The leaflet Tax in Denmark – An introduction for new citizens, is a guide for newcomers to Denmark who want to learn more about the tax system in this country. Please note, that the booklet was published in 2005, and it does not include the tax changes adopted in the connection of the Tax Reform Act 2009. You can read about the change here.
You can also find information about tax and the rules that apply to people who have just moved to Denmark in the guide Taxation – when moving to Denmark.
Multimedia tax
This tax was introduced on 1 January 2010 and is applied when your employer provides you with multimedia devices that can be used for private purposes at home. Such devices include a mobile phone, a computer and free access to the internet. The existing tax is 3.000 kr. per year, regardless of whether you use one or more multimedia devices. Multimedia tax is not one of the new taxes, but a fixed added value to the bonuses offered by your employer in form of payment for a computer, a mobile phone or an internet connection that you also can use at home.
Please do not mix this with media license / DR license, which has to be paid for the right to watch DR produced channels.
At the moment the new government is reconsidering the multimedia tax, which might mean that a free telephone will be taxed with 2.500 kr., with a discount given to a spouse. The government is also considering an altogether abolishment of the multimedia tax already in 2012. International Community will update the information as soon as the government makes a new finance law. Until then you are advised to contact SKAT at: +45 7222 1818.
Stating your deductibles and allowances
Some of the tax deductions and allowances to which you are entitled will automatically be included on your income assessment. However, you must report certain deductions and allowances yourself on your preliminary income assessment and income tax return. Note that even though some deductibles are included on your income assessment, you are still required to check that the information listed is correct and report any discrepancies to SKAT. You can see where on your income assessment your deductibles are listed on SKAT’s example of a preliminary income assessment of 2009.
Driving licenses from non-EU/EEA or non-Nordic countries
If you hold a driving license from a non-EU/EEA or non-Nordic country, you are required to exchange your license for a Danish equivalent. You must do so within 14 days of being issued a Danish CPR number. Read more about the rules and how to exchange your license under Driving Licenses.
EU/EEA and Nordic driving licences
If your driving licence was issued by a Nordic or EU/EEA country, you are not required to exchange your driving licence with a Danish equivalent. However, you should be aware of the fact that if you lose your original driving licence, it may be difficult to obtain documentary proof required to apply for a new driving licence from the country that issued your licence.
If you present Citizens’ Services with a health certificate issued by your Danish doctor, your Danish driving licence can be made valid until age 70. If you do not present a health certificate, the expiry date on your foreign driving licence will be transferred to your Danish driving licence.
Examples of allowances and deductions
The general idea behind some of the allowances and deductions are that people should only pay tax on disposable income. You are, for example, entitled to deduct expenses if you:
Travel more than 12 kilometres in each direction between your home and work.
Pay a membership fee to a trade union and/or an unemployment insurance fund.
Driving licenses from EU/EEA countries and Nordic countries
If you hold a driving license from a Nordic or an EU/EEA country you are allowed to drive in Denmark using your foreign licence. However, note that if you lose your driving licence you may have difficulty obtaining the necessary documentary proof from the authorities in the country that issued your driving licence. It is therefore a good idea to obtain a Danish driving licence. Read about the rules and how to obtain a Danish license under Driving licences.
Pension plans
You are entitled to tax allowances and relief on the contributions you pay into an approved pension plan or plans. However, in order to qualify for the allowances on, and deductions from, payments toward a pension plan, the plan must be approved by SKAT Read more about how to get your pension plan approved on SKAT’s website.
Foreign-registered motor vehicles brought into Denmark must be register no later than 14 days after the owner has been issued with a CPR number. You can read more about importing a foreign-registered vehicle under Importing a foreign-registered vehicle.
Non-EU/EEA driving licences
Everyone who relocates to Denmark with a non-EU/EEA driving licence is required to exchange their licence for a Danish equivalent to drive in Denmark.
