23rd March 2018
In the latest of our country guides, we take a closer look at contracting in Denmark. As a high ranking location in the global World Happiness Index and listed as the place with the best work-life balance worldwide in the OECD Better Life report, there’s certainly a lot to love about the country.
But what are the opportunities for contractors?
A growing economy driven by energy
When it comes to green energy, Denmark is certainly setting an example. In fact, earlier this year the country set a world record for sustainable energy usage with a staggering 43.4% of its energy coming from wind turbines in 2017. The government looks set to expand on this success with targets put in place to soon have half of the country’s supplies generated from green sources. It’s perhaps safe to say, then, that specialists in sustainable energy should certainly be keeping an eye on Denmark for opportunities.
The country has also reported impressive growth recently. Having ended 2017 with a higher than predicted GDP increase, the latest data indicates that Denmark is now entering an ‘economic boom’. However, reports suggest that a lack of resources could negatively impact this trend. According to the Danish Chamber of Commerce, a dearth of talent is leading to Denmark growing at a slower rate than other European locations. In order to address this, Prime Minister Lars Lokke Rasmussen has stressed that he wants to “continue to hold Denmark open for foreign talent”.
Contracting in Denmark: The legal bit
Clearly opportunities in the country are rife, however, employment and tax regulations are complex. When making a move to this destination for work, you will need to notify local municipalities within five days of securing a fixed address. You will also need to register for your Civil Personal Registration (CPR) number. This is used by public authorities as a form of ID, however in order to obtain a residence-based CPR you will need to:
- Prove that your stay in the country will last longer than three months
- Have a fixed address
- Demonstrate that you are legally entitled to stay in the country.
It’s also important to be aware that tax in the country can be high. At the moment highly-skilled expat workers are able to apply for an Expatriate Tax Scheme (ETS) which enables them to pay a flat rate income tax of 32.84% as an alternative to the Danish Progressive Income Tax of 55%. As it currently stands, the ETS is available for seven years, but in order to qualify you will need to have a minimum monthly salary of €8,775.
Remaining compliant in Denmark can be tricky, but don’t let that put you off accepting an opportunity there. Why not let the experts handle your legislative concerns instead? Speak to our team today: