Danish Dividend Tax (Udbytteskat) 2025
Dividends received from Danish and foreign companies are taxed as stock income (aktieindkomst) in Denmark. The tax rates are progressive: 27% on dividend income up to the progression threshold and 42% on amounts above it. In 2025, the threshold is DKK 61,300 for singles and DKK 122,600 for married couples. In 2026, the threshold rises to DKK 79,400 for singles and DKK 158,800 for couples. Calculate exactly what you receive after tax on your dividends with our calculator.
Withholding Tax on Dividends
Danish companies automatically withhold 27% tax on dividend payments. If your total stock income stays below the progression threshold, no additional tax is due. If it exceeds the threshold, you will owe the difference between 42% and the 27% already withheld on the excess amount. This is settled through your annual tax assessment (arsopgorelse).
Foreign Dividends
Dividends from foreign companies may be subject to withholding tax in the source country. Denmark has double taxation agreements with many countries that reduce or eliminate double taxation. Foreign withholding tax can typically be credited against your Danish tax liability, though you may need to apply for a refund of excess withholding tax in the source country if their rate exceeds the treaty rate.
When Are Dividends Tax-Free?
For individuals, dividends are never tax-free โ either 27% or 42% always applies. However, dividends are tax-free for holding companies when received from a company where the holding company owns at least 10% of the shares. Stock income up to the progression threshold is taxed at the lower 27% rate, making it advantageous to plan dividend distributions strategically.