Starting a business in
🇩🇰Denmark
Checked November 4, 2026 · How we score
Corporate tax
22%
Top income tax
52.07%
Setup from
$1,500
all-in, first year
Time to form
7 days
visit usually needed
Taxes in Denmark
| Corporate income tax | 22% Flat 22% corporate income tax. Dividends and royalties paid abroad are subject to withholding tax unless exempt under EU directives or treaties. |
|---|---|
| Personal income tax (top) | 52.07% Top marginal rate of 52.07% (including labour-market contribution), applying to income above roughly DKK 750,000 including top tax; the maximum combined rate is capped at 52.07%. |
| Tax system | Worldwide income |
| Capital gains tax | 42%Share gains and dividends are taxed at 27% up to a progression threshold (about DKK 70,000-80,000) and 42% above it for individuals. |
| Dividend withholding (non-residents) | 27% |
| VAT / GST | 25% |
| Social security | 8% labour-market contribution (AM-bidrag) on gross salary; employers pay small fixed ATP and other contributions rather than large percentage payroll taxes. |
Forming a company in Denmark
| Usual entity | ApS (private limited company) |
|---|---|
| Minimum capital | $5,900 |
| Setup cost (all-in) | $1,500–$4,500 |
| Annual running cost | $4,000–$10k |
| Time to incorporate | 7 days |
| Form remotely as a foreigner | No |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
EU/EEA citizens can register freely. Non-EU entrepreneurs can use the Start-up Denmark scheme (a points-based residence permit for innovative startups, subject to expert panel approval) or a self-employed route.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 4/5 (1 = easiest) |
Special tax regimes
Researcher and key employee scheme
Qualifying foreign hires can be taxed at a flat 27% (about 32.84% including contributions) for up to seven years instead of the standard progressive rates.
Start-up Denmark
Residence permit pathway for non-EU founders of scalable startups, assessed by an expert panel.
Shares and holding company exemption
Dividends and gains on qualifying subsidiary shares (10% holding) are exempt, making a Danish holding company tax-neutral for group profits.
Pros and cons
Why founders pick Denmark
- Highly digital, fast registry and strong rule of law
- Top-tier reputation with investors and banks
- Researcher scheme lowers tax to 27% for qualifying hires
- Low corruption and high ease of doing business
Watch out for
- Very high personal taxes and 25% VAT
- Danish address and EEA-resident manager requirements for non-EEA founders
- Opening a business bank account is slow for non-residents
- Expensive payroll and accounting
Best for: Venture-backed Nordic startups · Companies selling to the EU wanting a premium jurisdiction · Highly skilled hires using the expat tax scheme
Denmark: common questions
What is the corporate tax rate in Denmark?
The corporate income tax rate is a flat 22%. Dividends paid to individuals are taxed at 27% up to a threshold and 42% above it.
How much does it cost to start an ApS in Denmark?
The minimum share capital is DKK 40,000 (about USD 6,000), which stays in the company. Registration with the Danish Business Authority costs roughly DKK 670 online, and adding advisors and bookkeeping puts first-year costs at around USD 1,500-4,500 excluding capital.
Can a foreigner start a company in Denmark?
Yes, but founders need a Danish address and a CVR number and the managers must be resident in Denmark or the EEA unless the Business Authority grants an exemption. Non-EU owners typically need an adviser to register, and a residence permit via Start-up Denmark or similar to live there.
What are the personal income tax rates in Denmark?
Denmark taxes income progressively with a combined top marginal rate of 52.07% including the 8% labour-market contribution, applied to income above roughly DKK 750,000. Capital income and share income have separate rates.
Sources
- Danish Tax Agency (Skatteforvaltningen)
- Virk - Danish Business Authority
- PwC Worldwide Tax Summaries - Denmark
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.