Danes’ Tax Cuts Funded by Migrants

February 9, 2018 Taxation in Denmark

Danish taxesCOPENHAGEN – Danish citizens will soon enjoy a tax cut, however, it will be funded by recent migrants and those who cannot speak Danish.

Earlier this week an agreement was reached between political parties in Denmark, which will lead to lower tax obligations for Danes by shifting a portion of the tax burden to migrants.

The government’s intended tax cuts are expected to result in a drop in tax obligations of between DKK 1 850 and DKK 3 150 per year.

The tax cuts will be funded by restricting access to social welfare, mainly be ensuring that welfare can only be received by individuals who have lived in Denmark or another EU country for 7 of the last 8 years.

In addition to the welfare changes, the government hopes to find extra revenues by introducing a cost to the Danish language classes, which are currently free.

From July 2018 the Danish language classes will carry a cost of DKK 2 000 per module, which will result in a total course cost of DKK 12 000.

Further, the classes will have a refundable deposit of DKK 1 250 per module, a measure aimed to ensure that individuals who start the course will have a high motivation to complete it.