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WORKING IN DENMARK

How can you get a work permit in Denmark if you are not an EU national?

If you want to work in Denmark as a non EU citizen, you must apply for a residence and work permit and then get extensions to this, if you want to work in Denmark longer-term. Here's a guide to what you need to know.

How can you get a work permit in Denmark if you are not an EU national?
There are several routes through which you can apply for a work permit in Denmark. Photo of commuters on their way to work on Dronning Louises Bro, Copenhagen: Thomas Lekfeldt/Ritzau Scanpix

The rules regarding residence and work in Denmark are administered by the Danish Immigration Service and The Danish Agency for International Recruitment and Integration (SIRI) under the Ministry of Immigration and Integration.

As an EU citizen, you can freely enter Denmark and begin to work upon arrival without needing a permit to work. The case is different for those who are not EU citizens.

There are various ways to get a work permit, depending on your profession. A list of different types of work sectors and requirements needed, can be found on the website nyidanmark.dk.

These include Fast-track scheme, Pay limit scheme, Positive lists, Researcher, Employed PHD, Guest researcher, Special individual qualifications, Herdsmen and farm managers, Establishment card, Start-up Denmark, Trainee, Certification, ESS Scheme, Authorisation, Labour Market Attachment, Drill rigs and other mobile workplaces, Volunteer, Sideline employment, Employment for adaptation and training purposes, Work permit for accompanying family members.

On 1st April 2023, changes to Denmark’s work permit rules came into affect, making it easier for companies to hire internationally.

Supplementary Pay Limit Scheme (Beløbsordning)

This enables you to get a work permit based on the amount of your salary. Due to the immigration rule changes, this pay limit is now 375,000 kroner per year.

So if you have a job offer with a salary of at least 375,000 kroner per year, you can get a work visa based on the Supplementary Pay Limit Scheme (it is technically a separate programme rather than a revision of the existing one).

It can be applied for by third-country (non-EU) nationals offering work by a Danish employer. Working hours must be at least 37 hours per week. You don’t need a specific educational background or a job within a specific professional field. If you have requested asylum in Denmark and have been offered a job with a salary of at least 375,000 per year, you can also apply based on this scheme. 

The employer must declare that the job position has been posted on Jobnet and EURES for at least two weeks prior to applications. SIRI runs spot-checks to verify the declarations. 

The scheme can only be used when seasonally adjusted gross unemployment has not exceeded an average of 3.75 percent in the three months prior to applying. As Denmark is currently experiencing a labour shortage, this is not likely to happen in the imminent future, but it could eventually come into play.

It should be noted that jobs given to non-EU citizens hired internationally are subject to international classifications ensuring that if the role being hired for was normally paid 425,000 kroner, for example, employers will still have to pay this level, and not the 375,000 kroner minimum.

Pay Limit Scheme

This is the old scheme, where the salary requirement is a minimum of 448,000 kroner per year.

The same conditions as the Supplementary Pay Limit Scheme apply, except the job does not need to have been advertised on Danish portal Jobnet and the EURES portal for at least 2 weeks prior to application and gross unemployment levels do not affect applications. But the salary offer must be at least 448,000 kroner per year.

READ ALSO: Pay Limit Scheme: What to know about the changes to Denmark’s work permit programme

The Fast-Track Scheme makes it faster and easier for certified companies to recruit foreign employees with special qualifications to work in Denmark. It also allows the employees to work both in Denmark and abroad. 

If an employer and employee agree they want the new job to be started quickly, the employer can submit an application under the Fast-track Scheme on behalf the employee.

By registering for the scheme, employers can enable their foreign hires to be granted a temporary work permit so they can start their job immediately after arriving in Denmark, or – if the employee is not exempt from Danish visa rules – get them a permit including an entry visa within 10 days.

The rule changes from April 2023, mean companies with ten employees can make use of the scheme, as opposed to the previous requirement of 20 employees. 

The new rules have also given the scheme a “fifth track”. This means the scheme can be used by non EU nationals employed by a certified company through the Supplementary Pay Limit scheme, with an annual salary of at least 375,000 kroner.

The new fifth track exists alongside the four other tracks. These include the regular pay limit track, which still has a minimum salary of 465,000 kroner, short-term workers, researchers, and people who will be receiving or giving training during their stay in Denmark.

