Tax & Money

The expat tax scheme, a flat 27% for seven years

Updated July 2026Reviewed July 2026
The one-line versionQualifying researchers and high earners can pay a flat 27% (plus 8% AM-bidrag = 32.84% effective) for up to seven years, instead of the progressive rates. For 2026 you need a guaranteed salary of at least DKK 65,400 a month.

Why this matters so much

The researcher tax scheme (forskerordningen, §48E-F) is the single most valuable thing a qualifying expat can use. Instead of Denmark's progressive rates that can reach ~55% at the margin, you pay a flat 27% plus AM-bidrag - an effective 32.84% - for up to seven years (84 months). On a high salary, the difference over seven years is enormous.

Do you qualify?

  • Salary: a guaranteed monthly salary of at least DKK 65,400 (2026 level), before deductible pension but after AM-bidrag rules as defined by SKAT. This threshold was lowered from DKK 78,000 in 2025, so more people now qualify.
  • Not recently Danish-taxed: you generally must not have been liable to Danish tax in the past 10 years.
  • Researchers have separate rules and may qualify without the salary floor if their role is approved.
The threshold dropped in 2026The minimum salary fell from DKK 78,000/month (2025) to DKK 65,400/month (2026), widening eligibility. If you were just under the old bar, re-check - you may now qualify.

What the 27% covers - and doesn't

The flat rate applies to cash salary, employer-provided phone/internet, the taxable value of a company car, and employer-paid taxable health insurance. Everything else - other income, capital gains - is taxed under normal rules. Crucially, no deductions are allowed against the flat-rate income.

It ends after seven years - plan for the cliffAfter the 84-month period you revert to ordinary progressive rates. If your salary is high, that's a large jump. Factor the end date into any long-term financial planning, and don't assume it renews.

How to get on it

Your employer applies on your behalf when you start, through SKAT. The contract must state a guaranteed salary meeting the threshold. Get the paperwork right at the outset - retrofitting is difficult. Pair this guide with the expat scheme calculator to see your break-even against ordinary tax.

Common questions

Is 27% the whole tax?
No - it's 27% plus 8% AM-bidrag, an effective 32.84%. Still far below the ordinary marginal rate for high earners.
Can I claim deductions like commuting?
No. The trade-off for the low flat rate is that no deductions apply to the scheme income.
What if my salary dips below the threshold?
Falling below the guaranteed monthly minimum in a calendar year can disqualify you. The salary must be guaranteed in the contract.
Does it cover my spouse's income?
No - it's individual. Each qualifying person applies on their own employment.

Verified July 2026 against official sources: skat.dk (Skattestyrelsen), skm.dk (Ministry of Taxation) and borger.dk. Figures are 2026 levels and reset each January - always check skat.dk for your personal numbers. General information, not tax advice - see our editorial policy.

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