Drivers with non-EU/EEA driving licences are required to apply to have their driving licence exchanged no later than 14 days after they are issued with a Danish CPR number. You are only allowed to drive with a non-EU/EEA driving licence for 14 days after being issued a CPR number. Driving in Denmark after 14 days have elapsed without a Danish driving licence is illegal and the penalty for doing so is DKK 5,000.
Contacts and further information
A wide range of information is available on SKAT’s website: www.skat.dk.
More information on allowances and deductions is to be found in SKAT’s leaflet Tax in Denmark, An introduction – for new citizens.You will also find some information regarding allowances and deductions in SKAT’s guide ”About tax – for people resident abroad and working in Denmark”. The guide is intended for individuals from other countries coming to Denmark to work for a limited period of time. The guide explains how to obtain a tax card, how tax is deducted from your income and which allowances and deductions you are entitled to.
Drivers with non-EU/EEA driving licences are required to apply to have their driving licence exchanged no later than 14 days after they are issued with a Danish CPR number.
Traffic rules and regulations
Before driving in Denmark you should acquaint yourself with the rules and regulations that apply here. Many of the rules and regulations may be the same as in the country you come from, and others will be different. For instance, in Denmark the use of headlights is obligatory 24 hours a day. You are also required to carry a warning triangle in your car and to wear a seatbelt at all times when the vehicle is in motion.
Be aware when paying for your parking space with your Dankort in Aarhus. Several of the city’s designated parking bays can now be paid for with your Dankort, which is a relief for people like me that rarely carry coins. The procedure is relatively simple, you slide your Dankort through the payment metre when you arrive and again when you leave. The amount for the exact time is then automatically deducted from your bank account. However, you must ensure that you use the same machine when leaving otherwise you end up registering a second time and will end up with two parking bills for 24 hours each.
Where to get a Danish driving licence
An application to exchange your driving licence for a Danish equivalent is made to Citizens’ Services. Citizens’ Services are responsible for issuing driving licences, and collecting payment.
The certificate of health issued by your general practitioner together with a passport photo.
Your passport and your work and residence permit - or a certified copy of the relevant pages.
Proof of your Danish CPR number - e.g. your health insurance card.
Your current driving licence. Note: If the text of your current driving is not in the Latin alphabet, you must present a certified translation of the licence. If you have any questions, or need to find a certified translator, contact Citizens’ Services for help.
At Citizens’ Services you will be asked to complete a form, which you must hand in along with the above mentioned documentation. Please note that Citizens’ Services charge DKK 260 for processing your application.
If your driving licence was issued in Brazil, Ukraine, Australian Capital Territory, Japan, Russia, Taipei (Taiwan), South Korea or Switzerland you need to take no further action. When your original licence has been verified by the police you will receive a temporary licence and your new Danish driving licence will be sent to your home address within one month.
If your driving licence was issued by any other non-EU country you will have to pass a theory and driving test before you can be issued with a Danish licence. Citizens’ Services will send your driving licence to the police for them to check its authenticity, and in the mean time you will be given a one month temporary licence. When the police have verified the authenticity of your licence Citizens’ Services will issue another temporary driving licence valid for up to three months. You must pass the theory and driving test before the end of this period.
Insurance
Owners of vehicles in Denmark are required by law to take out motor vehicle liability insurance. This liability insurance covers damage you might inflict on other people or their property. For more information and prices, contact an insurance company. Note that the price may vary from one insurance company to another. It can be good idea to get offers from different insurance companies.
Contacts and further information
For information about SKAT and taxes in Denmark, see the SKAT website: www.skat.dk
Information about tax in Denmark is also available in SKAT’s guide”About tax – for people resident abroad and working in Denmark”. The guide is intended for individuals from other countries coming to work in Denmark for a limited period of time. The guide explains how you obtain a tax card, how tax is deducted from your income and which allowances and deductions you are entitled to.
On the SKAT website you will find a guide about the preliminary income assessment for 2009. The guide contains the most common tax rules applicable to salaried staff/wage-earners and pensioners and indicates when and how you should change your preliminary income assessment and shows examples of tax calculations.
Tick the box in front of the word “Skattecentre”, which is listed in the column on the left hand side.
