Denmark Digital Nomad Visa: Exploring Your Options

Denmark, with its picturesque landscapes, efficient public services, and high quality of life, is an attractive destination for many. If you’re a digital nomad considering Denmark as your next base, it’s essential to understand the visa options and regulations that apply. While Denmark doesn’t offer a specific digital nomad visa, there are alternative pathways to explore.

Does Denmark Have a Digital Nomad Visa?

As of now, Denmark does not offer a dedicated digital nomad visa like some other European countries. This means that if you’re a non-EU citizen and wish to live in Denmark while working remotely for a foreign employer, you will need to navigate Denmark’s existing visa and work permit frameworks.

It’s crucial to understand that Danish immigration laws strictly regulate employment, even if your work is entirely online and for a company outside of Denmark. Simply entering Denmark on a Schengen Visa or a visa-free stay (for eligible nationalities) does not grant you the right to legally work while residing in the country.

For those looking to stay long-term, options such as work visas, startup visas, or residence permits based on other qualifying criteria (e.g., family reunification or studies) may be worth exploring. However, these visas typically require sponsorship from a Danish employer or proof of a qualifying business activity.

While Denmark does not currently have a specific visa pathway for remote workers, digital nomads interested in the region may want to consider nearby countries like Estonia, Portugal, or Spain, which have launched dedicated digital nomad visa programs.

Alternative Visa Options for Digital Nomads

While Denmark does not offer a specific digital nomad visa, there are a few visa options that remote workers and entrepreneurs might consider, depending on their circumstances.

1. Short-Term Schengen Visa

• Duration: Allows stays of up to 90 days within a 180-day period.
• Eligibility: Citizens of certain countries can enter Denmark visa-free for short stays. Others must apply for a Schengen Visa before traveling.
• Work Restrictions:
  • This visa does not permit employment within Denmark, even if you are working remotely for a foreign employer.
  • Engaging in any form of work without explicit authorization from the Danish Immigration Service is considered a violation of immigration laws.
  • If you plan to work while in Denmark, even online, you should consult an immigration expert to ensure compliance.
• Best for: Travelers who want to explore Denmark temporarily while working remotely on a short-term basis, provided they comply with Danish regulations.

2. Startup Denmark Visa

• Best for: Entrepreneurs looking to establish a high-potential startup that contributes to the Danish economy.
• Duration: Initially valid for up to two years, with the possibility of extension.
• Requirements:
  • Your business idea must be approved by the Danish Business Authority.
  • You must have sufficient financial resources to support yourself while launching your business.
  • You must be actively involved in running the startup.
• Important Considerations:
  • This visa is not intended for small-scale businesses, such as local retail stores, cafes, or freelance work.
  • The focus is on innovative startups with potential for international growth, particularly in tech, sustainability, or other high-impact industries.
• Best for: Entrepreneurs who want to base their startup in Denmark and meet the visa’s specific innovation and financial criteria.

Tax Considerations for Digital Nomads in Denmark

Denmark has a reputation for high taxes, but there are certain tax rules and incentives that may apply to digital nomads and remote workers, depending on their residency status and income sources.

Tax Residency in Denmark

If you stay in Denmark for more than six consecutive months, you are generally considered a tax resident, meaning you must report and pay tax on your worldwide income. However, if your stay is temporary and does not exceed this period, you may only be taxed on Danish-sourced income.

Tax Exemption on Foreign Income

Digital nomads who work for a foreign employer and do not receive income from Danish sources may qualify for tax exemptions on certain types of foreign income, including:

• Dividends from foreign investments
• Interest earnings from foreign bank accounts
• Rental income from properties outside Denmark

This means that if you are not considered a tax resident, you may not need to pay Danish income tax on earnings sourced from outside Denmark. However, tax treaties between Denmark and your home country may impact your tax obligations.

Special Tax Scheme for High Earners

Denmark offers a special tax scheme (also known as the “expat tax scheme”) for highly skilled foreign professionals. Under this scheme, eligible individuals can pay a reduced flat tax rate of 27% (plus labor market contributions, totaling 32.84%) for up to seven years instead of the standard progressive tax rates, which can exceed 50%. However, this scheme is typically available only to employees with Danish employers, so it may not be relevant for digital nomads working remotely for foreign companies.

Taxation of Self-Employment Income

If you are a self-employed digital nomad and considered a Danish tax resident, you are generally subject to Denmark’s progressive tax system, where rates can range from 38% to over 50% depending on income levels. However, there are deductions and allowances available that may reduce the overall tax burden. Some self-employed professionals may also qualify for a reduced tax rate of 26% under specific conditions.

