File Your US Expat Taxes in Denmark
March 10, 2025 | Country Guides |
Expat Tax Blog. Tax Tips for US Americans abroad.
Updated March 12, 2025
All blogs are verified by Enrolled Agents and CPAs
All blogs are verified by Enrolled Agents and CPAsUpdated March 12, 2025
Consistently ranking among the world’s happiest nations, Denmark is an incredible place for expats looking for a high quality of life. If you’re an American living in this bike-friendly, design-savvy country, filing US expat taxes from Denmark is something you’ll need to navigate to stay compliant with both US and Danish tax laws. While Denmark’s progressive society and strong social benefits make it a dream destination, understanding how taxes work across borders will help you avoid surprises and make the most of your expat experience.
Read on for our breakdown of everything you need to know about filing your US expat taxes from Denmark.
Links
Who Needs to File US Expat Taxes?
Moving to Denmark? Here’s What to Expect.
Raising Your Family in Denmark
Self-Employment for US Expats in Denmark
Get Expert Help With Your Expat Taxes
Who Needs to File US Expat Taxes?
US citizens and Green Card holders are required to file US expat taxes no matter where they live, including Denmark. The US follows a citizenship-based taxation system, meaning all Americans must report their worldwide income if they exceed certain income thresholds. Even if you’re paying Danish taxes, you may still need to file a US tax return (Form 1040), and possibly additional forms like the FBAR (FinCEN 114) for foreign bank accounts or Form 8938 for foreign assets.
| Filing Status | Income Threshold |
|---|---|
| Single | $14,600 |
| Married Filing Jointly | $29,200 |
| Married Filing Separately | $5 |
| Self-Employed | $400 |
Understanding these requirements can help you avoid penalties and ensure you stay compliant with US tax laws while enjoying life in Denmark!
Moving to Denmark? Here’s What to Expect.
Life in Denmark offers a balance of comfort, efficiency, and a strong sense of community. You’ll experience a high quality of life, excellent public services, and a work-life balance that values leisure and family time. The Danish concept of hygge (coziness and well-being) is more than a trend—it’s a way of life, reflected in everything from candle-lit cafés to friendly gatherings. People tend to be reserved but become warm once you get to know them. While many speak English, learning some Danish helps you integrate and feel more at home.
5 Things to Know About Living in Denmark:
- CPR Number is Essential: You need this personal identification number for healthcare, banking, and even setting up a phone plan.
- High Taxes, but Great Services: Expect to pay high income taxes in return for free healthcare, education, and an excellent public infrastructure.
- Biking is King: Denmark is one of the most bike-friendly countries, and cycling is often the fastest way to get around.
- Housing Can Be Competitive: Finding a rental, especially in Copenhagen, takes time. Start your search early and prepare for high prices.
- Digital Life is the Norm: Denmark runs on digital systems, so you’ll handle most official processes, banking, and doctor appointments online.
Danish Visas & Taxes
As a US citizen, your visa requirements for entering Denmark depend on the purpose and duration of your stay.
Short-Term Visits (Up to 90 Days)
- You can enter Denmark visa-free for tourism or business purposes for stays up to 90 days within a 180-day period. Ensure your passport is valid for at least three months beyond your planned departure date from the Schengen Area.
Long-Term Stays (Over 90 Days)
For stays exceeding 90 days, or if you’re planning to work, study, or reside in Denmark, you’ll need the appropriate visa or residence permit. The Danish government offers various options, including:
- Work Visas for individuals with a job offer from a Danish employer.
- Student Visas for those accepted into an educational institution in Denmark.
- Family Reunification Visa if you are joining a family member who is a resident of Denmark.
- Residence and Work Permits for other specific purposes of stay.
From late 2025 onwards, US travelers will also need to obtain authorization through the European Travel Information and Authorization System (ETIAS) for short-term visits to Schengen countries, including Denmark. This is not a traditional visa but an online authorization valid for three years or until your passport expires.
See VFS Global for visa applications, and the US State Department’s Denmark page for the latest details.
Tax Residency
Denmark determines tax residency based on physical presence and ties to the country. Residency status significantly impacts tax obligations, as Danish tax residents are taxed on worldwide income, while non-residents are only taxed on income sourced from Denmark. Here’s how it works:
You are considered a Danish tax resident if:
- You stay in Denmark for more than six consecutive months, including short trips abroad (e.g., vacations or work-related travel).
- You establish a permanent home in Denmark (even if you haven’t stayed for six months yet). This applies if you rent or own a home that is available for your use at any time.
