Form a Danish A/S (DKK 400,000 paid in capital) or ApS (DKK 40,000) with full EU passport. Corporate income tax is a flat 22%, VAT is 25% standard, and Denmark's participation exemption removes tax on qualifying dividends and capital gains, making it one of the EU's most credible holding regimes.
When Denmark is the right call, and when it is not.
Denmark's participation exemption removes corporate tax on dividends and capital gains from qualifying subsidiaries (Group Shares 10%+ for one year, Subsidiary Shares meeting category tests, or Tax Exempt Portfolio Shares for listed under 10%). Combined with 80+ DTAs, EU Parent Subsidiary Directive, and no Danish controlled foreign company tax on most EU subs, A/S and ApS are credible alternatives to Dutch BV and Luxembourg SOPARFI.
Denmark anchors one of Europe's largest life sciences clusters (Novo Nordisk, Lundbeck, Genmab, Bavarian Nordic, Zealand Pharma). The Danish R&D super deduction allows 108% of qualifying R&D costs to be deducted in 2024 and 2025 (110% from 2026), Innovation Fund Denmark covers seed grants, and Medicon Valley spans Copenhagen to Lund with deep CRO and CMO infrastructure.
Denmark is the world's leading offshore wind base (Ørsted, Vestas, Siemens Gamesa, Cadeler, MHI Vestas). Energistyrelsen runs structured offshore tender rounds, EIFO export credit finances internationally, and grid build out for hydrogen and PtX is on a 2030 acceleration plan with state co investment. PtX tax allowances and grants stack with the R&D super deduction.
A/S requires DKK 400,000 paid in capital; ApS lowers this to DKK 40,000. There is no Danish equivalent of the EUR 1 vehicle. The IVS (entrepreneurial company) was abolished in 2021, with existing IVS required to convert to ApS. If you want a minimal capital vehicle inside the EU, look at Estonia, Ireland, or Dutch BV.
Erhvervsstyrelsen filings are bilingual but core accounting, tax, and bank documentation work better in Danish. Annual reports must be filed at Erhvervsstyrelsen in Danish or English. A Danish authorised auditor or accountant is required for accounting class B and above. For lighter Nordic admin with fully digital flows, Estonia is materially lighter.
Working data for Denmark. Cite check each figure before use.
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Each rate, threshold, and deadline below is cited from an authoritative source.
Information is provided for general guidance and reflects tax year 2025 unless noted. Specific situations require advice from a local practitioner. Always confirm against the cited tax authority and registrar before relying on a figure.