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Umziehen nach Dänemark: Your tax guide for a smooth start

A move to Denmark is a big step. To focus entirely on your new life, it's important to understand the tax aspects. Learn more about our relocation and tax services here. We are happy to assist you with any questions regarding your move.

Minutes

umziehen-nach-chicago-suburbs

umziehen-nach-chicago-suburbs

20 Dec 2024

10

Minutes

Federico De Ponte

Expert for Moving Assistance at GoMovin

A move to Denmark is a big step. To focus entirely on your new life, it's important to understand the tax aspects. Learn more about our relocation and tax services here. We are happy to assist you with any questions regarding your move.

The topic short and concise

A move to Denmark is a big step. To focus entirely on your new life, it's important to understand the tax aspects. Learn more about our relocation and tax services here. We are happy to assist you with any questions regarding your move.

A move to Denmark is a big step. To focus entirely on your new life, it's important to understand the tax aspects. Learn more about our relocation and tax services here. We are happy to assist you with any questions regarding your move.

A move to Denmark is a big step. To focus entirely on your new life, it's important to understand the tax aspects. Learn more about our relocation and tax services here. We are happy to assist you with any questions regarding your move.

Planning a move to Denmark? Avoid costly mistakes! This article explains the key tax aspects, from registration to vehicle tax.

Tax Liability in Denmark: Comprehensive Information for Your Move

Tax Liability in Denmark: Comprehensive Information for Your Move

A move to Denmark brings many changes, especially in the area of taxes. To ensure a smooth start, it's important to understand the basic tax aspects. As your partner for international relocation, we at GoMovin want to help you navigate this complex topic. We offer comprehensive advice and support to ensure that you complete all necessary steps correctly and on time.

Establishing residence in Denmark subjects you to unlimited tax liability. This means that your entire global income is taxable in Denmark. This includes not only your income from Danish sources but also income from abroad. Therefore, it is crucial that you familiarize yourself early on with Danish tax laws and gather all necessary information. The Danish Tax Agency (Skat.dk) provides detailed information on this.

Immediately after registering with the Folkeregisteret (civil registration office), you must contact the Skattestyrelsen to apply for a tax card (Forskudsopgørelse). Issuing this tax card requires accurate income estimates and details of potential deductions. It is advisable to seek professional assistance to avoid errors and make the most of all benefits. We at GoMovin are happy to assist you with this. Stay informed about the current regulations for Forskudsopgørelse to remain up-to-date.

Administrative Processes in Denmark: How to Manage the Initial Formalities

After your move to Denmark, some administrative procedures are essential to legalise your stay and ensure you are correctly registered for tax purposes. These steps are crucial for a smooth integration into daily life in Denmark. At GoMovin, we support you in efficiently completing these formalities and in avoiding potential pitfalls.

The first step is to register with the Folkeregisteret (residents' registration office). This registration forms the basis for all further administrative processes. Following this, you should promptly contact the Skattestyrelsen (Danish Tax Agency) to apply for your tax card. You can reach Skattestyrelsen by phone at +45 72 22 27 80. Have all relevant proof of income and information on potential deductions ready for this conversation. You can find more information on the initial steps on the Skattestyrelsen website.

For EU/EEA/Swiss citizens working in Denmark for less than 6 months, a tax identification number is required instead of a CPR number. However, the CPR number (personal identification number) is essential for long-term stays and accessing various services. Regardless of your nationality, you will need a NemKonto (bank account), mandatory for all government payments, including tax refunds. Additionally, MitID is crucial for accessing Danish online banking and government services. This digital identity allows you to complete many official processes conveniently online. GoMovin helps you understand these processes and correctly complete the necessary applications. Our planning services are designed to give you the best possible start in Denmark.

Tax Declaration in Denmark: How to Declare Your Income Correctly

The correct declaration of your income and assets is a central aspect of the tax obligations in Denmark. Mistakes or omissions can lead to significant fines. GoMovin assists you in fulfilling your tax obligations and providing all relevant information correctly.

Foreign bank accounts must be detailed in your tax return. This includes both interest earnings and account balances as of 31st December. Foreign securities must also be reported, with investments declared by 1st July of the following year to be able to claim any potential losses. For foreign pensions and life insurance, a special form (49.020) must be submitted within one year of becoming subject to tax. Please also note that rental income from foreign properties is taxable. You can either claim a fixed allowance or a calculated tax deduction. Further information on correct declarations can be found on the official website of Skattestyrelsen.

