Freelancing in Denmark as a Foreigner

Freelancing in Denmark is legal, the administrative setup is genuinely straightforward, and the tax system — while complex — is well-documented and manageable once you understand the structure. The main things to get right are: choosing the correct business structure, registering properly, handling VAT correctly, and understanding whether your visa type allows you to freelance.

First: Check Your Visa and Permit

Before setting up anything, understand what your immigration status allows.

EU/EEA citizens: You have the right to work as a self-employed person in Denmark on the same basis as Danish citizens. Register your self-employment and proceed.

Non-EU citizens on a standard work permit: Most Danish work permits (green card scheme, fast-track scheme, positive list work permits) are tied to employment with a specific employer. Freelancing on the side — or switching to freelancing — may not be permitted under your current permit. Check your permit conditions carefully. If you want to freelance, you may need to apply for a different permit type.

Non-EU citizens seeking a freelance/self-employment permit: Denmark has a self-employment permit (selvstændig erhvervsdrivende) for non-EU nationals. The requirements are strict — you typically need to demonstrate that your business will generate sufficient income (often set at the minimum wage equivalent), that there is genuine demand for your services in Denmark, and that you have the qualifications required. This is a complex permit category where legal advice is strongly recommended.

Students: Student visas in Denmark typically allow part-time work (up to a set number of hours per week). Whether freelancing counts against this limit is not always clear. Get written clarification from the Danish Immigration Service (Udlændingestyrelsen) before proceeding.

Choosing Your Business Structure

Denmark has three common structures for small and independent businesses:

Enkeltmandsvirksomhed (Sole Proprietorship)

The simplest and most common structure for new freelancers.

• No minimum capital required
• No formal company registration — you register the name and yourself at virk.dk
• You are personally liable for all business debts (the business and you are the same legal entity)
• Tax: Business income is added to your personal income and taxed as personal income (up to 56% marginal rate for income above approx. DKK 588,900/year). The virksomhedsskatteordning (VSO) scheme allows you to pay a lower company tax rate on reinvested profits — worth exploring with an accountant if your income is significant.
• Best for: Freelancers with low to moderate income who want minimal administration

ApS (Anpartsselskab — Private Limited Company)

The most common company structure for freelancers with higher income or those who want liability protection.

• Minimum capital: DKK 40,000 (can be used for business expenses after registration)
• You are not personally liable for company debts (beyond the initial capital)
• Tax: Company profits are taxed at the corporate rate (22%). Dividends paid to yourself are taxed additionally. Salary you pay yourself is taxed as personal income.
• More administration: Annual accounts must be filed, a board structure is required, bookkeeping requirements are more formal
• Best for: Freelancers earning over DKK 500,000/year, those with liability exposure, those planning to grow or bring in partners

IVS (Iværksætterselskab)

The IVS was a low-capital version of ApS (minimum DKK 1) that was abolished in 2019. Existing IVS companies were required to convert to ApS. Do not register an IVS — the option no longer exists for new companies. If you encounter old guides that mention IVS as an option, they are out of date.

Registering Your Business

Registration is done through virk.dk, the central business portal. The process:

1. Log in to virk.dk using your MitID (Danish digital ID)
2. Select "Registrér ny virksomhed" (Register new business)
3. Choose your business form (enkeltmandsvirksomhed for sole proprietor, ApS for limited company)
4. Enter your business name (for enkeltmandsvirksomhed, your own name or a chosen business name), the business address, and the primary industry code (CVR branchekode)
5. For ApS: you will also need to submit the company's articles of association (vedtægter) — templates are available on virk.dk

For enkeltmandsvirksomhed: the registration is free and typically completed within 1 business day. You receive your CVR number (Central Business Register number) — this is your business's unique identifier, equivalent to an organisation's CPR number.

For ApS: registration takes 1 to 3 business days and involves filing additional documentation. There is a registration fee (approximately DKK 670 as of 2026).

Getting a CVR Number and Why It Matters

The CVR number is used on all invoices, VAT registrations, and business correspondence. Once you have it, you exist as a business entity in Denmark. Clients can verify you at cvr.dk.

Keep your CVR number on every invoice you issue to Danish clients — it is legally required.

VAT (Moms): Registration and Management

When you must register: If your annual turnover exceeds DKK 50,000, you are required to register for VAT (moms). Registration is done at virk.dk.

The VAT rate in Denmark: 25% on most goods and services. This is one of the highest VAT rates in the EU.

How it works in practice:

• You charge your clients 25% VAT on top of your service fee
• You collect this VAT and pay it to the Danish tax authority (Skat)
• You can deduct VAT you have paid on your business expenses (VAT input credit)
• The difference between what you collected and what you paid is remitted to Skat on a quarterly or semi-annual basis (depending on your turnover)

VAT on international clients: If you invoice a business client in another EU country, you typically apply the reverse charge mechanism — you do not charge Danish VAT; the client accounts for VAT in their own country. Include their EU VAT number on the invoice. If invoicing non-EU clients (US, UK, India, etc.), services are generally zero-rated for VAT purposes — you do not charge Danish VAT.

Tax for Freelancers: B-skat and B-income

B-income (B-indkomst): Income from freelancing that has not had tax deducted at source is classified as B-income. This is distinct from A-income (salary from an employer, where tax is deducted through payroll).

B-skat: You pay estimated tax (B-skat) on your B-income in quarterly instalments throughout the year. The rate is estimated by Skat based on your expected income — you can adjust it on skat.dk if your income changes significantly.

The process:

1. Skat sets an estimated B-skat for your expected annual income
2. You pay it quarterly (January, April, July, October roughly)
3. At year-end, you file your annual tax return (årsopgørelse) confirming your actual income
4. If you overpaid: you receive a refund. If you underpaid: you pay the difference (with a small interest charge)

Tip: It is better to slightly overpay B-skat throughout the year than to face a large payment at year-end. Adjust your estimate upward if your income increases.

Business Banking

You do not legally need a separate business bank account for an enkeltmandsvirksomhed, but having one makes bookkeeping significantly cleaner. Mixing personal and business transactions is a common source of accounting confusion.

Practical options for freelancer business accounts:

• Lunar Business: Danish digital bank, no monthly fee for basic accounts, good mobile interface, common among freelancers and small businesses
• Anyday: Digital business banking, straightforward setup
• Revolut Business: International digital bank, useful if you have international clients and need multi-currency handling

Traditional banks (Danske Bank, Nordea, Jyske Bank) also provide business accounts but typically have higher fees and more friction in the opening process for new businesses.

Bookkeeping Requirements

As a registered business in Denmark, you are required to keep accounts and retain records for 5 years. For a one-person enkeltmandsvirksomhed, basic bookkeeping software handles this straightforwardly.

Popular bookkeeping tools for Danish freelancers:

• Billy (billy.dk): Danish software with VAT filing integration, English interface available
• Dinero (dinero.dk): Danish-designed, clean interface, popular with small businesses
• e-conomic: More feature-rich, used by larger freelancers and small companies

These tools automate much of the VAT reporting and help you prepare for annual tax filing. Most integrate with Danish bank accounts via Open Banking.

If your income is above DKK 300,000/year or you have significant business expenses, working with a revisor (accountant) for at least your first year is a sound investment. Fees run DKK 3,000 to 8,000/year for basic freelancer accounts.