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600DKK per hour and 68% net retention (after tax)?

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tomcoin

Hi,

I got a contract offer of 600DKK gross per hour and was told that I can retain 68% of that after tax when going through payroll. That would be something around 65280DKK after tax per month. Is it possible?

I've read that there is some Tax scheme 26% for expats, which I might be able to qualify for.

Is the salary of 600DKK per hour for a contractor senior software engineer in Denmark a a good or and average?

Thanks!!!

Nellie Berg

In 2018 the tax per cent is 27.
http://skat.dk/skat.aspx?oID=97319&chk=215480

IT engineers are always paid very well as they are very sought after, but I have never heard about someone getting such a high pay before. The special tax scheme you should be eligible for is only meant for researchers and highly-paid employees.

These links may give you an impression of the market:
https://karriere.jobfinder.dk/loenstati … -developerhttps://www.reddit.com/r/cscareerquesti … paying_so/https://www.payscale.com/research/DK/Jo … per/Salaryhttps://www.glassdoor.com/Salaries/denm … KO8,25.htmhttps://www.quora.com/What-is-the-avera … in-Denmarkhttps://www.daxx.com/article/it-salarie … -2016-2017

/Nellie

Jean-François

Hi,

I think you should ask your employer to call Skat and try to apply to the scheme. If you satisfy all the other requirements.

From http://skat.dk/skat.aspx?oId=107050&chk=215481
In 2018, the average salary must be at least DKK 65,100 a month before deduction of ... your salary seems to fit in.

I have a couple of friends who were in this scheme and they had it for 5 years. Then you will start paying some serious taxes :D

Good luck

tomcoin

Thanks a lot guys! that's useful info.

Nellie Berg

https://ekstrabladet.dk/nyheder/samfund … ig/7039926

Regarding the pay, today's paper brought this 'pay tester'. Type your pay, and you'll find out how many per cent of the Danes who earn more than you. In your case only 2 %.

The employer shall apply for this scheme online, but I am quite confident that the employer has tried this many times before.
http://skat.dk/skat.aspx?oId=1521371

As always there are some cons and pros you have to take into consideration before choosing what is the right thing for you.

Taxatation due to this scheme means that you'll not be entitled to any kind of deductions before taxation, e.g. the personal deduction of 46,000 kroner for you (and if you have a spouse who isn't working another 46,000 kroner). You'll not be entitled to deduct any payments to a pension scheme.

/Nellie

tomcoin

Thanks Nellie.

Yeah, its bit more than the average salary, but the contracts are always paid more than permanent jobs and each of these has it's pros and cons. Was wondering more how this salary compares to contractors in the same field at my level in Copenhagen. In places like London, for example, it's a common rate.

Have a great day!

Nellie Berg

Denmark isn't a pay leading country. We are all more or less in the same boat why the offered pay is very high, seen from a Dane's point of view.

I have a relative living in London. He doesn't want to go back to Denmark because he can earn much more there, but if we take everything into consideration (rents, house prices, work-life balance) I am not sure that the net pay is less in Denmark than in London.

Regarding the pros and cons, I thought of which taxation method to choose. In your case, there is perhaps not so many cons, but if your pay was somewhat lower, it could be more difficult to choose which of the two taxation methods was the very best.

I am afraid I cannot help you further.  :(

/Nellie

tomcoin

You help a lot already with useful info, thanks so much :)

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