In some instances, you will need Danish authorisation or temporary authorisation for your profession in order to be granted the work permit. This primarily applies to professions which are regulated by law, such as lawyer, financial advisor, or doctor, for example.

More details on each of the tracks can be found on the SIRI website, the agency which processes work permit applications.

READ MORE: Fast Track Scheme: What are the new rules on Danish work permit programme?

The Positive List for people with a higher education or certain work skills, is a list of professions experiencing a shortage of qualified professionals in Denmark.

If you have been offered a job included in the Positive List, you can apply for a Danish residence and work permit based on this scheme.

The Positive List for people with a higher education and for skilled work is updated twice a year on 1st January and 1st July.

The new work permit rules mean more titles have been added to the list from April 2023. This includes  “regional labour market councils” and “specialised a-kasser” (unemployment insurance providers).

For requirement details of other work sectors, you can find more at nyidanmark.dk.

Foreign graduates of Danish universities 

This applies to foreign nationals who complete degree programmes with a Danish Professional Bachelor’s (vocational), Bachelor’s, Master’s degree or PhD degree.

Under the new rules, these students will automatically be given a three-year (a longer period than the two years given under the old rules) “job seeking period” in which they have the right to live and work in Denmark.

The student must not give up their Danish address or stay abroad for longer than six successive months, or work in other Schengen countries.

Start-up Denmark scheme for entrepreneurs

Start-up Denmark is a scheme for foreign entrepreneurs. Two-year work permits can be granted based on a business idea which must be approved by a panel of experts appointed by the Danish Business Authority. If the business is successful, the permits can be extended for three years at a time.

The scheme can be used by both individuals and teams of up to three people who want to start a business together in Denmark through a joint business plan. You must provide documentation that you have sufficient funds to cover your first year in Denmark. If your family is accompanying you to Denmark, you must also provide documentation of your ability to support them.

The business or the Danish branch of the foreign business must contribute innovative ideas and potential for development to the Danish business community. You can read more about the evaluation criteria on the webportal of the panel of experts.

As with the Positive List, the April 2023 rule changes have opened up the scheme to a broader range of applicants.

READ ALSO: How long can you leave Denmark for and not risk your residency?

What about partners and family members?

A residence and work permit based on a job in Denmark allows your family to come with you to Denmark. 

A permit can be granted to your spouse, registered or cohabiting partner as well as children under the age of 18 living at home.

Holding a residence permit as an accompanying family member to an employee in general allows you the right to work in Denmark. Therefore, you do not need to apply for a separate work permit if you get a job. You are also allowed to run your own business and sign up to a programme in an educational institution.

However, you must apply for a work permit if you want to work for the same company as your partner (who is referred to as sponsor), or if you want to work for a company closely linked to your partner’s company.

How long will my permit last?

Work permits are no longer than four years but you can apply for an extension three months before your current permit expires. So you also need to apply for an extension to residency based on your work permit, which will be on the same conditions as you got the first one.

In order to extend your permit, your employment must not have changed. This means that you must be employed in the same position, by the same employer and under the same or improved terms of employment.

If you change jobs, you need to apply for a new work permit or if your salary or other employment terms are diminished, you must inform SIRI.

If you have a resident permit based on your partner (sponsor’s) employment and their employment is extended, you must also apply for an extension of your residence permit.

Permanent residency

Once you become a permanent resident, you no longer need to extend your work and residence permit.

Permanent residency for non EU citizens is granted after living and working in Denmark for eight continuous years, or four years in certain circumstances. You can apply for permanent residency at anytime and it usually takes 10 months to process at a cost of 6,745 kroner.

If you need any more information or have questions about work permits, you can contact SIRI on their contact page.

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WORKING IN DENMARK

EXPLAINED: The steps for starting a business in Denmark

Whether it's a small start-up or a much bigger venture, there are certain steps to bear in mind when starting a business in Denmark whether or not you're already a resident.

EXPLAINED: The steps for starting a business in Denmark

The process for starting a business in Denmark depends on whether you’re already a resident in Denmark, or if your business is connected to an application for a residence permit, either from the EU or outside it.

Starting a business as a Danish resident

If you already have a residence and work permit in Denmark, it is relatively straight forward to set up your own business.

Firstly, you must register your business online at the official business website virk.dk at least eight days before starting any business assignments. This then gives you a CVR number.

The Danish Tax Authority (SKAT) automatically receives the information from Virk to calculate your tax. You should enter expected business profits or losses in your preliminary income assessment.

