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Employ Candidates Compliantly in Denmark

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  1. Overview: Denmark
  2. Global PEO and Payroll
  3. Global HR Compliance
  4. Work Permit for Hiring Expats via Global EOR
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
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Global Employer of Record in Denmark

What Is a Global Employer of Record?

The Global Employer of Record is the perfect solution for companies looking to expand their business by hiring employees worldwide. The Employer of Record is an innovative talent engagement model that helps companies reduce operational costs and maximize efficiency. With a Global Employer of Record, businesses can tap into an extensive talent pool, grow and succeed in today’s competitive marketplace.

Due to the ever-changing regulatory environment, companies are held accountable for compliance with employment and tax regulations across multiple jurisdictions and seek to understand their global employment risk and how to mitigate it. This means that to be successful in the worldwide employment markets, companies must focus on using efficient global HR models, such as Global EOR, that ensure compliance with complex legal requirements, eliminate risk, and support the needs of their business.

How Does Global Employer of Record Solution Help the Danish Startup Ecosystem?

Global Employer of Record (EOR) companies can play a significant role in building and developing the Danish tech startup ecosystem by helping startups access talent worldwide.

One of the main challenges Danish tech startups face is finding the right talent to help them grow and succeed. Denmark has a small population compared to other countries, so a limited pool of skilled workers is available. Global EOR companies can help address this issue by providing startups access to talent from other countries.

By working with a Global EOR company, Danish tech startups can expand their talent pool and hire skilled workers worldwide. This can help them build diverse, high-performing teams that drive innovation and growth. 

Global EOR companies can provide startups with support and expertise in HR, payroll, labour, tax, and immigration compliance. This can help them navigate complex regulations and adhere to local laws.

Global EOR companies can help Danish tech startups expand into new markets and scale their operations globally. They can provide startups with the infrastructure and support they need to establish a presence in new countries, including legal and regulatory compliance, payroll and tax management, and local employment law expertise.

By partnering with Global EOR companies, Danish tech startups can access the talent, expertise, and resources they need to succeed in a highly competitive global market. This can help them build and develop the Danish tech startup ecosystem and produce more unicorns to drive economic growth and innovation in Denmark and beyond.

Employer of Record (EOR) Solution in Denmark

Global Employer of Record is an integrated solution in Denmark that usually provides strategic guidance and a wide array of high-quality, cost-effective services tailored to your specific requirements that can help your company grow and scale up safely. Here are some of them:

  1. Human resources administration, including payroll, tax filing and reporting, benefits administration; background or education checks; and other HR services in Denmark.employment 
  2. Regulatory compliance assistance, including payroll tax law and reporting requirements;
  3. IP protection and offboarding;
  4. Hiring and HR compliance services, helping you navigate local regulations and avoid prohibited HR practices, including discriminatory job listings, Illegal criminal background checks, misclassified workforce, inaccurate payroll, and tax payments;
  5. Human resource support;
  6. End-to-end talent management, including recruiting, onboarding, engagement, performance management, and termination (upon employer approval);
  7. Liaison with legal counsel on employment issues such as discrimination, wrongful termination, sexual harassment, whistleblower protection, non-compete agreements, severance agreements, and other employment law matters.
  8. You need a business visa and work permit to employ expatriate personnel in Denmark.

A Global Employer of Record solution means Express Global Employment can employ the selected candidate or candidates on your behalf in Denmark in record time. We become your trusted partner in Denmark and guide you through local labour laws, thus eliminating any employment risks for you and freeing you from the necessity to go into all legislative specificities or set everything up by yourselves. Also, we will resolve all local labour issues for you, allowing you to focus on your primary business objectives.

Part of the benefits of using our international Employer of Record and payroll outsourcing solution in Denmark is that we can organize work permits and business visas in Denmark required for expatriates’ immigration.

Express Global Employment offers a Global Employer of Record and payroll solution to handle all payroll details while ensuring full compliance with in-country labour and taxation laws.

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Global Employment Services in Denmark

Compliance and legal guidance at every step of the Global Employment Journey. 24/7 local support.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly specialised areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

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Express Global Employment – Your Single Point of Contact and Global Employment EOR in Denmark

  1. 100 % compliant, quick, easy market entry. Express Global Employment acts as your Employer of Record in Denmark, helping you reduce the cost and time associated with local incorporation.
  2. Immediate global employment service coverage in 190 countries
  3. Both a single point of contact and a dedicated account manager for your project for all target countries.
  4. Compliant and secure global employment operations. We help you adhere to all local laws and regulations in 190 countries.
  5. A single contract for all in-country services (employment, immigration, legal, etc.)
  6. A single Global Employer of Record service provider assumes full responsibility for your international employees in multiple countries.
  7. Payments are made within the UK or to the UK bank company account
  8. Fully compliant with standardized procedures and reporting systems
  9. You can delegate to Express Global Employment all HR responsibilities. Payroll & benefits administration, background checks, and HR helpdesk
  10. Standard payroll breakdowns for all target countries
  11. As soon as we receive your request for a project in any country, we will send you a payroll breakdown and offer within 2 working hours
  12. Tailored and 100% compliant employment contract drafts
  13. With Express Global Employment, you can quickly and efficiently onboard and compensate your employees without the risk of legal repercussions
  14. Express Global Employment Global Employer of Record protects your company’s Intellectual Property rights.

Global Payroll Calculator by Express Global Employment

Looking to streamline your payroll process? Check out our Global Payroll Calculator. You can say goodbye to manual calculation’s tedious and error-prone task with automated cost calculations. Let our calculator do the work for you!