Social Security Contributions

Even if you are not liable for Danish income tax, staying in Denmark for an extended period may require contributions to Denmark’s social security system (ATP and other labor market contributions). Whether you need to contribute depends on factors such as visa status, length of stay, and agreements between Denmark and your home country.

Double Taxation Agreements

Denmark has double taxation treaties with many countries, preventing individuals from being taxed twice on the same income. If you are a tax resident in another country, you may be able to claim tax relief or exemptions under these agreements.

Key Takeaways for Digital Nomads

• Short-term stays (under 6 months): Likely exempt from Danish taxes if income is foreign-sourced.
• Long-term stays (over 6 months): May be subject to full Danish taxation.
• Remote work for a foreign employer: Generally not taxed in Denmark unless you become a tax resident.
• Self-employment in Denmark: Subject to Danish tax laws, with some potential for deductions or reduced rates.
• Double taxation treaties: Can help reduce tax obligations depending on your home country.

Since tax laws can be complex and vary based on personal circumstances, digital nomads planning to stay in Denmark for an extended period should consult a Danish tax professional to ensure compliance and optimize their tax situation.

Eligibility Criteria:

To qualify for certain tax exemptions or reduced rates while working remotely in Denmark, digital nomads must meet specific eligibility requirements. These criteria ensure that only those who meet the necessary legal and financial conditions can benefit from Denmark’s tax incentives.

1. Employment Status

To be eligible, a digital nomad must be either:

• Self-employed, running their own business that is legally registered outside of Denmark.
• Employed by a non-Danish company, meaning the employer must be based in another country and have no formal business operations in Denmark.

This requirement is important because individuals working for a Danish company or earning Danish-sourced income are generally subject to Denmark’s standard tax regulations and social security contributions.

2. Residence Permit Requirements

• Applicants must hold a valid residence permit that allows them to stay in Denmark for at least one year.
• This means short-term visitors or individuals staying under a Schengen Visa (90-day limit) will not qualify.
• Residence permits may be granted based on family reunification, study, work, or other legal grounds, but digital nomads must ensure their permit aligns with their intended remote work activities.

3. Prior Residency Restrictions

• To prevent tax avoidance, individuals must not have been a tax resident of Denmark for more than five years before starting their remote work under this tax arrangement.
• This rule applies even if you previously lived in Denmark under a different visa category, such as for studies or employment.
• If you have lived in Denmark within the past five years, you may still be subject to full Danish taxation on worldwide income, depending on your residency status.

4. Application Process for Tax Benefits

To officially claim these tax benefits, digital nomads must submit an application to the Danish Tax Agency (SKAT), along with relevant supporting documents. The application process typically includes:

• Proof of foreign employment or self-employment (e.g., work contracts, business registration certificates).
• Proof of residency status (e.g., residence permit, lease agreement, or proof of address in Denmark).
• Tax residency certificates from their home country to confirm they are not tax residents of Denmark.
• Documentation of foreign income sources to verify that the income is not derived from Danish businesses or clients.

Important Considerations

• Denmark has strict tax laws, and failing to report income or misrepresenting employment status can lead to penalties or legal issues.
• The Danish Tax Agency reviews applications carefully, and additional documentation may be required depending on the applicant’s situation.
• If approved, digital nomads may benefit from tax exemptions on foreign-sourced income and potentially lower tax rates on self-employment income.

Key Takeaways

• Digital nomads must be either self-employed or working for a non-Danish company to qualify.
• A valid residence permit for at least one year is required.
• Individuals who have lived in Denmark for more than five years in the past may not qualify for these benefits.
• Applications must be submitted to SKAT with proper documentation to claim tax exemptions or reductions.

Final Thoughts: Navigating Denmark as a Digital Nomad

Although Denmark does not have a dedicated digital nomad visa, remote workers still have viable options to legally live and work in the country. Whether through short-term stays under the Schengen Visa, entrepreneurial opportunities via the Startup Denmark Visa, or strategic tax planning, there are ways to experience Denmark’s high quality of life while maintaining a remote career.

However, staying compliant with Danish immigration and tax laws is essential. Regulations can change, and misinterpretations could lead to visa issues, tax penalties, or legal complications. Consulting with immigration specialists and tax professionals can help ensure a smooth transition and avoid unnecessary hurdles.

With careful planning and the right visa or residence permit, digital nomads can immerse themselves in Denmark’s thriving cities, scenic landscapes, and work-friendly environment—all while continuing their remote careers seamlessly. Whether you’re drawn to Denmark for its work-life balance, social benefits, or entrepreneurial ecosystem, the country offers a unique and rewarding experience for location-independent professionals.