The Double Taxation Agreement (DTA) between Germany and Denmark plays an important role in avoiding double taxation. This agreement determines which country can tax which income. German state pensions are usually taxed in Germany, whereas occupational or private pensions can be taxed in Denmark. It is advisable to consult a tax advisor to optimally manage your individual situation. Our comprehensive relocation services also include advice on tax issues. Information on the DTA for retirees is particularly relevant to gain clarity on the taxation of your retirement provisions.

Special cases: Tax aspects for cross-border commuters, retirees, and the self-employed

Depending on your professional situation and status, there are specific tax aspects to consider when moving to Denmark. GoMovin provides tailored information and support to help you navigate your individual tax challenges.

Cross-border commuters must declare their income both in Germany and Denmark. It is important that the Forskudsopgørelse and Årsopgørelse are complete in order to receive commuter confirmations. Pensioners moving to Denmark should inform themselves about the taxation of their German pension. The taxation depends on the type of pension (state, occupational, private). Articles 18 and 19 of the DBA govern pensions and payments from public funds. Self-employed individuals and managing directors should carefully examine the tax implications, as taxation in Denmark may differ. Profits or losses from businesses outside Denmark must be declared in the tax return. The commuter info provides valuable information for cross-border commuters.

It is advisable, in any case, to consult with a tax advisor (Revisor) to optimally manage your individual situation and avoid potential pitfalls. We at GoMovin are happy to connect you with competent experts. Our services for emigrants in Europe are designed to make your transition as smooth as possible.

Vehicle tax in Denmark: Avoid high costs during vehicle registration

The vehicle tax and the import of vehicles are expensive topics when moving to Denmark. GoMovin provides you with key insights and helps you avoid unnecessary expenses.

The registration of a car in Denmark is associated with a high tax that can amount to up to 180% of the vehicle value. To minimise the tax burden, you should send form 21.009 and a copy of the German registration to the Danish customs and tax authorities before moving. The registration must occur within 14 days of moving. Note that older vehicles are also subject to tax, although the Danish VAT of 25% is waived if the car is over 6 months old and has driven more than 6,000 kilometres. The information on vehicle tax is crucial for your planning.

It is advisable to consider whether it is economically more sensible to sell the vehicle in Germany and purchase a new one in Denmark. At GoMovin, we support your decision-making and provide you with comprehensive information on the various options. Our customs services help you comply with import regulations accurately.

Deadlines and Forms: How to Keep Track of Your Tax Obligations

Meeting deadlines and correctly filling out forms are crucial to fulfilling your tax obligations in Denmark. GoMovin provides you with an overview of the key forms and deadlines.

The Forskudsopgørelse (tax card) must be updated annually to accurately reflect your anticipated income. The Årsopgørelse (tax return) typically needs to be submitted by March of the following year, usually done digitally. Upon termination of employment, Form 04.069 must be completed and sent to the Skattestyrelsen. It's important to adhere to all deadlines and complete the forms carefully to avoid penalties. The official Skattestyrelsen website offers detailed information on the forms and deadlines.

At GoMovin, we assist you in organising your documents and remind you of important deadlines. Our planning services help you stay on track and meet your tax obligations on time.

Smooth Transition: Tips for a Successful Start in Denmark

A successful start in Denmark requires careful planning and preparation, particularly regarding tax aspects. GoMovin provides you with valuable tips and recommendations for a smooth transition.

It is advisable to seek advice from a tax advisor (Revisor) in Germany and Denmark. A Danish Revisor can assist you with tax optimisation. Make sure to provide accurate information in your tax returns, as incomplete or incorrect details can lead to penalties. Use the information from Pendlerinfo.org and the Regionskontor to fully inform yourself. The information for newcomers in Sonderborg also offers valuable insights.

At GoMovin, we support you with every step of your move and are ready to assist you with advice and action. Our comprehensive moving assistance services are designed to make your transition as easy as possible.

Tax Advantages in Denmark: Take Advantage of the Opportunities

Denmark offers various tax advantages that you, as a new resident, can take advantage of. It is important to be informed about these opportunities and make the most of them. GoMovin supports you in understanding and utilizing the tax benefits in Denmark.

An important aspect is the Double Taxation Agreement (DTA) between Germany and Denmark. This agreement prevents you from paying taxes on the same income in both countries. Familiarize yourself with the specific provisions of the DTA to minimize your tax burden. Furthermore, there are various deductions you can claim, such as expenses for commuting or childcare. The Skattestyrelsen website provides detailed information on the various deductions available.

At GoMovin, we help you identify the tax benefits in Denmark and claim them in your tax return. Our services for expatriates are designed to give you the best possible start in Denmark. Take advantage of these opportunities to reduce your tax burden and optimize your financial situation.

