Researcher tax scheme in Denmark/Special tax scheme for highly paid employees

Who is eligible?

You can use the scheme if you have not been a 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 any 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 period.

Requirements for participation

To qualify, you must either:

1. Take up an approved researcher position, or
2. 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 been accrued. Some benefits (such as a company car and section 53 A pensions) count toward this threshold, while others (such as free housing and all other pension schemes) do not. If your income is close to the threshold, carefully review your total 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 result in loss of eligibility for at least 10 years.
• Moving to Denmark before starting your qualifying job can jeopardise your eligibility if you become a 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 up to 7 years.
• No deductions are allowed, but the low tax rate is typically very attractive compared with combined rates of up to 57% and from 2026 up to 62%.

Caution

The Danish Tax Authority closely monitors compliance. Even minor issues—such as a one-day pause violation, early relocation, or slightly insufficient salary—can result in denial of the scheme, as the rules are interpreted restrictively.

Next steps

Given the scheme’s advantages and strict oversight, we recommend carefully confirming eligibility and, if necessary, seeking binding confirmation from the Danish Tax Authority, especially if your situation is close to the eligibility thresholds.

Contact us for advice on the Researcher Tax Scheme and how it maybenefit you.