Contracting in Denmark
Are you planning to be contracting in Denmark? These pages will give you an overview about Denmark as a country, what’s required of you to be contracting in Denmark, how to apply for Visa and Work Permit if necessary, the percentage of the Danish Income Tax and how the Danish Social Security works. In addition, for more practical information, download our guide Start Contracting in Denmark or our International Contracting Guide.
How to start contracting in Denmark?
Requirements to work in Denmark
Citizens from the Nordic countries, the European Union (EU) European Economic Area (EEA) and Switzerland are free to reside and work in Denmark. If you wish to reside in Denmark for more than three months, you must apply for a registration certificate at the International Citizen Service or the Regional State Administration (Statsforvaltningen).
Read more about Work Requirements in Denmark.
Danish Visa and Work Permit
You need a visa for the purpose of a short stay (less than 3 months in any 180-day period in the Schengen region.) in Denmark and other Schengen countries. However, employment is not permitted during the stay covered by the visa. Non EU/EEA to whom does not apply the basic visa requirements can stay, but not work, in the Schengen region up to 3 months.
Read more about Danish Visa.
Danish Income Tax
With regard to Income tax and direct tax itself, they include taxes deducting by employer from salary.
Read more about Danish Income Tax.
Danish Social Security
Denmark has a very extensive social security system, covering following: health insurance, sickness benefits, maternity and paternity leave, pensions, industrial injury insurance and family benefits. In fact, income taxes generally mainly financed the system itself. On the other hand, unemployment insurance is separate from the tax-funded social system, though. Furthermore, participation by employees in a Danish unemployment fund is on a voluntary basis.
Read more about Danish Social Security.
Denmark, official Kingdom of Denmark, the most southerly of the Nordic countries. It consists of a large number of islands skirted by lovely beaches. The smallest of the Scandinavian countries, Denmark occupies the Jutland peninsula, a lowland area. The country also consists of several islands in the Baltic Sea; the two largest are Sjælland, the site of Copenhagen, and Fyn. Denmark is located north of Germany, west of Sweden and south of Norway and east of Great Britain. Denmark is the smallest of the five nations in the Nordic Region, with a total land mass approximately the same size as Finnmark County in Norway.
On the other hand, Denmark has plenty of good arable land and makes the most of this natural resource. The land area of Denmark is about 43095 square kilometres. Furthermore, with around 5.6 million inhabitants, Denmark is the most densely populated country in the Region. Therefore, approx. 1.2 million people live in and around the capital city, Copenhagen.
Denmark is a constitutional monarchy. Queen Margrethe II has no real political power, and the parliament, Folketinget, is the country’s highest authority. In addition, Denmark is a member of the EU, but has retained the crown as its currency. The country is also a member of NATO, WTO (World Trade Organisation), OEC (Organisation for Economic Development) and many others. Oil and other forms of energy, the medical industry, agricultural produce, manufacturing (mostly Chemicals and chemical products, Machinery and Equipment, food and beverages), shipping and IT services are the most important sources of revenue in Denmark.