Compare taxes and see how much you save moving from Denmark to UK
Both Denmark and the UK have high headline tax rates — but Denmark's combined burden is notably higher at most income levels. The Danish system layers AM-bidrag (labor market contribution, 8%) on top of bottom tax (12.01%), top state tax (15% above ~DKK 588,900), and municipal tax (~25.1% average). Combined effective rates of 43–52% are common for professional salaries. The UK's income tax (20/40/45%) plus National Insurance (8%) produces effective rates of 30–44%. Denmark's significant advantages are its world-class public services: free university education, universal healthcare, one of Europe's most generous parental leave systems, and childcare heavily subsidised. Denmark also offers the Forskerordningen (researcher scheme) — a 27% flat rate for qualifying expat professionals for up to 7 years, which decisively undercuts the UK. Post-Brexit, UK citizens in Denmark require a residence permit for stays over 90 days.
Combined Top Rate
AM-bidrag 8% + bottom/top state tax + municipal ~25%
Additional Rate
Plus 8% National Insurance
At £90,000 income:
That is £1,000/month back in your pocket!
| Income | DK Tax | GB Tax | Savings | 10-Year |
|---|---|---|---|---|
| DKK 400,000 / ~£45,000 | ~DKK 32,000 AM-bidrag + ~DKK 88,000 income/municipal tax = ~DKK 120,000 (~30%) | £7,540 income tax + £2,616 NI = ~£10,156 (~23%) | UK saves ~£7,000 | £70,000 |
| DKK 600,000 / ~£67,000 | ~DKK 48,000 AM-bidrag + ~DKK 160,000 income/municipal tax = ~DKK 208,000 (~35%) | £13,060 income tax + £3,032 NI = ~£16,092 (~24%) | UK saves ~£10,000 | £100,000 |
| DKK 800,000 / ~£90,000 | ~DKK 64,000 AM-bidrag + ~DKK 277,000 income/municipal/top tax = ~DKK 341,000 (~43%) | £23,432 income tax + £3,802 NI = ~£27,234 (~30%) | UK saves ~£12,000 | £120,000 |
| DKK 1,000,000 / ~£112,000 | ~DKK 80,000 AM-bidrag + ~DKK 370,000 income/municipal/top tax = ~DKK 450,000 (~45%) | ~£35,432 income tax (PA phased out) + ~£4,032 NI = ~£39,464 (~35%) | UK saves ~£11,000 | £110,000 |
| DKK 1,500,000 / ~£168,000 | ~DKK 120,000 AM-bidrag + ~DKK 615,000 income/municipal/top tax = ~DKK 735,000 (~49%) | ~£56,432 income tax + ~£4,432 NI = ~£60,864 (~36%) | UK saves ~£22,000 | £220,000 |
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Set Up Compliant Danish or UK Employment →Denmark is significantly higher at most professional income levels. At DKK 800,000 (~£90,000), the combined Danish rate (AM-bidrag + income tax + municipal) is approximately 43% effective vs the UK's ~30%. At DKK 1,500,000 (~£168,000), Denmark approaches 49% vs the UK's ~36%. The UK's 45% additional rate above £125,140 — plus the 60% effective trap between £100,000–£125,140 — reduces the gap at very high incomes. But for typical professional salaries, Denmark is 10–15 percentage points more expensive.
Denmark's Forskerordningen (researcher scheme) allows qualifying foreign employees to pay a flat rate of 32.84% (27% income tax + 8% AM-bidrag) on their Danish employment income for up to 7 years, instead of standard Danish income tax rates that can reach 52–56%. To qualify: you must not have been a Danish tax resident in the 10 years preceding employment; your employer must be a Danish registered business; and your monthly salary must exceed a minimum threshold (approximately DKK 73,100 per month in 2026). The scheme is not limited to researchers — it applies broadly to specialist professionals including tech workers, finance professionals, and executives.
AM-bidrag (Arbejdsmarkedsbidrag, or labor market contribution) is an 8% flat tax on gross employment income that applies from the first krone of earnings. It is calculated before income tax — so income tax is calculated on salary minus the AM-bidrag deduction. Effectively it reduces taxable income for income tax purposes while taking 8% off the top. There is no threshold or upper limit. At DKK 600,000 gross, AM-bidrag takes DKK 48,000 before a single krone of income tax is calculated. Including AM-bidrag, the Danish effective total deduction is considerably higher than the headline income tax rates suggest.
Yes, but the process changed significantly after Brexit. UK citizens are now treated as non-EU/EEA nationals: you need a work permit or residence permit before or shortly after arriving in Denmark. Common routes include an employment permit (kræver a job offer from a Danish employer), the pay limit scheme (for high earners above ~DKK 488,000/year), or the positive list scheme (for occupations in shortage). The freedom of movement that previously allowed UK citizens to simply register and work in Denmark no longer applies. Processing times vary — typically 1–3 months.
Key taxes for UK expats in Denmark: (1) AM-bidrag 8% on all employment income from day one; (2) Income tax combining bottom state tax, top state tax, and municipal tax — reaching 36–52% on taxable income above personal allowance; (3) Danish tax returns (selvangivelse) are largely pre-filled by SKAT, the Danish tax authority; (4) Worldwide income principle — once Danish tax resident, you declare all worldwide income in Denmark; (5) UK pension income and UK rental income may be covered by the Denmark-UK double taxation treaty. If you qualify for Forskerordningen, the 27% + 8% AM-bidrag flat rate may apply instead — check eligibility before accepting a role.