Denmark Fiscal & Treaty Framework
1. Bilateral Tax Accord & Jurisdictional Allocation (Denmark)
Relocating from Denmark to Spain activates the provisions of the Overenskomst mellem Danmark og Spanien til undgåelse af dobbeltbeskatning (1980). Under Article 15 of this bilateral accord, employment income is strictly allocated based on physical presence. If you move your tax residency from Denmark without electing the 24% Beckham Law regime via Form 149, the Spanish Tax Authority (AEAT) will subject your worldwide earnings to progressive Spanish income tax (IRPF) reaching up to 47% (and up to 54% in autonomous regions like Valencia).
By contrast, electing the Special Regime for Inbound Workers (Article 93 LIRPF) caps your Spanish employment tax at a flat 24% for active labor income up to €600,000 per year. Furthermore, foreign-sourced passive income (such as dividends, interest, or rental yield originating in Denmark) remains 100% EXEMPT from Spanish income tax.
2. Taxation of Danish Ligningsloven § 7 P & § 28 Stock Option Schemes and RSUs.
A critical area of divergence for executives from Denmark involves Danish Ligningsloven § 7 P & § 28 Stock Option Schemes and RSUs.. Under DGT Binding Ruling V0813-23, unvested equity grants are time-sliced across the vesting grant period: only the fraction of workdays physically performed on Spanish soil is added to your Spanish 24% taxable base.
Regarding corporate distributions, 15% Danish Udbytteskat (dividend tax) withholding under DTA Article 10. This provides significant cash flow protection compared to standard non-resident rates.
3. Statutory Departure & Compliance Requirements
Prior to relocating from Denmark, you must address local departure formalities: Skatteforvaltningen (Skat) Exit Tax (Havnelov / Aktieavancebeskatningsloven § 38) on stock portfolios. De-register from Danish Civil Registration System (CPR) prior to departure. Danish ATP & Private Pension capital payouts evaluate under Denmark-Spain DTA Article 18.