General rules for cross-border workers
You can choose to be taxed according to the rules for cross-border workers if:
- you're subject to limited tax liability in Denmark and earn at least 75% of your total income in Denmark.
- you're subject to full tax liability (dual residence) and considered to be domiciled for tax purposes in your home country and you earn at least 75% of your total income in Denmark.
If you choose to be taxed according to the rules for cross-border workers, you are entitled to deduct a number of personal and family-related expenses.
When not to apply the cross-border worker rules
In certain cases the cross-border workers rules may not be beneficial to you.
If, for example, you have income from shares and you choose to be taxed according to the rules for cross-border workers, there will be a change in the way you are taxed on dividend income and royalties. Such income will no longer be taxed according to the gross taxation scheme but according to the ordinary rules for individuals subject to full tax liability.
If Denmark has entered into a double taxation agreement with your country of residence and the two countries have agreed on a maximum tax rate, you can be taxed according to such agreements.
Countries that have entered into a double taxation agreement with Denmark (In Danish) (skm.dk)
For further legal information in Danish see our legal guide .