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Is 43,000DKK a month a good salary for Copenhagen?

Hi there,

My family and I are considering moving to Copenhagen for work. The salary is 43,000DKK per month. Is this a good salary to support a young family, considering the 45% tax rate, housing, schooling and daycare and monthly living expenses.

Any advice would be very much appreciated.

Many thanks
Nathan

It's a tough call that depends on a few factors. I recommend you to study the Danish tax system in prior. What you can expect for sure is minimally around 30++% of your net income will be gone for renting. You can expect to pay easily 10000 DKK for a decent apartment in CPH. Companies sometime offer you housing allowance to help you settling in for a year, but that depends. On top of that, taxable income maybe subjected to an additional tax free quota if you bring your spouse, which is not a Danish person. However, I am not 100% sure about this and it is something that you need to check.

Good luck!

Ike

Hey Ike,

Many thanks for such a quick reply - that's really helpful and much appreciated. Would I be right in thinking that the 43,000 salary offered would be after tax, or before? I'm trying to get my head around the danish tax system now, but if 45% tax is taken off the 43K, then that doesn't leave very much at all...

Cheers
Nathan

Yes, it wont leave you much after tax.
But the tax is:

8% for the first 4.800 DKK per month and 36% for the amount about this.
But however, 12.5% of your annual salary is paid back as holiday pay. But you need to finish one year and from the tax you paid, the govt will pay this amount.
A studio apartment inside the 2 zones cost 6.000 DKK at the least.
If you are cooking at home and not eating out on a regular basis, it works out very cheap.

Day care and international schools (cos everything local is in Danish) might be expensive.
You might have to call the schools and find out as I am not familiar in this area.

I am interested to know whether could there is a database that summarizing standard pay scale / salary range benchmark with number of years in specific experiences, degree qualification, skills? Or subjected to HR, the Hiring Manager and the company itself in Denmark?

well, as you know, it is confidential information and you wont easily get that.
But for odd jobs, u will get starting from 100 DKK per hour. It is 37 hrs per week.

But you can use google to search for standard salary for any job and you will get the result in USD and it is pretty much the same amount in Denmark.

Hey, many thanks for responding to this. Yes, it does seem that it will be tight living on this salary and more research is definitely needed.

All the best

How many due u received a green. Card

Bump. 
I don't have an offer yet from this company in Copenhagen but they are interested in me.  Currently living in the US and plan to move in Copenhagen. Is the salary 70,000DKK before tax per month sufficient enough for a family of 3?  Plan is to move myself first, then my wife and son after 6 - 12 months.  Also, need cost in housing and private schools.  Any advice would be much appreciated.  Thank you.

Lee

Also, can anyone please provide the current average salary of a manager in the financial services industry.  Took a quick Google of salary and it shows 70,000DKK a month.

I think you children can have free education in Denmark (if you work and pay tax), but you should check this information again. And how old are your kid? If he/she is young, Denmark will get supports too. You will pay 43% tax out of 70 000, pay 6 000 - 10000 DKK for an apartment for 3. Cooking on your own will save a lot. I'm planing to write how to eat cheap but still good in Copenhagen in my website as well. And you also get free health care, but still pay for medicine. You can receive free lawyer in case you have any problems :)

Thanks, expatolife. 

My son is 7 years old.  Is the tax rate for 2017 at 43%, or it depends on the monthly income?

It is the lowest tax I think. You will pay higher if you have higher income. You should search carefully for SKAT - A Danish Taxtation. It will vary in cases, but as I remember 43% is the lowest. And if you just get to Denmark, you must submit a tax form, otherwise you will be charged highest tax - 63% for your first salary ( I was as well). You can call them and ask about it :) They speak English perfectly and kind and nice too. However you should have a Danish friend next to, because they will say something in Danish at first, and you might freak out.

I just wanna add that if you get charged the highest tax, you called them and they will give back the amount difference.

Thanks. Still live in the US, but I'm speaking with the hiring manager today and again on Monday to discuss....

70,0000 would be a very good pay, indeed, so if your employer will pay you so  much, you don't have to worry in any way.

Taxation is progressive, but we all have a personal deduction before we are taxated. If we take that your wife won't work while here, her deduction will be transferred to you which will lower your tax. There might be some child allowance, but not in the first period, and the child allowance is also income-related so let's forget this in your case.

The tax varies all after in which municipality where you settle down, but let's presume that you settle in Gladsaxe kommune, close to Copenhagen.

If we take that you'll get a pay of 70,000 kroner, the yearly income will be 840,000 kroner plus holiday allowance 15 %, e.g. about 975,000 kroner. If your employer will pay you some relocation allowance, it shall also be taxated.

