Whether you’re new to Denmark or have been living here for a while, navigating the local tax system and managing your finances can be overwhelming, especially if Danish isn’t your first language. From understanding how much tax you owe to knowing which deductions you’re eligible for, even small oversights can cost you money or lead to complications with the Danish tax authority (Skattestyrelsen). This is where tax & financial advisors in Denmark come in.
For many foreigners, getting professional help with taxes and financial planning in Denmark is a necessity. A qualified financial advisor in Denmark can help you comply with local regulations, optimise your finances, and avoid costly mistakes. Thus, in this guide, I’ll walk you through how the Danish tax system works, who should consider getting advice, and how to find the right tax & financial advisors in Denmark who meet your needs.
Here are the key points in this article:
- Understanding the Danish Tax System: Denmark’s comprehensive welfare system is funded through high income taxes, and understanding key features like CPR numbers, tax cards, and deductions is essential for compliance and optimization.
- Who Needs a Tax or Financial Advisor in Denmark: Foreigners with complex financial situations, such as foreign income, self-employment, or international assets, can significantly benefit from professional tax and financial advice to avoid errors and optimize finances.
- How to Find the Right Advisors: When choosing a tax or financial advisor in Denmark, consider their language skills, experience with foreigners, fee structures, specialization, and qualifications to ensure they meet your specific needs.
- Availability and Cost of Advisor Services: Advisor options range from online platforms with flat fees to large firms with higher rates, and many advisors speak English, making professional help accessible for various budget levels.
- FAQs about Tax & Financial Advisors in Denmark: While not mandatory for simple cases, using a tax advisor is recommended for complex finances; many advisors speak English, help with pensions, and are regulated by Danish authorities for financial services.
If you are looking for more detailed guides on issues related to tax & finances in Denmark, you may want to check out the other guides we have on The Danish Dream, where we cover these topics in detail:
- Best Lawyer in Denmark for Foreigners
- Best Accountant in Denmark for Foreigners
- Best Tax Advisors in Denmark for Foreigners
First Things First: Understand the Danish Tax System
Denmark is known for its comprehensive welfare system, which is largely funded through income taxes. That means taxes are high, but if you understand how the system works, there are ways to optimise your financial situation and avoid paying more than you have to.
Here are a few key features of the Danish tax system that are important for foreigners:
- CPR Number & Tax Card: To work or live in Denmark, you need a CPR number (civil registration number). Once registered, you must apply for a skattekort (tax card), which determines how your income is taxed.
- Withholding Tax: Your employer typically deducts income tax directly from your salary. However, you’re still responsible for reviewing and adjusting your preliminary income assessment (forskudsopgørelse) each year.
- Annual Tax Assessment: Every spring, you’ll receive your årsopgørelse (final tax statement) from skat.dk. It’s your responsibility to review and correct it, especially if you have multiple sources of income or deductions.
- Common Deductions: These may include commuting costs, union fees, pension contributions, and interest on loans.
- Top Tax (Topskat): If you earn above a certain threshold, you’ll pay an additional topskat of 15% on top of regular income tax.
- Labour Market Contribution (AM-bidrag): 8% is automatically deducted from your gross income before calculating income tax.
While many Danes manage this independently, the system can be particularly complex if you have foreign income, own property outside Denmark, are self-employed, or if you’re married to a non-resident. In these cases, expert guidance can save time and potentially a significant amount of money.
Who Needs Tax or Financial Advisors in Denmark?
We wouldn’t say that everyone in Denmark needs to work with a tax or financial advisor per se, but for many foreigners, it can really make a big difference. The Danish tax system is built on trust and self-reporting, which can be intimidating if you’re unfamiliar with the rules or struggle with the language. If any of the following apply to you, we would generally recommend you consider working with tax & financial advisors in Denmark:
You’ve just moved to Denmark
Understanding the basics, like registering for a tax card or knowing what you’re allowed to deduct, can be confusing when everything is in Danish. Tax & financial advisors in Denmark can ensure you’re set up correctly from the start.
You have income from abroad
Foreign income (such as rental income, dividends, or freelance work) must often be declared in Denmark. Double taxation agreements may reduce your tax liability, but the rules are complex and vary by country.
You’re self-employed or own a business
Freelancers, consultants, and small business owners have more complex tax obligations, such as VAT (moms), quarterly tax payments, and business deductions. Mistakes here can lead to penalties or overpayments.
