Employment & Payroll
Working in Denmark as an independent contractor our employed solutions – also known as Umbrella Services – are based on the many years of experience, local knowledge and presence. We ensure you are fully compliant by removing the tax liability from you as an individual, the agency and most importantly, the end client.
We do not take part in the recruitment / placement process, but solely focus on the handling the in-country remuneration in a professional and compliant way.
In 2012, the Danish Government changed the tax rules, meaning a independent freelancer / contractor working B2B for a Danish entity, most likely is taxable from day one, for the days actual worked in Denmark – even if the assignment is for less than 183 days. The liability for any non-compliance is addressed to the ultimate end-client / Danish entity.
In Denmark compliant contracting can be done in different ways. Each set up is dependant on the contractual terms and personal circumstances and as such, a fixed retention rate cannot be guaranteed. However the overall net retention rate, based on the ETS (Expat Taxation Scheme – §48e) is approx. 67% – being the most optimal solution.
With our fixed fee structure, you are paying for the actual service provided as oppose to a percentage of your earned income.
With GTS Nordic, you only have to concentrate on what you do best: Your line of business.
Pre-calculation of retention rates
Based on the terms offered, we go through your tax options to find the best possible set-up for you. We provide you with a detailed calculation of your expected take-home, which you can then go over with your own accountant/ financial advisor before deciding to take the assignment.
Payment of taxes and fees
When working in Denmark, income taxes are to be reported and settled on a monthly basis. With an employed solution, we take care of everything and ensure that, not only the tax payments, but also the various Mandatory Social Security contributions are paid in due time. As the legal employer, we stand liable for any irregularities.
Due to the double tax treaty between Denmark most countries, your income will not be double income taxed – and tax credit can be obtained in home country.
“Contractors who have won a contract in Denmark may find the most effective and hassle-free way to trade is under a local payroll solution utilizing the Expat Tax Scheme – ETS”
Martin G. Rode, GTS Nordic Denmark
I am a job seeker - can you assist?
No, we are not unfortunately able to assist you with placement or recruitment services, but only a compliant handling of your business in Denmark.
What are your payment terms?
The payment terms are always mirrored from the agreement with the Agent / End-client. Once received, our payroll and net payment will be carried out normally within 24 hours.
Is Express payment an option?
We are able to facilitate express payment if required. Once the the approved timesheet has been received, we can payroll the hours/days you have worked and forward the net amount direct to your account.
Can I use my Ltd. company?
Yes, but it will not be an advantage. You will need to establish your company in Denmark. And by using your own company, you will not qualify for the Expat Taxation Scheme. So you will most likely end up paying more taxes than need be. Furthermore, the Tax Authorities might see your company as fully liable for taxes and VAT, as all the activity of the company is in Denmark.
Duration on the ETS?
You can be taxed on the ETS (Expat Taxation Scheme – §48e) for a maximum of 5 years. You are able to leave the ETS and return at a later stage. Please note, the maximum duration is 5 years during a lifetime. You are furthermore able to change employer, as long as the employer fullfils the requirements as a Danish employer.
At GTS Nordic, our team of specialists provide a high level of service, ensure dedication and focus on your unique needs.
We arrange for all statutory reporting to Danish authorities, such so that you have one less thing to worry about. We are able to provide and facilitate Danish payroll in accordance to local legislation – tailored to your preferred set-up and requirements.
To handle employee(s) in Denmark as a foreign entity can be tricky. It is essential:
- that the set-up is customised to reflect the present and expected future ventures, consequentially ensuring future business in Denmark.
- If you wish to handle the employee(s) via a subsidiary, a branch, or using a local representative, we can assist you securing a smooth and competitive solution.
As well as monthly payroll handling we manage all areas within payroll administration such as company registration, VAT, local registration and on-boarding for your employee(s). Some of our services include:
- work and residence permits
- general mobility services
- help-desk providing assistance with tax returns, opening up bank accounts etc.
We ensure to keep you well informed on legislative changes to ensure on full compliance with local legislation.
Our payroll consultants and accountants have focus on your data being processed timely and correct in order to secure an on-time payment of salaries and correct reporting/settlement towards the different authorities.
Our team take a consultative approach to ensure we cater to:
- Management of all aspects of payroll administration
- Flexible solutions for temporary consultants
- Ensuring complete tax and legal compliance
“..We do not offer a “one-fits-all” solution as we know that every person operating in Denmark have different needs at different times. …”
If you are to work in Denmark, Danish taxes are most likely payable from day one
- Expat Taxation Scheme (ETS): Benefit from a flat 27% tax rate plus a labor market tax of 8%
- The normal salary tax in Denmark is combined by labor market tax of 8%, a monthly tax relief and a tax rate between 35-51,95%.
“… GTS Nordic continue to offer a first class service to expats, including registration, taxation advice and general in-country orientation …”
– Peter S. Farmer, Validation Specialist, Ireland
Is there a minimum amount of employees?
No, we are able to handle one single person or 250 persons – and the recommend set-up might change in accordance with how your business develops in Denmark.
How much is the Employers Social contribution?
In Denmark, basically all the social security costs is included in the employees income tax. The employer costs is therefore only approx. 80 € / month / person.
What tax schemes can GTS faciliate?
We are able to handle all the different tax schemes such as the Normal Progressive Income Tax, The §48e – Expat Taxation Scheme, HydroCarbon Taxation and the International Hired-out of Labour Tax.
