The Danish Tax Scheme for Foreign Researchers and Highly-Paid Employees (forskerordningen)
The Researcher Tax Scheme/Special Tax Scheme is designed to attract highly skilled professionals to Denmark and support Danish companies in recruiting top international talent.
Who is eligible?
You can use the scheme if you have not been tax resident in Denmark in the last 10 years. This rule is applied strictly and includes most types of income. Even being formally registered as a taxpayer counts, regardless of whether you earned income.
The scheme is open to:
- Individuals who have never lived in Denmark.
- Individuals who have lived abroad for at least 10 years without employment income in Denmark during that time.
Requirements for participation
To qualify, you must either:
- Take an approved researcher position, or
- Meet the criteria for being considered highly paid.
For the highly paid route, your monthly income must be at least DKK 75,100 after ATP contributions and deductions for unpaid leave if vacation has not accrued. Some benefits (like a company car and section 53 A pensions) count toward this threshold, while others (like free housing and every other pension) do not. If your income is near the threshold, carefully review your salary package.
Important rules while under the scheme
- Follow the pause rules if you leave a job and seek a new eligible position. Proper compliance allows you to spread your 7 years under the scheme over multiple periods.
- Violating the pause rules can lead to loss of eligibility for at least 10 years.
- Moving to Denmark before starting your qualifying job can jeopardize your eligibility if you become tax resident too early.
Registration and benefits
- You must meet certain formal registration requirements to participate.
- If eligible, you benefit from a flat 27% tax plus AM contribution (total 32.84%) for 7 years.
- No deductions are allowed, but the low tax rate is typically very attractive compared to combined rates of up to 57% and from 2026 up to 62%.
Caution
The Danish Tax Authority monitors compliance closely. Even small errors—like a one-day pause violation, early relocation, or slightly insufficient salary—can lead to denial of the scheme, as rules are interpreted restrictively.
Next steps
Given the scheme’s advantages and strict oversight, we recommend confirming eligibility carefully and, if necessary, seeking binding confirmation from the Danish Tax Authority, particularly if your situation is close to the eligibility limits.
Contact us for advice on the Researcher Tax Scheme and how it could benefit you.