New Government Strategy Priorities Improvement of Business Framework Conditions and International Talent Acquisition
Among its key focuses, the strategy aims to make it easier for Danish businesses to attract top talent from abroad, encourage investment, and reduce entry barriers for entrepreneurs and foreign investors. Key initiatives of the strategy include:
Reduced salary requirements: Easing salary requirements in the gross tax scheme means that companies that have existed for less than five years can now gain access to foreign talent at a lower salary threshold (60,000 DKK compared to the current 75,100 DKK). Those who are eligible and registered under the scheme pay a tax of 32.84% (27% + labour market contribution) on their salary income for a period of up to 7 years. This initiative expands Danish companies’ opportunities to attract and retain top talent via an attractive tax scheme, which is essential for driving growth and innovation, by offering favourable tax conditions.
Expanded employee stock options: Expanding the employee stock option scheme for new, smaller companies by removing the limit on the portion of salary that can be offered as tax-free employee stock options and replacing it with a base salary requirement. Additionally, the government will explore the possibility of granting unlisted companies the right to use standardised valuations for employee stock options when applying rules for tax-free employee stock options.
Reducing Capital Requirements: Reducing the capital deposit requirements for establishing a private limited company by half to DKK 20,000, bringing it in line with the other Scandinavian countries. This initiative lowers barriers to entry for entrepreneurs that lacks start-up capital.
Raised tax threshold: Raising the progression threshold for taxing individuals’ share income to encourage investment.
With this, steps have been taken in the right direction to ensure that more start-ups and entrepreneurs stay in Denmark, even as they grow. Invest in Denmark supports these new initiatives, and collaborates with the Export and Investment Fund of Denmark (EIFO), municipalities, clusters, and universities among others to attract, develop, and retain foreign investments in Denmark focusing on Denmark’s stronghold sectors. The new strategy will support Denmark’s thriving business ecosystem, making it even more welcoming to innovative businesses and top-tier talent.