You then set up a NemKonto linked to your CVR number. A NemKonto is a bank account assigned for money transfers from the public sector to your business, for example VAT. You can use an existing private NemKonto as your business NemKonto if needed.

When you have registered your business, you can find your business registration certificate by logging on to E-tax for businesses (TastSelv Erhverv) and selecting ’Profil’ and then ’Registreringsbevis’ (Registration certificate). If there are any changes to the business, you must register them at virk.dk.

There are lots of free guides available through the tax agency Skat and The Danish Business Authority, as well as accounting firms like Dania.

READ ALSO: EXPLAINED: What is Denmark’s B-tax and who has to pay it?

Applying for a residence permit through a business as an EU/EEA/Swiss citizen

As an EU/EEA or Swiss citizen, you can apply for a residence permit based on either being Self-employed or having Sufficient funds.

To have a residence permit based on being self-employed, you need to run or co-run a business that’s already established and registered in Denmark.

As part of the application, you need to submit the following documents:

  • Registration of the business with the Danish Business Authority.
  • Annual accounts for the business.
  • Receipts or another form of documentation for paid VAT.
  • Bank statements for your business accounts.
  • Invoices your business has sent or received.
  • Documentation of inventory.
  • Lease or other indication of where the business is to be operated from.
If you don’t meet this criteria, you can opt for a residence permit based on sufficient funds.
The amount of money you need to have in your bank account, is assessed on personal circumstances like age and children.
 
Applying for a residence permit through a business as a non-EU citizen or Danish citizen abroad

If you want to get a residence permit based on being self-employed as a non-EU citizen or Danish citizen abroad, you need to apply for the permit called ‘Start-Up Denmark.‘ Only 75 foreign nationals a year can be granted a permit based on this scheme (1st January to 31st December).

The scheme can be used by both individuals and teams of up to three people who – using a shared business plan – want to start or continue to run a business together in Denmark or conduct business through a Danish branch of a foreign self-employment.

There are a number of requirements to fulfil:

  1. You must be the full or partial owner of the company. This is assessed, by how much of the company you own, whether there are other co-owners, and what tasks each of you have.
  2. You must place an active part in running the business and can’t just be a shareholder.
  3. You must provide documentation that you have sufficient funds to cover your first year in Denmark, including family members. 

The are amounts required in 2024 are:

  • 147,912 kroner without any family.
  • 295,824 kroner with a spouse accompanying you to Denmark.
  • 344,496 kroner with a spouse plus one or more children.
  • 196,584 kroner if one or more children, but not your spouse, are accompanying you to Denmark.

4. Your business idea must be approved.

Business plan assessment

Your business idea must be approved by a panel of experts appointed by the Danish Business Authority, before you can even start the application for a Start-Up residence permit.

This involves submitting a business plan, pitch deck and video pitch. There is advice and guidelines for this on the Start Up Denmark website.

The panel of experts will score each business plan based on four criteria:

  1. Innovation of the business model.
  2. Attractiveness of the business to the market.
  3. Scalability of the business model.
  4. The competencies and resources of the team.

Each judge grades these areas from 1 to 5. An average of at least 3.5 in each criteria passes approval. 

Usually, applications are evaluated within three weeks of submission and once approved, you can submit the application for the ‘Start-Up Denmark residence permit, which can cover the whole family.

If the business idea is not approved, there is the option to appeal or re-submit with improvements.

The permit is granted for up to two years, with the possibility of extending to three years. You must apply for an extension before the permit expires. If your passport expires before the permit does, you have to renew your passport and then apply for a permit extension up to three months ahead.

You must also apply for a new permit if you start a new business or are offered a salaried job. If you wish to take a sideline job, you have to obtain a separate permit

Tax

It’s a good idea to be familiar with “B-skat” or self-submitted tax when you’re self-employed in Denmark.

B-tax (B-skat in Danish) is the tax payable on so-called B-earnings (B-indkomst). If you receive earnings of this type, you are responsible for declaring them and paying tax, as well as Denmark’s labour market contribution AM-bidrag, on this income.

This distinguishes B-tax from other forms of income tax, which are deducted before the pay goes into your account – which is normally the case for employed people.

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Articles in The Local are not meant to replace professional legal or tax advice. We recommend speaking to an appropriated professional in case of further questions.

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