If you fail to pay a reminder from the public authorities on time, your debt will be transferred for debt collection. The Danish Debt Collection Agency (Gældsstyrelsen) is responsible for collecting all debt owed to the public authorities.

Owed debt being collected by the Debt Collection Agency may be paid as a lump sum or in instalments. Please call us on (+45) 70 15 73 04 if you would like to pay your debt or would like an overview of the debt you owe to the public authorities.

If you would like an updated overview of your debt currently in the process of being collected, please call us on +45 70 15 73 04. We will then help you get an overview of what you owe and send you a debt summary.

Please note that this summary may contain debt that has not been calculated correctly or that has become statute-barred. This is due to faults in the debt collection system EFI in the period 2013 – 2015.

We review all debts on a regular basis and will contact you in case we discover a fault. You are welcome to contact us if you have any questions.

Please call us on (+45) 70 15 73 04 if you would like to pay off all or part of your debt.

We will then give you a payment ID to use when you pay your debt either by lump sum or by instalments.

Paying off debt from outside Denmark

You can make a payment by bank transfer from outside Denmark by using the following information:

  • BIC/SWIFT code: DABADKKK
  • IBAN: DK6102164069170749

Please state who is making the payment (civil registration number (CPR)/company registration number (CVR) and which debt the payment concerns.

If you disagree

If you disagree with the size or existence of the debt transferred for collection, you should contact the authority to which you owe the money. If you send your objections to the Danish Debt Collection Agency, we will send them to the authority believing to have a claim against you.

Interest

The interest charged on debt for collection is 8.05% per year (2018).

Interest is calculated from the first day of the month following the date when the debt was transferred to the Danish Debt Collection Agency. In the event of debt collection fees, interest is calculated from the first day of the month after the debt was incurred, however. You are not liable to pay interest on the interest accrued or interest on court fees and administrative costs.

Any interest charged is paid to the party who is owed money as compensation for the late payment. Any fees charged in connection with debt being collected, such as a fee for withholding pay, go to the Danish Debt Collection Agency. The same applies to interest on fees.

Where do you see how much interest has been added?

Private individuals can see any interest charged for the previous year in E-tax (our self-service facility – TastSelv) at skat.dk/tastselv. You log on to E-tax using your NemID or E-tax password.

Businesses can see any interest charged in E-tax for businesses at skat.dk/Skattekontoen. If you are a sole proprietorship, you can log on using your private NemID. Otherwise, you will need a NemID employee signature or E-tax password.

Deductions for interest

You are always entitled to a deduction for any interest charged in the year in which the debt occurred. This also applies to interest you have not paid. Your interest expenses are automatically reported to the Danish Tax Agency in the first income year.

In subsequent income years, you are only entitled to a deduction for interest expenses you have actually paid. You are responsible for reporting any interest expenses in E-tax for individuals. You only get a deduction for interest expenses if the debt in question does not concern interest for previous tax years.

See your interest deduction in your tax assessment notice (Danish only) and correct your interest expenses in your preliminary income assessment

Where can you see your deductions?

Private individuals can see their deductions in E-tax for individuals. You log on to E-tax using your NemID or E-tax password. Go to Box 348, Renteudgifter af offentlig gæld (interest on debt owed to public authorities). The box includes interest on debt owed to public authorities, which is collected by the Danish Debt Collection Agency.  

Exceptions

In case of debt where the interest rate was agreed by you and your local authority (for instance housing allowance loans), or where the interest rate is expressly stated in a loan document, you will remain liable to pay the agreed rate instead of the debt collection interest rate of 8.05 percent per year (2018).

Debt without interest

No interest is added to fines imposed under the Danish Penal Code.

The Danish Debt Collection Agency collects debt on behalf of those who are owed money by you, such as the Danish Tax Agency, the municipality, transport companies etc. If you fail to pay, we have different means to collect the money.

Offsetting debt against payouts

If you are owed money by the public authorities, such as tax refunds, this means that you may not be paid such amounts. Instead, the Danish Debt Collection Agency could use the money to pay off your debt. Any amounts left after offsetting your debt will be paid to you.

If you are owed money after we have offset your debt for the income year 2018, the excess amount will be paid into your NemKonto between 5 April 2019 and 1 September 2019. Unfortunately, it will not speed up your payment if you call us or pay off your debt quickly. However, if you pay off your debt, you will not have to pay interest on it.

You will receive a digital letter in e-Boks explaining how much we are offsetting and when we will pay out any money to you. If you have not signed up for Digital Post, you will receive a letter by mail.

Sometimes, you will receive more than one letter saying that we have offset your debt against a certain tax refund owing to you. The reason for this is that the Danish Debt Collection Agency is using two collection systems for a period of time and that you may have debt registered in the old as well as the new system. Please contact us if you would like an overview of all your debt. 

