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Hiring employees from outside Denmark

If a Danish business hires an employee who doesn’t live in Denmark and whose employer is non-Danish, the employee is taxed according to the rules on international hiring-out of labour. As a result, the business/you are responsible for paying the relevant tax.

The tax is 8% labour market contribution (AM-bidrag) and 30% hiring-out of labour tax.

The rules on hiring-out of labour apply even though the non-Danish employer is registered for VAT in Denmark.

Guide: Is it international hiring-out of labour or contract-based employment?

For further legal information in Danish see our legal guide .