Do you live in Denmark and work in another Nordic country for a private sector employer?
This applies to you who live in Denmark and work for a private employer in another Nordic country. This information only applies to taxation of your income from employment.
Your employer is from the country of work
You must pay tax on your salary in the country of work. There are certain exceptions; see below under “Special rules”.
Your employer is from a country other than the country of work
You must pay tax on your salary in the country of work when one of the following conditions is met:
- you stay in the country of work for more than 183 days during a twelve-month period,
- your employer has a permanent establishment in the country of work, or
- you are hired out to an enterprise in the country of work.
If none of these conditions is met, your salary will only be liable to tax in Denmark. There are certain exceptions; see below under “Special rules”.
When you pay tax and are social security in the country in which you work, the income is not taxable in Denmark. However, the income must be included in the calculation of your Danish tax in order to determine the tax rate applicable to any other Danish income.
If you are covered by social security in Denmark, the income should be declared on your Danish tax return. Denmark will avoid double taxations by giving you a credit for taxes paid in the other Nordic country. The tax credit cannot be higher than the amount of tax you would have paid if same income would have been earned in Denmark.
The Oresund Bridge
If you are living in Denmark and work with maintenance and operation of the Oresund Bridge, you are only liable to pay tax in Denmark, even if your work has taken place in Sweden.
Danish-Swedish agreement on certain tax matters
If you are living in Denmark and work mainly in Sweden, there is a tax agreement between Denmark and Sweden, which regulates certain tax matters.
Taxation in Sweden of work performed in Denmark or another country
You are only liable to pay tax in Sweden on work performed in Denmark or other countries if all of the following conditions is met:
- you spend at least half of your working time within a three-month period in Sweden, working for a Swedish employer or an employer whose permanent establishment is in Sweden, and your work in Sweden is performed at the permanent establishment.
- you work from home in Denmark, during business travel or other occasional work.
- when you work in another country, the nature of the work must be business travel or other work of occasional nature.
Other matters included in the agreement are deductions for expenses for crossing the Oresund Bridge and deductions for contributions towards pension savings.
Working on board a train running between Denmark and Sweden
If you live in Denmark and work on board a train that runs between Denmark and Sweden, you are liable to pay tax in Denmark.
If your employer is Swedish, you are also liable to pay tax in Sweden on the same income. You must always include your Swedish income in your tax return in Denmark. If you are paying tax in both countries, Denmark must grant you tax relief on the tax you have paid in Sweden.
You must pay tax in Denmark if you receive remuneration for board work from a company in another Nordic country. The income may also be taxable in the country in which the company is resident. This applies regardless of where the work is actually carried out.
If you have pay tax in both countries, Denmark will include the tax you paid in another Nordic country in the calculation of your tax. The relief may not exceed the amount you paid in Danish tax on your income.
National Insurance scheme (social security) membership
There are specific rules to determine which country´s National Insurance scheme (social security scheme) you will be a member of. Contact borger.dk or the social security authorities in the country in which you work for more information.