How dividend tax works in Denmark
Danish dividends face the same share-income bands as gains: 27% on the first DKK 79,400 a year for singles, double for spouses, and 42% above.
Companies withhold 27% at payout. Residents settle the bands in the annual assessment, while non-residents claim treaty or EU parent-subsidiary relief down to 15% or zero.
Refund claims now run under a five-year limit after a 2026 Supreme Court ruling. Late paperwork can permanently cost the withheld amount.
Tax rates at a glance
- Lower band rate
- 27%To DKK 79,400
- Upper band rate
- 42%
- Withholding at source
- 27%
- EU parent rate
- 0%
- Typical treaty rate
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHolding companiesFamily officesHigh earnersCross-border shareholders
Watch out for
- Withholding is not the final rate for residents. A 27% deduction still leaves 42% due on dividends above the yearly band.
- Foreign shareholders must file for relief. Without treaty or directive claims, the full 27% sticks even where 15% or zero was available.
- The five-year refund window is now settled law. Old claims and new payouts alike need timely filing with residence certificates.
- Dividends inside the share-savings account are covered by its 17% yearly charge instead of the bands, which suits small portfolios.
Frequently asked questions
Does Denmark tax dividends?
Yes, at 27% up to DKK 79,400 a year and 42% above, with 27% withheld at source.
What withholding applies to dividends leaving Denmark?
Domestic law withholds 27%, reduced by treaties to 15% or less and to zero for qualifying EU parents.
Are dividends and share gains taxed the same?
Yes. Both fall in share income with identical 27% and 42% bands and the same yearly thresholds.