You’re married to someone abroad or file jointly
Taxation in Denmark considers your household situation. If your spouse isn’t a Danish resident or doesn’t have a CPR number, your taxes could be affected. Tax & financial advisors in Denmark can help you avoid incorrect assessments.
You want to optimise your finances
Tax & financial advisors in Denmark can assist with everything from pension contributions and investment planning to mortgage strategies and long-term savings, helping you make the most of Denmark’s high-tax, high-benefit system.
You’ve received letters from Skattestyrelsen
If you’re unsure what they mean or how to respond, an advisor can translate and guide you through the right course of action, helping you avoid misunderstandings or legal issues.
In short, if you have anything more complicated than a standard salary and Danish bank account, getting professional advice can provide peace of mind, and in many cases, save you money.
How to Find the Right Tax & Financial Advisors in Denmark
Finding the right tax or financial advisor can feel overwhelming, especially if you’re new to Denmark and unsure what to look for. While we are sure there are many advisors out there, not all are familiar with the needs of international clients. Thus, are a few things we would recommend you to consider:
- Language Skills: Many advisors in Denmark work primarily in Danish. Look for someone who offers services in English and understands cross-border financial issues.
- Experience with Foreigners: Advisors who work regularly with foreigners are more likely to be familiar with tax treaties, residency rules, and income sources outside of Denmark.
- Fee Structure: Some advisors charge hourly rates, while others offer fixed packages. Make sure you’re clear on the pricing before committing.
- Specialisations: Depending on your situation, you may need an advisor who specialises in self-employment, international taxation, or investment planning.
- Accreditations: Look for certified tax advisors or financial planners with recognised qualifications and a track record of client satisfaction.
Below is a simplified comparison of typical options available in Denmark:
| Advisor Type | Best For | Languages | Typical Pricing | Pros | Cons |
|---|---|---|---|---|---|
| Large Tax Advisory Firms | Complex international tax issues | English, Danish | Hourly or fixed packages | Reliable, experienced, well-staffed | Higher prices, less personal contact |
| Independent Accountants | Personal tax returns, small business owners | Often bilingual | Hourly (DKK 600–1,200) | Flexible, personalised service | Quality varies; research needed |
| Online Platforms | Filing support, simple tax questions | English/Danish | DKK 200–800 per task | Easy booking, fast help | Not ideal for complex needs |
| Financial Planners | Long-term savings and investment guidance | English, Danish | Fee-based or % of assets | Strategic advice, holistic approach | Not all are licensed tax experts |
FAQ About Tax & Financial Advisors in Denmark for Foreigners
Do I need a tax advisor as a foreigner in Denmark?
Not necessarily, but it can be very helpful. If you have a simple income with no foreign earnings or assets, you may be fine using the Danish Tax Agency’s (Skattestyrelsen) online system. But if your finances are more complex, e.g., freelance income, foreign investments, or family abroad—an advisor can help you avoid costly mistakes and maximise your deductions.
Can I file my Danish taxes myself?
Yes. The tax return is often pre-filled and can be submitted online through your personal TastSelv profile on Skattestyrelsen’s website. However, pre-filled does not always mean correct. It’s still your responsibility to review and correct any information.
Are tax advisor services in Denmark expensive?
It depends. Independent advisors may charge DKK 600–1,200 per hour, while online platforms offer quick help for a flat fee (as low as DKK 200–800). Large firms are usually more expensive but are better suited to complex international cases.
Do Danish advisors speak English?
Many do—especially in larger cities or firms that work with expats. But it’s always a good idea to check language availability before booking a consultation.
Can a financial advisor help me with pension or savings plans?
Yes. Certified financial advisors often assist with long-term planning, including pensions, investment options, insurance, and budgeting. Some also specialise in advising foreigners on how Danish financial products fit into their broader financial picture.
Is financial advice regulated in Denmark?
Yes. Advisors working with investments, insurance, or pension products must be licensed by the Danish Financial Supervisory Authority (Finanstilsynet). Make sure your advisor is properly accredited if you’re seeking regulated financial services.
What is the difference between a tax advisor and an accountant in Denmark?
There is overlap, but typically: a tax advisor focuses on tax optimisation, compliance, and complex cross-border cases, whereas an accountant may handle bookkeeping, VAT filings, business expenses, and tax returns, especially for the self-employed. Some professionals offer both services.