Checklist for Your Move: Don't Forget the Tax Aspects

To ensure you don't overlook any important tax aspects when moving to Denmark, GoMovin has compiled a handy checklist for you:

Key Benefits of Umzug nach Dänemark

Here are some of the key benefits you'll gain:

  • Benefit 1: Registration with the Folkeregisteret (residents' registration office).

  • Benefit 2: Application for the tax card (Forskudsopgørelse) at the Skattestyrelsen.

  • Benefit 3: Setting up a NemKonto (bank account) for government payments.

1. Before the move:

  • Inform yourself about Danish tax laws and the double taxation agreement (DTA).

  • Gather all relevant documents (proof of income, bank statements, insurance documents).

  • Send form 21.009 and a copy of the German registration to the Danish customs and tax authorities if you wish to bring a car.

2. After the move:

  • Register at the Folkeregisteret (residents' registration office).

  • Apply for a tax card (Forskudsopgørelse) at the Skattestyrelsen.

  • Open a NemKonto (bank account) for government payments.

  • Apply for MitID for access to Danish online banking and government services.

  • Declare your foreign income and assets in your tax return.

  • Seek advice from a tax advisor (Revisor) to optimise your individual situation.

3. Ongoing obligations:

  • Update your Forskudsopgørelse annually.

  • Submit your Årsopgørelse (tax return) on time.

  • Observe deadlines for reporting foreign securities and pensions.

With this checklist, you are well-prepared and can approach your move to Denmark with ease. GoMovin is always ready to assist you with advice and support.

The state grants and tax benefits in Denmark offer you a great opportunity to invest in your future. Whether it's a new build or the renovation of a home, the available funding programmes and tax advantages make moving to Denmark attractive and financially viable.

With a variety of funding programs and tax incentives, there are numerous ways to reduce the cost of moving to Denmark. At GoMovin, we offer you comprehensive advice and support in selecting the right strategy, meeting technical requirements, navigating the application process, and avoiding potential problems.

By choosing to move to Denmark, you are investing in the future of your life. You not only reduce your living expenses and secure a high quality of life but also make an important contribution to environmental protection.

Now is the perfect time to explore the funding opportunities for your project. Contact us today to start your personalized consultation and make your funding application quickly and easily. Register for free and receive an initial estimate for your move immediately.

FAQ

What tax obligations do I have if I move to Denmark?

Upon taking up residence in Denmark, you are subject to unlimited tax liability. This means that your entire worldwide income is taxable in Denmark. You must register with the Folkeregisteret and apply for a tax card (Forskudsopgørelse) with the Skattestyrelsen.

How do I avoid double taxation when moving to Denmark?

The Double Taxation Agreement (DTA) between Germany and Denmark regulates which country is allowed to tax which income. Make sure to understand the specific regulations of the DTA, especially regarding pensions, salaries, and capital gains.

What is a Forskudsopgørelse and why is it important?

The Forskudsopgørelse is a preliminary tax statement where you declare your expected income and deductions. It is important so that the Skattestyrelsen can calculate your taxes correctly and you don't face unexpected additional payments. It must be updated annually.

How do I report foreign accounts and securities in Denmark?

You must declare your foreign bank accounts with interest income and balances as of December 31 in your tax return. Foreign securities must also be reported to claim potential losses. The deadline for this is 1 July of the following year.

What should I consider when importing my car to Denmark?

The registration of a car in Denmark is subject to a high tax, which can be up to 180% of the vehicle's value. Check the exact regulations in advance and consider whether it might be more economical to sell the vehicle in Germany and purchase a new one in Denmark.

What role does a Revisor (tax consultant) play in moving to Denmark?

A Revisor (tax consultant) can help you optimise your individual tax situation, apply the Double Taxation Agreement correctly, and avoid possible pitfalls. They can also assist you in preparing the Forskudsopgørelse and Årsopgørelse.

What is a NemKonto and why do I need one?

A NemKonto is a bank account that is mandatory for all government payments, including tax refunds. You need a NemKonto to receive payments from the Skattestyrelsen.

What deadlines do I need to be aware of for tax returns in Denmark?

The Årsopgørelse (tax return) usually needs to be submitted by March of the following year. Submission is generally done digitally. Ensure you meet all deadlines to avoid penalties.

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Elenra – Hochwertige Angebote und Durchführung in den Bereichen Gartenbau, Landschaftsgärtnerei, Landschaftsarchitektur, Baugewerbe und Handwerk. Mit maßgeschneiderter Beratung und individueller Planung realisieren wir Ihre Projekte professionell.

Elenra – Hochwertige Angebote und Durchführung in den Bereichen Gartenbau, Landschaftsgärtnerei, Landschaftsarchitektur, Baugewerbe und Handwerk. Mit maßgeschneiderter Beratung und individueller Planung realisieren wir Ihre Projekte professionell.