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Withholding tax in Denmark 2026
Denmark withholds 27% on dividends to non-residents — dropping to 15% for portfolio investors (under 10%) from information-exchange countries — while interest flows out with no withholding at all and industrial royalties carry 22%.
Hired-out labour bears a 30% final tax, and non-resident sailors and hydrocarbon workers have their own 30% flat regimes.
At a glance
- top rate
- 30% (hired-out labour; hydrocarbon employment)
- entry band
- 0% on interest
- tax year basis
- Withheld at payment
- filing deadline
- Final for most; assessment otherwise
- residency basis
- Danish-source income of non-residents
- regime flag
- 75% rule grants resident-style deductions
Rates
Withholding on payments to non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 27% | Gross dividend | Danish dividends — 15% for sub-10% holders in information-exchange countries; treaties reduce further |
| 0% | — | Interest paid to non-resident individuals |
| 22% | Gross | Industrial royalties (patents, trademarks, know-how) — copyright royalties are untaxed |
| 30% | Gross | Employees hired out to Danish businesses — final |
| 30% | Gross | Non-resident sailors (designated operations) and hydrocarbon-sector workers of foreign employers — final, optional resident taxation |
| Payroll rates | Salary | Ordinary Danish employment — municipal flat 25% + state tiers |
Thresholds & allowances
- 75% frontier ruleResident-style deductions, credits and spouse transfers
For non-residents earning 75%+ of worldwide income from Danish employment or business
Residency
Residency trigger
Non-residents owe Danish tax on Danish-source employment, board fees, pensions, property and business income — mostly by assessment at a flat 25% municipal rate plus state taxes.
Non-resident treatment
Former residents remain taxable on consultancy fees from Danish businesses they managed or owned within the past 5 years — an anti-exodus rule worth knowing before leaving.
Notes
- The 0% on interest and copyright royalties makes Denmark administratively clean for foreign bondholders and authors.
- Dividend-refund claims (from 27% to treaty rates) run through a heavily scrutinised process since the refund-fraud scandals — documentation standards are exacting.
- An EU-wide fast-refund system for excess withholding applies from 2030; Denmark has not yet transposed it.
- Board fees from Danish companies are always Danish-taxable, with no personal credit.
FAQ
What does Denmark withhold on dividends to foreign investors?
27% at source — reduced to 15% for portfolio investors (under 10% stakes) resident in countries that exchange information with Denmark, and further by treaty.
Is Danish interest taxed for non-residents?
No — 0% withholding and no income tax on interest paid to non-resident individuals.
Figures: tax year 2026, compiled from public sources. Not tax advice.