Salaries in Denmark - What They Don’t Tell You
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- เผยแพร่เมื่อ 28 ก.ย. 2024
- Two factors that are under the radar for most people when considering salaries and pay in Denmark.
💰Salaries in Denmark - Deep Dive & Link to the salaries list excel here: • Salaries in Denmark - ...
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If we haven’t met before - Hey 👋 I’m Mario. I help people living in Denmark to achieve financial independence and live a great life. Aside from YouTubing I'm a manager in a big company, I wrote two books and have traveled to 140+ different countries.
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Love the analysis. I've had opportunities to work in Denmark, but I never took them because of the salary difference and the tax rates. I did consider that I wouldn't have to work as much, but I never crunched the numbers. While the results from this analysis wouldn't change my mind about the decisions I've made, I think that its important that others look at these numbers and determine if it makes sense for them, because I think it would change some people's minds. At the end of the day, it came to the difference in cost of living vs. salary & tax rates, and it just never made sense for me.
Last time I negotiated a salary here in Denmark I did not do a lot to get a good deal. I was leaving a company as an employee in the beginning of 2022, and offered to become an independent contractor for them, in case they needed me. The money was no longer an issue for me. They accepted, but I have not yet billed them anything. The few times they have contacted me for help it has not been worth my time to write a bill.
At that time I also got a new employment. This time my employer was a really hard negotiator, and we agreed that I could work full time for DKK 7000 per month at a position as CEO. I could not disagree as the company is one I own all of, so I actually negotiated with myself. And today I think this salary is a bit too high because I am in the high tax bracket, paying around 56 percent of my personal income in taxes.
Life is great when you no longer have to worry about your salary, and instead only have to worry about income tax. I could easily pay a lot less in taxes by moving my business outside Denmark. But I do not want to do that because my country has given me so much for free, like a completely free university education and free health care. Now is the time for me to pay back, and I do not mind because I know it will help provide free education for the children in my family.
Thanks for sharing! Though note that company taxes are a lot lower than personal taxes 😀
@@MarioScianHQ Yes, the company tax here in Denmark is only 22 percent, which is low compared to the 56 percent tax I am currently paying as a private person.
Being aware of the tax rules helps a lot, and unfortunately a lot of investors are not aware of this. Even the small investor can save a lot in taxes if he is aware of a few small tax details when playing his cards:
Most of the capital I have invested in my company I earned as a private person (paying taxes when I earned it), but only a small part is equity capital. The rest is a loan from me personally to my company. My company is required to pay interest on this loan to me by the tax authorities, and this interest of about 4 percent is a large portion of my personal income. But the return of this capital invested via my company is a lot higher than the required interest payment. The interest paid can be deducted for tax purposes in my company, reducing company tax. And I can at any time make my company pay back all or part of this loan without being taxed again. Best of all is that I can net this personal interest income with the interest payments on my mortgage on my home, so I get a 100 percent tax reduction on my mortgage interest payments.
Many private investors with high incomes are also not aware that stock tax (Danish: Aktieindkomst) is separate from other personal taxes. So you never pay 56 percent in stock tax, but at most 42 percent.
The most overlooked tax rule for private investors is that the stock tax has to be paid in the same year as it is earned. Otherwise you have to pay an extra percentage, which is not tax-deductible. For dividends the low tax rate of 27 percent is withheld (Kildeskat) before you get the rest, but for income due to selling stocks nothing is withheld. I always keep track of my personal stock tax during the year, and at the end of the year I make a voluntary tax payment of any stock tax not already withheld. This way I avoid paying this extra percentage, and over the years it has saved me over a million kroner.
Please note: These are the tax rules in Denmark, as I understand them from my advisors. Tax rules in other countries are probably different.
“Live in Denmark” or study abroad, corporate gig in Denmark?
There is a big difference between permanent residence for non EU residents vs. “Living in Denmark” and all the ensuing taxation issues vs. Their home countries.
?
OK...I like the way you think. 😅 I don't know a lot about Denmark but in other countries to avoid the tax increase the salaries ar not that big but they add a monthly bonus that companies give for everything. 😊
I would add that the kr. 43000 pr. month is mostly due to a group of very well paid people. As a Teacher it is max pay.
Thanks for sharing !
