Tax on non-Danish pensions

According to Danish legislation, a state or social pension can be a mandatory or optional scheme that corresponds to the Danish state pension or Labour Market Supplementary Pension (ATP), etc. This means pension schemes providing social security in old age.

The double taxation agreements signed by Denmark state whether you must pay tax in Denmark or in the country making the pension payment.

Personal pension schemes include occupational pension schemes or personal pension schemes with an insurance company, pension fund or bank.

In this case, taxation depends on several factors, including whether the pension contribution was tax deductible as part of the salary. Generally, you pay tax in Denmark, but there are a number of exceptions stated in the double taxation agreements signed by Denmark.

Danish double taxation agreements and international agreements (our legal guide - only available in Danish)

Public pensions are contributions to pension schemes related to employment in civil service or similar. Most often, such a pension payments are taxed in the country from which the income comes, yet there are exceptions. 

In some cases, you also have to pay tax on the annual return on private pension or insurance schemes that you have taken out with a non-Danish insurance company or pension fund.

Positive returns are taxed as capital income (not as pension savings tax, PAL). Negative returns can't be deducted from other income (including positive returns on other pension schemes), but can be offset against positive returns in the following year. Please use form 04.055 to do so.