Insight
Insight
With 551 green patents in 2021, Denmark is cementing a solid first place on green patents. This corresponds to 93 green patents per million inhabitants, well above number two and three – Switzerland (51 patents) and Sweden (37 patents).
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Patenting of technology plays a decisive role for companies in Denmark when goods and services are to be exported. This applies not least to technologies related to the green transition, where Danish companies have a clear leading position measured on green patents. Unsurprisingly, wind energy is a Danish stronghold and plays a decisive role in the total number of patent applications.
A central part of Denmark’s favourable tax climate is a corporate tax rate of 22%. But to make Denmark even more attractive, the Danish government has introduced a permanent R&D deduction of 130 percent to promote commercial research and to accelerate green investments. In addition, if R&D costs result in tax losses, companies are entitled to a cash reimbursement of 22% of losses related to those costs – up to a maximum tax value of DKK 25 million. Also, companies are entitled to a full deduction of patents and know-how in the year of an acquisition.
We provide free-of-charge confidential and tailor-made solutions for foreign companies looking to set up a new business in Denmark or expand an existing one. Please contact one of our experts here:
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