I earn that, I work in a libery. 😄
@@tmfromdenmark9158
Library? :)
Junior Software Developer here.
I work in a startup and I'm earning 40.000kr before taxes and 25.000kr after taxes.
Hi "Super Dane" 👍 ! Love how you put everything into the to right perspective 😊😊😊 !
Thank you!
Hello, Mario! Thank you for the video; your content has been very helpful to me. I'm a Brazilian architect, and I really want to live in Copenhagen. I did an exchange program in the city and felt very welcome. One thing that attracts me to Denmark is the fact that many large architecture firms are based in the country, so salaries in the field tend to be higher, unlike what happens here in Brazil. Nevertheless, something I've always wanted to do is to have my own architecture firm one day, but I have doubts about the feasibility of that in a country like Denmark. With that being said, do you think it's feasible to start a business in Denmark?
Denmark is not entrepreneur friendly IMO unless you never want to leave Denmark, else they've an insane exit tax
Thanks a lot, there are only taxes, no charges charges ? Cause in France, there are both
They're all put in the same box
the average salary while statistically is true, but if you look at what people on average earn outside of a couple conglomerate corporations, then you will see much different picture. The 43000 a month before tax is unattainable for many people outside of those corporations.
Yes
It’s not true what you are saying! 74% of Danish people get salary of 100.000-300.000 dkk per year before taxation. It approximately 58.000-174.000 dkk after all taxation, which is 7800 -23000 euro per year. ☝️650 euro-1900 euro per month after taxation 🙀😿 👹! What good level of salaries and level of life are you talking about ?😂😂😂😂😂😂😂😂
Check Denmark Statistic and salaries in Switzerland and London, before you make such video with misleading information!
74 % af befolkningen et indkomstniveau mellem 100.000 kr. og 300.000 kr. før skat. ( kilde: Danmarks statistik ).
The data I share is based on the Danish governments own statistics :)
amazing salaries aren't they? might be totally worth feeling the hyggiliggie? :D :D best not to go any near to danmark
Don't forget vacation!
Why do you consider a tax rate of 40%? I heard about numbers closer to 52-55%. But let me know if I'm wrong
40%-ish is the effective tax rate at that level. You only pay 55%+ for the salary after a certain point. (For reference, check: hvormegetefterskat.dk/)
@@MarioScianHQ The tax ceiling is currently 52.07% so even if your income was a trillion kroner, and you only had your personal deduction, you cannot pay more than 52.07% of the remainder in tax. so while a specific tax rate can exceed it, your resulting effective tax rate cannot exceed 52.07.
It is very individual how much the deduction is. When I was living in a rental flat I only had a 8500 kr deduction a month. When I toke a loan and bought a flat my monthly deduction went up to 15.000 kr meaning I was getting 4000 kr more paid a month
You forgetting to tell the people the high price on everything in DK . A flat price rent in DK is min. 2000€ . The bills every month;
Electricity
Ensures
Food
Tlf/ internet
Car price is huge 130% more than any other country in Europe ….
Your salary is going back to the state in the beginning of the month .
Your 3000€ salary is back to the state very quick …. you worked for NOTHING…
Things are very expensive here yes
I agree with you, Mario!
My friends from Ukraine, who have been living here for 3-5 years, say that you will mention the growth of your wealth when you get a promotion till 60k/month. From 60k till 100k you obviously get more money, but you pay more taxes and the level of your prosperity will be the same as before.
Thanks for sharing!
I was offered jobs by two different companies in Denmark as a carpenter and I laughed when they told me the gross salary. It was almost half of what I currently get paid in ireland. I always heard you get paid very well in Denmark but now I known its a lie. They were offering me 410k gross a year which is about 600 euro a week after tax 😆🤣
That's not a bad salary in Denmark, you can live a decent life. Not an amazing one by any means, but...
yk in Italy the average salary is 25k euro a year, it all depends where you live
I confirm...
600 euro a week after tax ? but arent you paid by moth?
@@Rex1987 weekly
Can we consider Biotech as tech jobs? Do highly skilled biologist/biotechnologist have the chance to get good jobs in Denmark, even if they do not own a PhD? :)
Yes the live sciences here is a big industry
I don't know what job you have, Mario, (maybe you're an engineer?) but this "average salary" is NOT what normal people make. Maybe with a university degree and likely including pension contributions (which you won't see before you retire) and holiday contributions. DKK30,000 is a reasonable starting salary for most people without a university degree.