Enter “the post code of your town” (4 digits only) in the search field “Postnr. eller by:”.
Click on the “søg” button.
The location of SKAT’s service centers in your area will then be marked of as small buildings on the map. Place your cursor over the building, and the address of the service office will be displayed. “Skattecentre” means tax service offices, “Postnr. eller by” means post code or town/city, “Søg” means search.
Theory and driving test
After your foreign driving licence has been verified by the police and you have received your new temporary driving licence in the mail, you must take the theory and driving test within three months.
The theory and driving tests are in Danish, but as a foreigner you are allowed to bring along an interpreter. Please note that the interpreter must be certified and approved by the police and that you must pay for the interpreter yourself.
If you do not require an interpreter for your theory test, nor wish to take a few theory classes before you take the test, you can order the theory test at Citizen’s Services. If you do need an interpreter and/or wish to take a few lessons before taking the theory test, contact a local driving school and ask them to help you.
Having passed the theory test, you must then take a driving test. You must sign up to take the driving test via a driving school.
If there is a waiting list for taking the driving test, the validity of your temporary driving licence can be extended by Citizens’ Services. However, Citizens’ Services will require proof of the fact that you have booked time for the test and that you are following the normal process.
Accidents and emergencies
In the event of accident of emergency, dial 112 for the police, ambulance, or fire services. Emergency telephones are located along motorways at two kilometre intervals. On the Danish Road Directorate’s website you can read more about emergency telephones. When you call the emergency services, remember to say who and where you are, what has happened, how many people and/or vehicles are involved and where you are calling from.
Tip from International Community
It may be a good idea to take a few driving and theory classes before you take the tests. This will cost extra, however, if you fail the tests, you will have to pay to redo the tests. The first theory and driving tests are free, but if you fail you will have to pay approximately DKK 870 to retake the test. Some driving schools offer online teaching programmes which can help you pass the tests.
What is the time frame for getting a Danish driving licence?
The time frame for getting a Danish driving licence varies. The process takes longer if you have to take a theory and driving test.
If you are required to pass the theory and driving test before you can get the driving licence, you will be issued with another temporary driving licence as soon as you have passed the tests. Your new Danish driving licence will then be sent to your address within one month.
The internet journey planer, rejseplanen.dk, has a service which allows you to compare a car journey with a journey by bus and/or train. Access the service at www.rejseplanen.dk and click on “CarJourneyplanner” in the menu on the left hand side. Click on the UK flag at the bottom of the page for the English version.
How much does it cost?
The cost of obtaining a Danish driving licence varies. It will cost more if you are required to take a theory and driving tests. The cost will also increase if you have to re-take the theory and/or the driving test. Note some driving schools require you to have at least one or two driving lessons before they will let you take the driving test.
Below you can find an approximation of some of the prices linked to acquiring a Danish driving licence. Please note that this is only circa prices and that there may be elements that are not listed here. For exact prices, contact a driving school.
Doctor’s fee for your health certificate: DKK 400
Passport Photo: DKK 100
Citizens’ Service (include the 1st theory and driving test fee): DKK 260
Renting a car for one hour for the driving test: DKK 500
Certified interpreter (if you do not speak Danish): DKK 600
Theory book in English (Optional): DKK 500
Online theory teaching programme and practice test: DKK 400
One practical driving lesson (Optional):DKK 500
Fee for retaking the theory or driving test: DKK 900
SKAT’s website www.skat.dk provides information about SKAT and the tax rules and regulations that apply in Denmark.
Returning to your home country
Drivers from non-EU/EEA countries returning to their home country, temporarily or permanently, and need their original driving licence, can exchange their Danish driving licence for their original licence. To do so, contact Citizens’ Services.
In the window that opens you will see that Borgerservice (Citizens’ Services) has already been entered in the Hvad (What) search box near the top of the screen. You then:
Enter “The name of the Municipality you live in” in the Hvor (Where) search box
Then click on Søg (Search)
You will then see a list of the address and the phone number of the Citizens’ Services office(s) in your Municipality.
