If you live in Denmark, you generally pay Danish tax on payments from non-Danish pension schemes. However, the tax liability depends on whether Denmark has signed a double taxation agreement with the relevant country. Moreover, the type of pension scheme also matters.

Non-Danish pension payments are not automatically included in your tax return. As a result, please enter such information in your tax return for non-Danish income. There are three types of pension schemes:

  • Social pension, such as state pension, early retirement pension, the Danish Labour Market Supplementary Pension Scheme (ATP).
  • Personal pension, such as pension accrued as part of your employment or private pension contributions paid into a bank/an insurance company.
  • Public pension, such as when you have been employed by the state, including civil service pension.

According to Danish legislation, a state or social pension can be a mandatory or optional scheme that corresponds to the Danish state pension or Labour Market Supplementary Pension (ATP), etc. This means pension schemes providing social security in old age.

The double taxation agreements signed by Denmark state whether you must pay tax in Denmark or in the country making the pension payment.

Personal pension schemes include occupational pension schemes or personal pension schemes with an insurance company, pension fund or bank.

In this case, taxation depends on several factors, including whether the pension contribution was tax deductible as part of the salary. Generally, you pay tax in Denmark, but there are a number of exceptions stated in the double taxation agreements signed by Denmark.

Danish double taxation agreements and international agreements (our legal guide - only available in Danish)

Public pensions are contributions to pension schemes related to employment in civil service or similar. Most often, such a pension payments are taxed in the country from which the income comes, yet there are exceptions. 

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