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Low tax for highly educated foreigners to be extended: ministry

Danish Minister for Industry, Business and Financial Affairs Brian Mikkelsen intends to extend the coverage period of the low tax rate for highly educated foreigners, in a move welcomed by the Confederation of Danish Industry.

Published: 28 August 2017 10:07 CEST
Low tax for highly educated foreigners to be extended: ministry
Minister for Industry, Business and Financial Affairs Brian Mikkelsen: Photo: Uffe Weng/Scanpix

The Danish government is expected to present a comprehensive business plan that will make life easier for companies in Denmark within the next few weeks.

Minister for Industry, Business and Financial Affairs Brian Mikkelsen has already announced in Danish newspaper Berlingske Tidende that he will expand the so-called ‘research tax scheme’, writes dibusiness.dk.

Today, the scheme allows highly paid foreigners to work for five years in Denmark under a special tax rate of 26 per cent plus labour market contributions. 

According to the proposal from Brian Mikkelsen, the scheme would be expanded so that foreigners would be able to spend seven years under the low tax rate, which will meanwhile be raised by one per cent, making the expansion cost neutral for the government. 

The Confederation of Danish Industry (Dansk industri, DI) supports the initiative.

“It is a very sensible proposal. Firstly, because companies have a great need for highly skilled labour, and this proposal will make it easier to attract and retain employees. Secondly, because an extension of the scheme will increase the chance of foreigners staying in Denmark even once they are no longer covered by the scheme,” said Deputy Director Kent Damsgaard of the Confederation of Danish Industry. 

Many highly skilled foreigners currently leave Denmark once they have to pay full taxes. 

According to a study from DI and DEA from 2016, the average period of residency is just 3.5 years for a foreign citizen who has come to Denmark under the research tax scheme.

READ ALSO: Foreigners fill more than half of all new jobs in Denmark

That is one of the reasons why an extension of the scheme was included among the recommendations that DI presented to the government earlier this year. 

“Without the scheme, many would not come at all. And this type of employee is absolutely crucial in order for large Danish companies to be at the forefront of global competition. They thereby create jobs for many others and that value far exceeds the tax revenue that would come from taxing them on equal footing with Danes,” Damsgaard said.

The director added that he was looking forward to the ongoing process, in which DI hopes that several more of its proposals for adjustments can be met.

“For example, as a foreigner, you are excluded from the scheme if you have earned even the slightest amount of taxable income in Denmark within the past 10 years. But it is precisely people like this, who have already experienced Denmark, who are most likely to try out a permanent job here. Moreover, it does not make sense that the scheme prevents foreign entrepreneurs and owner-managers from moving their company to Denmark and taking advantage of the scheme. We need those people as well,” he said. 

READ ALSO: Jobs vacant in Denmark with unemployment low: report

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WORKING IN DENMARK

Ten ways to improve your chances of finding a job in Denmark

Job searching in Denmark can be a daunting and lengthy process with many hurdles to overcome. The Local spoke to Kay Xander Mellish, author of 'How to Work in Denmark', for her tips on submitting a successful CV and application.

Published: 12 January 2023 09:44 CET
Updated: 15 January 2023 09:04 CET
Ten ways to improve your chances of finding a job in Denmark

CVs in Denmark often have certain aspects of layout, presentation and content in common. By writing a CV that sticks to some of these recognisable customs, you may improve your chances of catching the eye of a potential employer.

1. Length

“Keep it to one excellent page, or two if you’re more senior. I’d say if you’re aged 30 and under, one page will be enough. Only add the jobs that are relevant. Employers don’t want to hear about that restaurant server or babysitting job if it’s not relevant to the role,” Mellish said.

2. Format

At the top of your CV, a paragraph describing your experience, skills, education and character is a common way to lead into a CV. This text can be adapted depending on the job you’re applying for and how you want to present your skills.

“Add three adjectives about yourself that you can support with an example, rather than ten adjectives with no story. For example, say you are innovative for this reason. People don’t like hot air in Denmark,” Mellish said.

Aside from the profile text, chronological lists of qualifications, relevant employment history and other relevant experience should be kept brief enough to fit the one to two pages.

3. Show your personal side and a photo

It is expected that applicants include a section about their hobbies, even family situation on their CV in Denmark, as well as a photo, to give a sense of who they are as a person.

“Danish employers are interested in you as a human, more so than employers in other countries so include information about yourself, including your age and your hobbies.

“Choose a good quality photo that is not too serious but shows you looking friendly and approachable,” Mellish said.

4. Story telling

“Think in terms of story telling”, Mellish advised. “Pure letters and numbers don’t mean a lot to employers in Denmark, they need to know what projects you’ve done, what role you played and what kind of person you are through your CV.

“So rather than writing ‘I have these grades’, it’s better to say ‘I worked on this project, it took this long, I achieved this'”, Mellish said.

5. Hit the ground running

Mellish called this “plug and play”, where you show you will slot right into the company and get going with the role.

“When employers are reading your CV, they want to know what you can do on day one of the job. Sell your ability to solve someone’s problem. You need to give the impression you can add value straight away.

“In Denmark the average length of time in a job is two and a half years, because you can take your pension when you move, so employers don’t want someone they need to spend time training,” Mellish told The Local.

READ ALSO: Five tips for writing an effective Danish CV

6. Teamwork

“Group work is very important in Denmark, more than individual achievements. So talk about your teamwork and how you worked with a group to produce a good business result. It shouldn’t be ‘me, me, me’ – that’s a turn off,” Mellish said.

7. LinkedIn

“People in Denmark love LinkedIn so you need a fabulous LinkedIn profile with a good picture. Before anyone calls you for an interview they’ll have looked at your LinkedIn profile.

“In your profile, include the storytelling, explaining the projects you’ve worked on. If your job involves a uniform, I recommend wearing it in your LinkedIn photo so people get that impression of you right away. Your background photo should also be work-related, not rainbows or puppies. Use it to tell the story of who you are,” Mellish advised.

8. Unsolicited application

This is when you approach a company or department you would like to work for, without a job being advertised. The Danish term for it is uopfordret ansøgning. 

“Many people make contact on LinkedIn and ask to meet for a coffee, where they chat and rather than pitch for a job, they ask if the person knows anyone looking for someone like them. Danish employers welcome this and many people are hired this way,” Mellish said.

Another way to network is to join a union, Mellish advised. They often have career events but can also help read your contract when you get a job offer, or help with any problems in the workplace. 

9. Ring the recruiter

The phone number of the hiring manager will often be in the job advert. Mellish advised finding a quiet place to ring them from and spending ten to fifteen minutes asking some good business questions.

“This also helps you work out if you might want to work for this person,” Mellish said.

“Send your CV within 24 hours of the phone call and mention you spoke to them in your application,” she added.

10. Patience

“On average it can take six months to find a job in Denmark. If it’s under this, you’re lucky. If it takes a year, it’s not you, it just takes a long time because employers are looking for someone to fit into their team.

“I wrote 100 letters, I got ten responses, three interviews and one job which I had for eight years,” Mellish told The Local.

“Danish employers are not always good at getting back to you. If you don’t hear anything, just keep applying for other jobs. If you sent an application on June 1st, you could send a follow-up email on June 15th, then you’ll have to leave it and move on,” she advised. 

Kay Xander Mellish’s book ‘How to Work in Denmark’ offers both job-searching advice and tips on how to succeed in the Danish workplace.

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