The Danish Special Tax Scheme lets international consultants pay just 27 % income tax + 8 % labour-market contribution for up to seven years. As a result, Denmark becomes far more attractive than countries with standard rates above 50 %. Below, you’ll see how the scheme works, who qualifies, and why teaming up with an EOR such as Northern Partners simplifies every step.
Key Benefits at a Glance
- Flat tax: 27 % income tax + 8 % AM-contribution (effective 32.84 %).
- Long-term: Benefit for 84 months (seven years).
- Simple filings: Fewer forms than the ordinary Danish regime.
- Competitive offers: Employers can provide higher net pay without raising gross cost.
Who Can Qualify?
To enter the Danish Special Tax Scheme, the professional must meet all of these criteria:
- Recruited from abroad: No Danish tax residence during the past ten years.
- Minimum salary: More than DKK 78,000 per month (2025 threshold; updated annually).
- No controlling share: The person cannot own the hiring company.
- Valid Danish contract: The employment must follow local labour law.
Tip: Skattestyrelsen adjusts the salary threshold every January, so always check the latest figure.
Why Combine the Scheme with an EOR?
Even though the tax rule is generous, compliance can still derail a project. Therefore, many firms use an Employer of Record:
- Legal employer of record: Northern Partners hires the consultant on your behalf.
- End-to-end payroll & tax: We calculate, withhold and submit every payment correctly.
- Zero Danish entity needed: You can launch in days rather than months.
- Reduced risk: We shoulder employment liability while you keep day-to-day control.
Ideal Use Cases
- Testing the Danish market without opening a subsidiary.
- Deploying remote-first teams who need local compliance.
- Offering tax-optimised packages to senior experts.
Next Steps – Talk to Northern Partners
Our specialists assess eligibility, file the Special Tax Scheme application, and run compliant payroll every month. In short, we let you focus on growth while we handle Danish red tape.
Ready to unlock Denmark’s Special Tax Scheme? Contact Northern Partners today and start hiring in Denmark within a week.
