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Hi all,

My husband had a job proposal to earn 42000 dkk per month. The HR told us that they take from that amount around 6000 for the pension fund and the rest (36000 dkk) will be taxed at 31.92% applicable to academia jobs, which leave us with around 24500dkk per month. Is this final amount enough to live in Copenhagen with a pregnant spouse who has no work?

Thanks
Tania

Hi Tania,

Many people would be happy to earn 42,000 kroner a month, but it all depends on profession, location, private or public employee.

Normally, the pension amount is 15 % of the pay. The employer pays 2/3 of the amount and the employee 1/3. If we take that your husband shall pay 2,000 kroner himself, he will be taxated of 40,000 kroner as the amount will be deducted in the pay before taxation as the pension itself will be taxated when it is paid out (like your pay). However, some expats have special schemes as they probably have left Denmark long before their retirement and want to bring the savings with them. Due to this special scheme the pension is taxated currently so you are free to take it with you withour further notice when you go home.

If we take your husband's yearly pay is 500,000 kroner, you have one child, you don't work, and you settle down in Gladsaxe municipality, the tax 2018 will amount to 163,700 kroner. Net around 28,000 kroner a month. That's the normal taxation, but as you mention there is a special taxation of 31,92 % which researchers and highly paid expats are entitled to choose.
http://skat.dk/skat.aspx?oID=97319&chk=214749

As you won't have a work, your husband will profit from your not used personal deduction before he is taxated. If we say that he earns 500,000 kroner and you 250,000 kroner, his tax will not be 163,700 kroner as above mentioned, but now 180,200 kroner. Your tax will be 80,100 kroner.

I guess that your husband is offered a job as a researcher, but whether this researcher scheme is more advantageous for you than the normal taxation, is a good question. Due to this scheme, there is no deductions at all, e.g. you husband cannot deduct transport expenses, and what about the unused personal deduction of yours? I suggest that you ask SKAT or the employer about this.

I could imagine that this scheme is more advantageous for a person who earns much more.

http://skat.dk/skat.aspx?oid=2244303
http://icitizen.dk/

Housings in the Copenhagen area are expensive and difficult to find. Expect to pay at least 9,000 kroner plus utilities. Perhaps 12,000 kroner. Household 4-5,000 kroner. Your husband must also be prepared for some commuting (8 zones 1,260 kroner per month). Child allowance (0 - 2 years) is 4,500 kroner per quarter.

/Nellie

Hi Nelly

Thank you so much for your prompt reply. You were so much helpful. The job offered to my husband is Assistant Professor in academia. The human resources told us that the money that he will earn it will be 36,000 kroner plus 6,000  that they pay for the pension scheme, what makes 42,000 kroner per month. Due to his position we can benefit from the 31.92 special tax, that I assume it will be deducted from the 36,000 kroner. Which leaves us with around 24.500 to live monthly. Since the quality of life is pretty high specially in Copenhagen and I don't know how long will it take to find a job, I wanted to know if that money was enough to have a confortable live.

Thanks
Tania

Sorry Nelly, I meant to say that my husband will pay from his income 6000 kroner for the pension scheme (1/3) and the company will pay the rest.

I send you a pm

Thanks Nelly. I just realized that I am so confuse. I assumed wrongly that 6000 was 1/3 of the pension paid by my husband. Now I get that 6000 kroner are the 15% and includes the company payment...
Different scheme.
Sorry about that.

Thanks
Tania

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