If you don’t meet the residency criteria, you’ll be classified as a non-resident and taxed only on income sourced in Denmark, such as salary from Danish employment, Danish rental or business income, and dividends from Danish companies.
Special Expat Tax Scheme
Denmark offers a special expat tax regime for eligible highly paid foreign employees and researchers. Instead of progressive tax rates, you pay a flat 27% income tax (plus labor market contributions, totaling 32.84%) for up to 7 years (as at 2024). The scheme applies provided you haven’t been tax-liable in Denmark in the past 10 years, and you meet salary conditions. See SKAT.dk for the latest figures and eligibility criteria.
Tax Deadline
In Denmark, the tax year follows the calendar year, from January 1 to December 31. The deadline for filing your tax return (known as “Selvangivelse”) is July 1 of the year following the tax year. For example, you would need to file taxes for 2024 by July 1, 2025.
If you work for an employer, SKAT pre-fills your tax return based on available information, but you need to review and confirm the details. If you’re self-employed or own a business, you must submit your tax return by July 1. However, if you have a more complex tax situation, the deadline may vary.
US-Denmark Tax Agreements
The US and Denmark have a tax treaty to avoid double taxation by determining where you owe taxes based on residency and income type. This prevents double taxation on wages, pensions, self-employment income, and other earnings. The Relief from Double Taxation clause allows for tax credits, letting you offset taxes paid in Denmark against your US tax liability, and vice versa.It also reduces withholding taxes on dividends, interest, and pensions, helping you keep more of your income.
In addition, the US-Denmark Totalization Agreement coordinates social security benefits if you have worked in both countries. This prevents paying social security taxes to both systems and allows you to combine work credits from both countries to qualify for benefits. These agreements make life simpler for expats, remote workers, and retirees with financial ties to both countries.
US Expat Tax Essentials
US Tax Deadlines
You are probably used to the standard April deadline, but did you know that as an expat you have an automatic filing extension to June and you can apply for a further extension?
| Standard Filing Deadline | April 15th |
|---|---|
| Automatic Extension for Expats | June 16th |
| Deadline for Expats Filing an Extension (file by June 15th) | October 15th |
| FBAR Deadline for Expats | October 15th |
| Deadline for Expats if you Filed a Second Extension | December 15th |
Get your email reminders about upcoming deadlines!
First-Time Filers
If you didn’t know you had to file your US Taxes while living abroad–don’t worry, you’re not alone! Luckily, the IRS has a way for you to catch-up without paying any additional filing fees!
The Streamlined Filing Procedure is a special process for US expats designed to help people who may not have realized their obligation to file catch up on missed returns. The procedure is streamlined in the sense that it simplifies the filing process—expats only need to file the last three years of tax returns and the last six years of Foreign Bank Account Reports (FBARs).
One of the best things about the Streamlined Filing Procedure is that it waives penalties for those who haven’t willfully failed to file their taxes. You’ll need to provide a reasonable explanation for why you didn’t file, but as long as you weren’t deliberately avoiding taxes, this procedure can help you get back on track without major consequences. The only catch is that you need to use the Streamlined Procedure BEFORE the IRS contacts you or you could be subject to heavy fines.
Foreign Earned-Income Exclusion
As a US expat in Denmark, you can use the Foreign Earned Income Exclusion (FEIE) to reduce your US tax bill. The FEIE allows you to exclude up to $126,500 of your foreign earned income from US taxation. This means if you qualify, you won’t have to pay US taxes on the income you earn in Denmark up to that limit. To claim the FEIE, you’ll need to meet specific requirements, including as the Physical Presence Test or the Bona Fide Resident Test, which essentially determine how long you’ve been living and working in Denmark.
Keep in mind that the FEIE only applies to income earned through employment or self-employment. If you’re earning income from other sources, like investments, the FEIE doesn’t apply. Also, although you can use the FEIE to reduce your US tax liability, it doesn’t exclude you from other obligations like self-employment taxes, which still apply if you’re self-employed.
The Foreign Tax Credit
The Foreign Tax Credit (FTC) is another US tax benefit that helps you avoid double taxation. The FTC converts what you’ve paid in foreign taxes into a credit that you can use to lower your US tax liability. You can apply this dollar-for-dollar credit to various types of income, including wages, self-employment income, and other foreign earnings. In Denmark, where income tax rates can be relatively high, the FTC can drastically reduce, or even eliminate your US tax liability.