And 15 mins to work....? I know many people and only ONE who commutes like that. It just not reality for many people but we do have a reasonably efficient public transportation system. In Denmark as in any other country, central location = much higher rent.
I appreciate your enthusiasm but the figures are vastly exaggerated.
Fair, it’s hard to generalize for a whole country
@@MarioScianHQ It’s not about the country as such but just like if your feet are in a block of ice and your head in a 200 C oven, you should be comfortable “on average”. 65K is a high salary even for people with an MSc, and a pretty decent salary for specialised engineers.
On the other hand, I do appreciate your kind words about DK. Locals tend to put their country down like it was only a little better than North Korea.
I like how you calculate the salary
Hey maybe you can make a video about how overtime impacts tax on a payslips something like is extra time worth it money wise or you just get slapped wit taxes ;)
Thanks for the suggestion!
@@MarioScianHQ no problem I'm new in Denmark that info would be great as i was searching for it on YT with no luck being explained in English
@@gregk5840 overtime isn’t worth it. Tax man will still feed more into it. Thank me later
Can I ask you about the typical working hours, because I have seen metrics that suggest out of all EU countries, Denmark has the lowest annual working hours, approx 1380, or something like 5.5 per day. I find that quite hard to believe, and it doesn't match my own experience at least working in Finland, which is as shown in your excel sheet, also about 7.5 (excl lunch), which according to the grapevine, has a great work life balance too. I was working less hours in Poland for the same job.
It depends a lot on where do you work, your team, manager, etc. But 7-8 hours incl. lunch is realistic.
There's one factor you don't take into consideration and that's workers productivity per hour. When you say that workers in Denmark work less hours than most places you should mention that Denmark is number 3 in the world in workers productivity per hour. So people working in Denmark are a lot more efficient and generally working harder than employees in other countries.
So yes, you might go home from work a bit earlier if you work in Denmark but you'll also be more exhausted.
Yeah agree
hello mario. thank you for your great videos. I'm a vet and I'm considering working in Denmark but I can't access right info on the internet. do you know how much tax an average vet pay? or how much they get payed per month?
Watch my other video on salaries
Great information Mario as always !
Don't believe it - the numbers are exaggerated!
🥰
I want job in Denmark how i can apply for work visa im a Electrician
Can't help on that sorry!
Sorry but ur salery values are way way off ... The normal dane only makes about 23 - 30.000 danish kr ( 3000 - 4000 ) euro each month before paying to the goverment .. The 40K + jobs is only for the highly paided people or specialists in some kind off fields..
In Copenhagen highly paid people make at least 80K+
@@MarioScianHQ If u read what i said: " The 40K + jobs is only for the highly paided people or specialists in some kind off fields.. " Aka 40.000 or more every month , but u must remember that in Denmark there are more than just the 40% tax ...
Wokrers union : 8%
Normal tax: 38 - 42% depending on your monthly income
Top taxes: 15% adding to the normal tax rates
And in 2024 the top taxe rate off the 15% will bee added once u make more than 640.108 danish kr per yeah.
Extending this. You make even more, not living in Copenhagen.
But a lot of jobs lets you start your work day from the train, living in Odense, I have the same commute time as you, given it's to the train. But my house cost 50% less. That's every month, my loan is 50% less.
You can get a newly renovated house 140m^2 for 2mil, under 25min on bike from the train station.
Thanks for sharing !
2mil of what, euro to buy or dkk to rent (either way sounds insanely expensive, no?)
43k a month cannot be what the avg danish person is earning - it must be the avg salary because of those few with super high salaries. The avg is closer to low-mid 30’s
And you’re forgetting Top-Skat - the 15% extra tax we’re paying on everything above the about 550.000kr/year - so if you’re earning more than about 48-50k a month, you’re paying 15% extra tax on all of that - plus your base tax also increase a bit.
It's the government's own statistics. But, sure, the median salary (not the mean) is likely lower.
For top-skat - where do I forget it? The 40-44% is the effective tax rate
@@MarioScianHQ the 40-44% is inc topskat? I have a base skat of 42%, and then the 15% top-skat on top.