  1. Quickly estimate global employment & payroll costs from your desk in real-time.​​
  2. Empower your teams with advanced functionality to make better and faster hiring decisions.​​
  3. Determine the most cost-effective countries and adjust your employment budget accordingly.​​
  4. Budget your global expansion moves accurately in real-time. GPC has done the global payroll and tax math and compliance for you.​​
  5. Calculate and compare total employment costs in 190 countries.​​
  6. Estimate costs for a local and foreign workforce.​​
  7. Remove inaccurate manual calculations from your payroll, and cut payroll budgeting time.​​
  8. Get instant detailed breakdowns of in-country taxes, contributions, and statutory benefits.​​
  9. Eliminate inaccuracies, and save time and money that would otherwise be spent on manual calculations or waiting for quotes from local providers. ​​
  10. Get complete quotes for a comparison of 190 countries in one click.​​
  11. Achieve 100% global employment and payroll compliance.​​

Doing Business in Denmark

Denmark is a popular destination for international companies due to its strong economy, skilled workforce, and favourable business environment. The Danish government is also committed to attracting and supporting foreign investment.

According to the Danish government, in 2021, foreign direct investment (FDI) in Denmark reached DKK 100 billion (approximately USD 14.5 billion), the highest level on record. This represents a significant increase from the previous year when FDI in Denmark was DKK 67 billion (approximately USD 9.7 billion).

The Danish government expects FDI in Denmark to continue to grow in the coming years. In 2022, the Danish government launched a new investment strategy called “Denmark is Open for Business.” This strategy aims to attract DKK 1 trillion (approximately USD 145 billion) in FDI to Denmark by 2030.

More and more global companies are seeing the value of hiring international employees in Denmark to have a presence in this market. With local legislative peculiarities, the challenge is to engage the global workforce risk-free and cost-effectively.

With this in mind, Express Global Employment has designed global employment to help companies like yours expand their international reach or engage the brightest global talent with their projects. Suppose you seek to strengthen your international team with the expertise of a global talent based in Denmark. In that case, if you have already selected a candidate and want him to work for you remotely from Denmark in a legally compliant way, our global employment solution is the way for you to go.

Like every other country, Denmark has its employment nuances, which must be fully observed to ensure 100% compliance. Trust us to handle the global employment and HR side of your workforce management in Denmark so you are sure that none of these nuances are missed and that your employees are employed and paid properly and compliantly.

Comprehensive Employer of Record Solution in Denmark

Global Employer of Record is an integrated solution that is designated to help you rise to the daunting challenges of hiring and managing your remote employees in Denmark, which includes:

  • familiarizing with the country’s employment legislation
  • onboarding of employees
  • payrolling employees on a monthly basis in local currency/ies
  • and arranging for visa and work permit if you need to employ expatriate personnel in Denmark

A Global Employer of Record solution means Express Global Employment can employ the selected candidate or candidates on your behalf in Denmark in a record time. We become your trusted partner and guide you through local labour laws, thus eliminating any employment risks for you and freeing you from the necessity to go into all legislative specificities or set everything up by yourselves. Also, we will resolve all local labour issues for you, allowing you to focus on your main business objectives.

Part of the benefits of using our international Employer of Record and payroll outsourcing solution in Denmark is that we can organize work permits and business visas in Denmark required for expatriates’ immigration.

Recent Employment Tax Updates in Denmark (2023)

Understanding Denmark’s Workforce Hire Scheme

When a company outside Denmark sends an employee to work in Denmark, it’s called the workforce hire scheme. This means the employee is still paid by their home country’s company but works for a Danish company. The Danish company is then responsible for handling taxes for that employee.

Taxes for Employees in Denmark

Employees in Denmark under this scheme pay a flat rate of 30% in taxes on their salary. There are no tax breaks or deductions allowed. They also have to pay a labour market tax, which makes the total tax rate about 35.6%. This tax rule is for employees who aren’t fully taxed by Danish laws because they aren’t staying long enough.

Staying in Denmark and Tax Rules

The special tax rate is only for employees who won’t be in Denmark for more than six months or 183 days over a year. Time spent outside Denmark for holidays doesn’t change this six-month rule. But if the employee leaves Denmark to work elsewhere, it can reset the counting of these six months.

Keeping Up with Tax Rules

The Danish tax office keeps a close eye on these rules, so it’s important for companies to follow them closely. If the rules change, companies must be ready to update their practices to stay compliant and avoid issues with the tax office.

Some of the recent employee and employer tax updates in Denmark include:

Personal Income Tax Rates

In 2023, the tax rates for personal income tax in Denmark range from 12.09% to 15.0%, depending on the income level. The maximum tax rate ceiling is 52.07%, which includes state, municipal, and certain other taxes.

Tax laws and regulations can change frequently, so it’s always a good idea to check with a local tax advisor or the Danish tax authorities for the latest updates and guidance.

Labour Market Tax

The labour market tax is imposed on employment income at a flat rate of 8%.

New Employment Contracts Act

On July 1, 2023, a new Employment Contracts Act entered into force in Denmark. The Act implements the EU Directive on transparent and predictable working conditions, which had an implementation deadline of August 1, 2022. The new rules extend the employer’s duty to inform employees about their terms and conditions of employment and introduce a number of new minimum requirements regarding working conditions.

Expansion of Tax Liability Scope to Include Activities Carried Out in the Exclusive Economic Zone

On June 1, 2023, a new law took effect in Denmark, expanding the government’s ability to tax those participating in activities more than 12 nautical miles offshore but within the country’s Exclusive Economic Zone (EEZ). The new rules apply to nonresident companies, and individuals engaged in a variety of activities, including exploration and production of oil and gas, construction and operation of offshore wind farms, and seabed mining.

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