And living in Gladsaxe kommune the total taxation for 2017 will be 344,421,60 kroner.

All tax is provisionally and will be regulated when the year is over and the income and expenses are known.

Take a look at this website regarding the international schools:
http://www.fyidenmark.com/International … nmark.html
The primary schools in Denmark are good, and the pupils are taught English from the very beginning. Further, they are free.

You and your wife will be entitled to free language courses.

You shall not expect to find an apartment for less than 10,000 kroner plus utilities. Maybe, 12,000 kroner is more realistic plus 2,000 kroner for the utilities Apartments aren't easy to find so it will be of great help if the employer will help with this issue.

Household ...... 4,000 - 5,000 kroner a month will do. Some people will be able to live on a stone, other cannot.

I don't hope it will be needed, but as expatoflife writes it is possible to get free (general) advice by a lawyer in most towns at the library, volutary centre etc., but if you need more than a general advice you have to pay for it, and it won't be cheap.

I hope this will do for the moment.

/Nellie

Hi Nellie,

Thank you for the detailed response.  What is the actual tax rate (344,421,60 kroner) from 840,000?

Will this be the same tax rate at 75000 or 80000DKK monthly?

Thanks again.

Income 1,100,000 kroner a year = tax 402.933,60 kroner

Beregn skat og skattekort 2017
Start af inhold
Resultat af skatteberegningen med de indtastede tal
Personoplysninger    Skatteyder    Ægtefælle
Civilstand    Gift    Gift
Fødselsdato og -år    31.01.1960    31.01.1960
Medlem af folkekirken    Nej    Nej
Antal børn født senest 1/1 2017 og er under 18 år pr. 31. december 2017    Et barn    Ingen børn
Bopælskommune pr. 5-9-2016    Gladsaxe Kommune    Gladsaxe Kommune
Resultat
Skattekort gyldigt fra (dag og måned) (f.eks. 1. juli: 0107)
01.01    01.01
Trækprocent    44   
Månedsfradrag    7.619   
14-dagsfradrag    3.516   
Ugefradrag    1.758   
Dagfradrag    250   
Indkomst og fradrag
Lønindkomst mv.
1.100.000   
AM-bidrag A-indkomst    -88.000   
Personlig indkomst i alt    1.012.000    0
Kapitalindkomst i alt        0
Beskæftigelsesfradrag    -30.000   
Ligningsm. fradrag i alt    -30.000   
Skattepligtig indkomst    982.000    0
Nulansættelse        Nej
Beregnede skatter
AM-bidrag 8,00%    88.000,00   
Bundskat 10,08%    102.009,60   
Topskat    79.860,00   
Sundhedsbidrag 2,00%    19.640,00   
Kommuneskat    233.716,00   
Skatteværdi bund. pers.fr.    -4.536,00   
Skatteværdi sundh. pers.fr.    -900,00   
Skatteværdi komm. pers.fr.    -10.710,00   
Sk.værd. pers.fr. bund f/æ    -4.536,00   
Sk.værd. pers.fr.sund. f/æ    -900,00   
Sk.værd. pers.fr. kom. f/æ    -10.710,00   
Samlet skat, inkl. AM-bidrag    490.933,60    0,00
Kompensation for forhøjede afgifter (grøn check)        -940,00
Tillæg til grøn check        -280,00
Samlet forskudsskat, inkl. AM-bidrag og efter grøn check        -1.220,00
Forskudsskat der indeholdes som AM-bidrag hos arbejdsgiver    -88.000,00   
Forskudsskat til opkrævning som A-skat og B-skat mv.    9

Beregningen af skat for 2017 er sket på grundlag af de indtastede oplysninger. Resultatet er derfor vejledende.

A quick question...
My new job contract is also for 43000 DKK a month (520000 DKK a year).
What will be the net salary given this ? I am married (spouse isnt working at the moment).
Is around 26000 DKK a month (after tax) is possible ?

If we assume you have an income of 520,000 kroner a year, the tax in Fredensborg municipality (Nivå is situated in this municipality) will amount to 136,993.92 kroner.

A travel pass from Nivå to Copenhagen (8 zones) cost 1,260 kroner a month. If you use the employer's Workplus sceme at DSB, it means that this amount 15,120 kroner (1,260 x 12) will be deducted in your income before the taxation. If we change your income to 505,000 kroner, the tax will be 131,835.48 a year. Absolutely a favorable offer.

/Nellie

Thanks for detailed answer.
Much appreciated.

Regards,
Arun

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