I know there’s a bit of fradrag also - but looking at my last payslip, from my total salary of the month to the paidout, i do get 56.5% of the total in paid-out, so guess you’re right with the 44% - i didn’t realise that was with the fradrag deducted and then topskat calculated in.
My bad :)
I used the same logic for my decision to stop cooking:) I hate cooking, so it costs me more than food delivery cuz I lose 0,5-1 hour of my leisure
Yep you can extend the same logic of “price of time” to a lot of areas of your life
Yeah sure Mario when you take the top paying jobs and mix them with the lower income you'll get this nice average of 40-50 K. pr. months after taxes. But that's a totally disturb pictures off the reality. Only top 5-10% of the population makes huge amounts of money, yes som even milions, but the rest of population dont even com close to that and that's before TAXES. The real average salary for most people is closer to 27.000 - 35.000 monthly and thats before TAXES.
I took the governments own data but yes fair point
Thank you for the video. Could you share the document with the average salaries of Danmark?
Check the video description in this video:
💰Salaries in Denmark - How Much Can You Earn? th-cam.com/video/ry9qB-hZTjY/w-d-xo.html
@@MarioScianHQ Thank you!
Hoi , ben je Nederlands? Ben je al naar Denemarken vertrokken
Excelente vídeo 👍
Do not agree to these tax calculation at all, at 60k salary you will get hardly 33k in hand and for salary more then this you have to pay top bracket tax that means rest of salary is taxed @ 65%
Nobody gets taxed at 65%
I Disagree a bit with you. You forgot about mentioning taxe deduction for long distance commuting ( kørselsfradrag)
I'm making a video about that next week
Hi there, I am from Romania, next step is moving in Denmark (Copenhaga) for me and my wife, long story, can I get in touch with you to get some more info ? Regards !
Just ask the questions under the comments, happy to help
Hi Sir, i have a Portuguese passport. i am very confused to choose between Denmark and Switzerland. please give me your opinion about it, i want to move to Denmark or Switzerland for better life. Which country is better?
You can’t move to Swiss with a Portuguese passport, Swiss is not EU
@@MarioScianHQ Sir many Portuguese people work in Switzerland. But my question is Which country is better for live in work, Denmark or Switzerland?
Swiss salaries are much bigger and Swiss taxations are much lower then in Denmark
@@MarioScianHQ not EU but being part of an agreement that it allows EU Citizen. Same for Iceland or Norway.
6 minute video 6 months Ago :)
How many months are 6 minutes?
ROBNIL
Versus Obil
Or Big L?
6 hours Ago WOW
Do you think ErtSen can win over arten? Or TN? You wrote S :,(
RBI
The taxes are too high..tax should be between 15-20%😊
haha nowhere in the West you've that
I make $3600 a month after taxes
Thanks for sharing!
Also 27000kr after tax is for people working in IT professional if you work like in warehouse or as a driver it is 25000kr-27000kr with tax and after tax you get around 16000r-17000kr depends on your tax deduction
I think a lot of jobs in corporate (not just IT - also sales, marketing, finance) can pay 27.000 kr or more
Wrong
is not effective tax rate 42% in average? first am bidrag 8% of your salary: 100 - 8 = 92%. Second, from 92% you are taxed 38%. Actually is 42% and it goes up or down in according to municipal tax and deductions. But if you wanna have an average picture is 42%
It depends on the salary, remember there's a part of your income that it's almost tax free - I just use this for reference: hvormegetefterskat.dk/
You also have to factor in deductions, like we all have a personal deduction, and then most of us have employment deduction, and of course other common ones are interest and commuters, those all drastically lower your effective tax rate.
@@vrenak i agree but since you don’t know all these conditions, then you get an average with 42%. If you get less tax great for you 😉😀
Can the company sponsor us so that we can get a work permit there?
Companies here regularly sponsor top talent from abroad yes
Please share that excel file:)
It's linked in my other salary video (see video description)
اتمنى ان يستفيد كل من في الدنمارك من هذا الفيديو 👍👍 دائما متألق
Less people own homes in Denmark because they work less hrs and pay higher taxes
Lots of people own their homes in Denmark
@@MarioScianHQ 50% do idiot , USA 70%