax liability and receiving pay etc. for work performed in this country are entitled to a personal allowance if the income period represents an entire income year. If you work in Denmark for a period of less than one year, you can choose to have your income converted into income for the full year and combined with your Danish personal allowance. If you do not choose this option, you will be taxed according to current rules, i.e. on the basis of the actual income earned while in Denmark, but your personal allowance will not be used.
If you wish to have your income converted into income for the full year and combined with your personal allowance, you should tick box 69 in the tax return for taxpayers with limited tax liability. You can do so in E-tax (our self-service system - TastSelv) under 'Ret årsopgørelsen/selvangivelsen' (Change tax assessment notice/tax return).
Cross-border workers etc.
If you live in another country but work in Denmark and travel back and forth regularly, you are considered a cross-border worker. If, as a cross-border worker, you earn most of your income (at least 75%) in Denmark, you are entitled to tax deductions and allowances for expenditure incurred in connection with personal and family circumstances (such as interest expenses, maintenance payments and unemployment fund fees) to the same extent as persons subject to full tax liability with their permanent address in Denmark.
You will then need to enter supplementary information in the 'Grænsegængerdata' (Cross-border) section of your tax assessment notice/tax return. You do so by logging on to our self-service system E-tax (TastSelv) and selecting 'Ret årsopgørelse/selvangivelse' (Change tax assessment notice/tax return). If you have difficulties using E-tax, you may alternatively complete the paper tax return for taxpayers with limited tax liability (form no. 04.009) and, if needed (for example if you did not receive a tax assessment notice), the supplement to tax return for taxpayers with limited tax liability (form no. 04.031).
Form 04.009 Tax return for taxpayers with limited tax liability
Form 04.031upplement to the tax return for taxpayers with limited tax liability
Double housekeeping
If you are temporarily resident and working in Denmark and, at the same time, maintaining a dwelling for your family back home, you can claim a double housekeeping allowance, provided that you are subject to full taxation in Denmark.
An allowance will be granted for the initial 12 months counting from the time of your moving to Denmark.
For further information, please see
Travel deduction and tax-free allowance
You are entitled to the allowance if you are married or have a regular cohabitee and have had so for at least one year. In the case of marriage or cohabitation for less than one year, the allowance may be granted on the basis of a specific evaluation. Your spouse/cohabitee need not necessarily be tax-liable in Denmark for you to be granted the allowance.