We may withhold some of your pay

If you fail to pay your debt, we may withhold some of your pay. Withholding your pay means that we can withhold part of your income, your salary or unemployment, sickness and parental leave benefits (dagpenge) for example, and use the amount we withhold to pay off your debt.

When we withhold some of your income, we increase the withholding rate on your tax card and as a result you will be paid less than normal. Before we decide to withhold some of your pay, we will notify you and tell you how much (the percentage) we will withhold, the rules authorising us to do so, your right to appeal, etc.

Read more about withholding of pay in Danish in our legal guide

We can seize your assets

If you are not paying off on your debt, we may seize your assets such as your house, machinery, etc. This means that we can sell your property by court order and use the money to bring down your debt.

If we send you a reminder or call you in for a meeting with our bailiff (notice of execution), you will be charged a fee. The fee for a reminder is DKK 140 and the fee for a notice of execution is DKK 450.

In cases where we do seize your goods, you will also be liable to pay court fees and any legal costs. 

Application for cancellation of debt to public authorities

In order to be eligible for debt cancellation, your debt must be of such a size that you are unable to repay it and that you are unlikely to be able to repay it in the next few years.

The Danish Debt Collection Agency (Gældsstyrelsen) makes an assessment based on your income, expenses, what you own and your debt. This assessment also considers how long the debt has existed, the origin of the debt and your repayment history.

Please find a guide for debt cancellation at the bottom of form 51.005: Application for cancellation of amounts due to public authorities (Ansøg om eftergivelse af skyldige beløb til det offentlige) (Link and application in Danish only). 

Debt to private creditors

Generally, if a significant part of your debt is owed to private creditors (such as a bank, a finance company or a charge card provider), you will normally be asked to apply for debt relief through the probate court.

In the probate court you may obtain a collective arrangement including all creditors. You can also contact your creditors personally in an attempt to obtain a collective arrangement. 

If you move away from Denmark to another country and you have a debt with public authorities of DKK 100 or more that has been transferred for collection, you need to inform the Danish Debt Collection Agency of your new address. You should inform us before you leave Denmark. 
If you change addresses after you leave Denmark, please inform us of your new address within two weeks of moving. 
If you fail to inform us in time, you may receive a fine.

Please call us on +45 72 37 45 96 to inform us of your new address outside Denmark.

Our phone lines are open:

Monday from 9-17
Tuesday-Thursday from 9-16
Friday from 9-14

When you call us, you will be asked the following:

  • Your full name

  • Your CPR number (civil registration no.)

  • Your old address and the Danish municipality you are moving away from

  • Your new address outside Denmark and new country of residence

  • Removal date

Please be aware that you may not have a duty to inform us of your new address in certain cases. You do not have an obligation to inform us of your new address if:

  • Your debt is less than DKK 100

  • You have signed up for Digital Post and you are staying abroad less than six months

  • You have set up a payment plan with us, which you observe.

Automated debt collection was suspended in September 2015 due to faults in our debt collection system (EFI) during the period 2013 – 2015.

The Danish Debt Collection Agency (Gældsstyrelsen) is currently looking into whether we have carried out incorrect debt collection of your or your business’s debt from 1 September 2013 to 7 September 2015 (both days included). The possible fault concerns the collection or voluntary payment of debt, which could have been statute-barred at the time of the collection or payment.

You will be informed via Digital Post by no later than 1 May 2018 if we are looking into your or your business’s debt.

If you have received a notification in Digital Post saying that we are looking into possible errors in our collection of your debt, you do not have to take any action. We will write to you again once we have carried out our investigation, and you will have the opportunity to provide us with any feedback you may have before we make the final decision. The Debt Collection Agency will only reopen any cases on its own initiative if the total amount collected or received is at least DKK 3,000.

If you have paid off an amount of your debt after it became statute-barred, this amount, including interest, will be transferred to your NemKonto unless you have other debt to public authorities. In that case, we may choose to use all or part of this amount to bring down your debt (offsetting). We will send you a letter in case we choose to offset your debts. 

Please see our Danish guidelines for information on how the Danish Debt Collection Agency reopens cases that may wrongly have been transferred for collection. 

The Danish Debt Collection Agency (Gældsstyrelsen) may offset any refund that you are due from the public authorities, such as a tax refund, against your debt. This is based on the information about your debt provided by your creditor. Your creditor is the public authority to whom you owe money.

When a creditor transfers your debt to the Debt Collection Agency, we receive various information about your debt, the amount of money you owe, the period, when the debt was established, when it should have been paid and the final due date.  We use this information to describe your debt in notifications or decisions about offsetting your debt against something else. We also use the information to check if the final due date of the debt has occurred before we offset any refunds against your debt.

Some claims may be registered with one or more dates that do not correspond with the description in the notification or decision from the Debt Collection Agency. These include the dates that relate to when the debt was established, the period, the due date and the final due date.

Please see our legal guide (in Danish) for further legal information.