Welcome to Denmark! As a foreign individual looking to establish your tax residency here, you'll find Denmark to be a welcoming and efficient place to live and work. This guide will take you through the necessary steps to obtain tax residency in Denmark, ensuring you comply with all legal requirements.
Step 1: Determine Your Residency Status
To become a tax resident in Denmark, you need to either stay in Denmark for at least 6 consecutive months, including short stays abroad for holidays or the like, or establish a permanent home in Denmark. Your residency status will determine your tax obligations.
Step 2: Obtain a CPR Number
The CPR number is your personal identification number in Denmark. You must register with the Civil Registration System (CPR) at the local Citizen Service Centre (Borgerservice) within 5 days of arriving in Denmark if you plan to stay for more than 3 months. You will need to provide your passport, proof of address, and a completed registration form.
Step 3: Register Your Address
Once you have a CPR number, you must register your address with the local municipality. This is crucial as your address registration is linked to your tax records and other public services.
Step 4: Open a Danish Bank Account
Having a Danish bank account is essential for managing your finances while living in Denmark. Most banks will require your CPR number, proof of address, and passport to open an account. Ensure you keep records of all your financial transactions as these may be required for tax purposes.
Step 5: Inform the Danish Tax Agency (SKAT)
You need to inform the Danish Tax Agency (SKAT) about your residency status. This can be done online through the SKAT website or by visiting a local SKAT office. You will need to fill out a form and provide your CPR number, address, and other relevant information.
Step 6: File Your Taxes Annually
As a tax resident of Denmark, you are required to file an annual tax return. The Danish tax year runs from January 1st to December 31st. You will receive a preliminary income assessment (forskudsopgørelse) at the beginning of the tax year, which you must review and correct if necessary. At the end of the tax year, you will receive an annual tax statement (årsopgørelse) which summarizes your income and taxes paid.
Legal References
- Danish Tax at Source Act (Kildeskatteloven)
- Danish Civil Registration System Act (CPR-loven)
- Danish Tax Administration Act (Skatteforvaltningsloven)
Useful Links
