How to Freelance in Denmark
Freelancing in Denmark is common and well-supported – but the tax setup is different from employment. You report income as B-income, pay estimated tax quarterly, handle your own AM-bidrag, and may need to charge VAT. Here’s how it all works.
Overview
Freelancing in Denmark means registering as self-employed (selvstændig), getting a CVR number, and handling your own tax reporting. The biggest difference from employment: no one withholds tax for you. You estimate, report, and pay it yourself through quarterly B-skat payments.
How to register
Register a sole proprietorship (enkeltmandsvirksomhed) on virk.dk using your MitID. It’s free and often instant. You receive a CVR number which goes on all your invoices. See the business guide for the full registration walkthrough.
B-income vs A-income
Employment income is A-income – your employer withholds tax automatically. Freelance income is B-income – you receive the gross amount and pay tax yourself. Both are taxed at the same rates (AM-bidrag + income tax), but the timing and responsibility differ:
- A-income: Tax deducted every month by employer. You see net on your payslip.
- B-income: You receive the full invoice amount. You pay estimated tax in 10 monthly instalments (B-skat) plus AM-bidrag. If your estimate is wrong, you settle the difference in your annual tax return.
The biggest freelancer mistake: spending the full invoice amount. You owe approximately 40-45% in tax + AM-bidrag on your profit. Transfer this to a separate savings account the day you get paid.
Invoicing rules
Danish invoices (fakturaer) must include:
- Your name and business address
- Your CVR number
- Client’s name and address (and CVR if a business)
- Invoice number (sequential)
- Invoice date and payment due date
- Description of services
- Amount excluding VAT, VAT amount (25%), and total
- Your bank details for payment
Use invoicing software: Dinero (free for sole proprietors), Billy, or Debitoor. They auto-generate compliant invoices and track payments.
VAT obligations
If your annual revenue exceeds 50,000 DKK, you must register for VAT and charge 25% moms on all invoices to Danish/EU clients. File VAT returns quarterly through TastSelv. You can deduct input VAT on business expenses (equipment, software, office costs). See the VAT guide for details.
If revenue is below 50,000 DKK, VAT registration is optional.
Deductible business expenses
As a freelancer, you can deduct legitimate business expenses from your taxable income:
- Software and tools (Adobe, accounting software, project management)
- Computer and equipment (depreciated over 3 years if over 14,100 DKK)
- Home office deduction (proportion of rent/utilities if you work from home)
- Professional development, courses, and books
- Travel expenses for client meetings
- Professional insurance
- Phone and internet (business proportion)
Keep receipts for everything. Your accounting software should track expenses alongside income.
Quarterly B-skat payments
SKAT calculates your B-skat based on your forskudsopgørelse (preliminary tax assessment). You pay in 10 monthly instalments (January-October, with August skipped). If your income estimate is wrong, adjust it through TastSelv to avoid a large bill or overpayment at year-end.
A-kasse for freelancers
Self-employed people can join an A-kasse – ASE is popular among freelancers and entrepreneurs. You need 12 months of membership and to meet income thresholds to qualify for dagpenge if your business fails. Join early. See the A-kasse guide.
Common problems
My B-skat estimate was wrong and I owe a lot
Adjust your forskudsopgørelse on TastSelv as soon as you realise. The remaining instalments will increase to compensate. If you wait until the annual return, you pay the full difference plus interest.
A client is not paying my invoice
Danish payment terms are typically 14-30 days. After the due date, you can charge renter (interest) and a rykkergebyr (reminder fee of 100 DKK). For persistent non-payment, use an inkasso (debt collection) service or take the case to fogedretten (bailiff’s court).
I’m employed and freelancing on the side
Completely fine. Your employment income is A-income; freelance income is B-income. Both appear on your tax return. Adjust your forskudsopgørelse to include expected B-income so your monthly tax payments are correct.
Questions and answers
Do I need a business bank account?
Not legally required for sole proprietors, but strongly recommended. Mixing personal and business finances makes bookkeeping painful and increases audit risk.
Can I freelance on a work permit?
Standard work permits (Pay Limit, Positive List) do not allow self-employment. EU citizens can freelance freely. Check your specific permit conditions.
How much should I charge?
Danish freelance rates vary by industry: IT/tech consultants 600-1,200 DKK/hour, designers 400-800 DKK/hour, translators 300-600 DKK/hour. Remember to add 25% moms on top.