For US expats in Denmark, the FTC works well in combination with the FEIE. If you earn more than the FEIE limit, the FTC can help you offset the taxes you owe in the US on the income above that threshold. To claim the FTC, you’ll need to file Form 1116 when submitting your US tax return.
No matter your situation, our expat tax software will ensure you take advantage of the best benefits available to you.
Read more: Expat Tax Benefits to Avoid Double Taxation.
Raising Your Family in Denmark
Denmark offers strong support for families, making it an attractive place to raise children. The country prioritizes work-life balance, with generous parental leave, affordable childcare, and excellent education options. Safety, clean environments, and a focus on well-being create a family-friendly atmosphere where kids can thrive.
Key Benefits for Families in Denmark
Generous Parental Leave – Parents get up to 52 weeks of paid leave, with flexibility in how they share it.
Affordable Childcare – Public daycare is high-quality and subsidized, with a maximum cost cap.
Free Education – Public schools and universities are tuition-free, and international schools are available.
Work-Life Balance – Shorter working hours and flexible schedules help parents spend more time with their children.
Financial Support – Families receive child benefits (Børnepenge), paid quarterly to help with expenses.
Safe & Healthy Environment – Low crime rates, clean cities, and access to green spaces promote a high quality of life.
Healthcare for All – Denmark’s universal healthcare system ensures that children and parents get free medical care.
US Child Tax Credits
If you’re a US expat living in Denmark, you may still be eligible for the US Child Tax Credit. The IRS allows US citizens and residents, including those living abroad, to claim this credit for qualifying children under the age of 17. The credit can provide significant financial relief, offering up to $2,000 per eligible child, depending on your income. Even if you’re not paying US taxes due to the Foreign Tax Credits, you can still receive the Child Tax Credit if your income is above a certain threshold.
Self-Employment for US Expats in Denmark
Denmark has a progressive tax system, meaning you’ll pay taxes based on your income level. As a self-employed individual, you must register with the Danish Tax Agency (SKAT) and obtain a CPR number. You’ll be required to file annual tax returns, and Denmark taxes worldwide income, so you must report all income, including any earned from outside Denmark. You can also deduct certain business expenses, which can help reduce your taxable income.
The US-Denmark Totalization Agreement ensures that social security taxes (including self-employment tax) are paid to the country where you are a tax resident.
Retirement in Denmark
Denmark offers a safe environment, plenty of green spaces, and strong social welfare, creating an inviting place for retirees. The country offers an extensive network of services for seniors, including pension benefits, subsidized healthcare, and recreational activities. With its high standard of living and emphasis on well-being, Denmark could be the ideal place to enjoy your retirement.
US Social Security benefits are taxable in the US, but you may also face taxes in Denmark. However, the US-Denmark tax treaty helps ensure you won’t be taxed twice on the same income. Additionally, Denmark offers favorable pension tax benefits, including tax deductions on pension contributions. You need to file a US tax return, but the FTC can help offset taxes paid to Denmark.
Individual Retirement Accounts (IRAs)
Social Security payments typically don’t provide enough for most people to retire comfortably. Retirement planning and investing are important considerations for US expats looking to secure their financial future. US citizens in Denmark have several options to invest, with Individual Retirement Accounts (IRAs) being among the most popular for those who still have ties to the US tax system. However, these accounts come with some limitations, such as annual contribution limits. For instance, you can only contribute up to $7,000 per year ($8,000 if you’re over 50), which may not be sufficient for many, depending on their income.
To contribute to an IRA, whether Roth or Traditional, you must have taxable compensation reported on your US tax return. This means that, even if you’re living in Denmark, you’ll need to report your foreign wages or self-employment income and ensure it’s still taxable in the US to be eligible to make contributions. Income excluded through the Foreign Earned Income Exclusion is not eligible.
Read more: IRAs for US Expats
Get Expert Help With Your Expat Taxes
We know there’s a lot to consider, but filing your US Expat Taxes in Denmark doesn’t have to be complicated. Our expat tax software is designed by expats, for expats. Our aim is to ensure we apply the greatest tax benefits to reduce your US liability as much as possible, all while making the process fast and painless!
Join the thousands of US expats who trust us to file their taxes every year for our excellent service and affordable packages. Sign up to MyExpatTaxes today!
Written by Nathalie Goldstein, EA
Nathalie Goldstein, EA is a leading expert on US taxes for Americans living abroad and CEO and Co-Founder of MyExpatTaxes. She contributes to Forbes and has been featured in Forbes, CNBC and Yahoo Finance discussing US expat tax.
March 10, 2025 | Country Guides |