When do you run the monthly payroll
Your payroll is processed once a month and typically the net payment is made available for the employee(s) at the last working day of the month.
Do you have fixed costs?
The payrol fee depends on the actual services required, the complexity and the number of persons to be pay rolled.
No two clients are alike!
The immigration area is characterised by complicated, and ordinary people’s opaque and constantly changing rules. At the same time, the area is one of the subjects that has the greatest focus and attention in the public.
We understand each case is individual. Our trained team of specialists provide unique support for partners who are undertaking overseas assignments. Our specialist team collaborate closely with the Danish Immigrations to ensure we provide a single solution to your employee’s immigration requirements.
We assist with:
- Work and residence permit
- Family residence permit
- GTS Nordic is Fast- track certified – This enables your job start within 48 hours
- Complex tasks, processing visa entry, full assistance with Work and residence permits/family residence permits
- Delivering efficient but compliant results – full track on International Immigration Law
GTS Nordic is certified by the Danish Immigration Authorities to pre-approve work permits for non-EU citizens. This allows contractors with an employed solution, an immediate job start (48 hours). We take control of the complete application process from start to the end – to secure a hassle free entry into Denmark.
3rd. party registration is also available for Danish Companies. We can facilitate the work and residence process for the foreign NON-EU employees. Please observe the normal processing time as a 3rd. party is approx 40 days.
Did you know?
“The only way to do great work, is to love what you do! …
I review and submit many application documents and forms each month, always assuring to fulfil the prerequisites of the Immigration Authorities and ensure that the handling time is kept to a minimum”
Zeena Abdulali, GTS Nordic
I am a job seeker and I need a VISA/work permit.
When you have an actual agreement regarding an assignment in Denmark, we can assist you with the practicalities. If you are a job seeking, we are unfortunately not able to assist.
Can I bring my family along to stay with me?
Once your work permit has been approved, a family permit can be applied for. As long as your family adhere to the conditions set by the Danish Immigrations, they may stay with you during the entire duration of your contract.
Why should I choose Denmark as oppose to many other European Countries?
Many expats are pleasantly surprised by these characteristics of Danish work culture. They believe strongly in work-life balance which is something you do not find in other European Countries.
How long does it take to process my application?
Benefiting from our Fast-Track certificate, we are able to have a work and residence permit processed in as short a time as 48-hours!
How am I able to come to Denmark to work?
Once you have been offered a job and have a Contract of employment, we would submit a work and residence permit application on your behalf. Once it has been approved by the Danish Immigrations, you are able to commence working here in Denmark
Securing a job contract can often be the easiest part of relocating. The next step is to plan and carry out your move, and we know that when you are relocating, it can be somewhat daunting. Learning the language, the country and a new job can be difficult to juggle all at once.
GTS Nordic is a premium service company catering to the needs of all foreign specialists who are to work in Scandinavia enabling our team to assist Scandinavian and International Companies with any mobility assignment.
Our expert team tailor to the needs of each individual at each stage of your move – prior to arrival, during your assignment and once it is time to leave again.
We are privileged to work with global partners to ensure you arrive in to your new settings with ease. We inform and guide you of every step of the process to ensure all mandatory registration is fulfilled.
We guarantee a professional service solution where we assist and guide you through the whole relocation process. We understand that good preparation and a keen sense of detail is the key to success and our aspiration to remain Denmark’s premier provider keeps us striving to go that extra mile.
With our In-depth understanding of International mobility, we provide all the essential information to assist in getting you and your family established in Scandinavia.
GTS Nordic can assist in every aspect of relocation to include:
- Airport pick up
- Temporary Accommodation
- Spouse assistance
- Settling in
- Cross-cultural trainings
- Learn the language
- Mandatory Registration Guidance
“Working with GTS was a convenient and straightforward choice. They pushed me to get my registration done, made sure I was prepared for each step, and let me focus on getting on with the project.”
Lee-Ann Smith, QA Manager, Manchester, UK
What is the most difficult part of Relocating?
Understanding the new Culture and embracing new customs can initially be a difficult part of an assignment, particularly when the culture is vastly different from what you are accustomed to. Researching the culture and keeping an open mind will assist you greatly in dealing with new situations that will constantly arise. The most efficient way in which to conquer these challenges is to seek Cross Cultural Training either prior to departure, or at your new destination. We can arrange this for you.
Are there international schooling options?
We can assist and guide you to find a school which suits best your children’s needs. There are many International Schools as well as public schools which base their education on the International/European Montessori system so you can be assured that your child will continue to be provided with a high level of education.
Do I need to learn the language?
Speaking some Danish will also make it easier to socialise with the Danes and build a network as well as to get a job. As an international student, employee or accompanying spouse in Denmark, you can take Danish lessons for free, however as children are now taught English as a second language, it is never a problem to ever find anyone to help in English.
When should I start looking for somewhere to stay?
The property market moves very quickly Denmark, so it is best to only start your home search a month to three weeks before you want to move. Our preferred rental agency partners are always ready to assist. GTS Nordic are able to search, secure and sign a rental lease agreement on your behalf.
When I am ready to leave Denmark, what should I do?
We assist you with your de-registration and guide you on how to notify all the local authorities.
Is CPR registration mandatory?
Residents of Denmark are legally required to have a CPR number. CPR number is your access number to a range of services in Denmark. You will need it to open a bank account, get a Danish phone number, loan books from the library, take out insurance, pay tax, receive salary etc.