Expertise
Investments abroad
For investors using a foreign broker or holding securities in an account outside Denmark. We cover what you must report yourself and how different securities are taxed.
Foreign investments may need to be reported separately. Correct classification and timely reporting are essential.
We calculate gains, losses and annual taxable returns, monitor deadlines and help recover foreign dividend withholding tax.
How we can help
- Classification of foreign securities
- Timely purchase reporting
- Gains, losses and mark-to-market taxation
- Reclaiming dividend withholding tax
- Previously unreported portfolios
What must you report yourself about a foreign account?
Danish banks report automatically to Skattestyrelsen (the Danish Tax Agency), but a foreign broker usually does not. You must therefore report holdings, interest, dividends, and gains and losses on shares, investment funds, ETFs and bonds yourself. The deadline is 1 July in the year after the income year.
You report the figures in TastSelv, the online self-service system, by correcting your annual assessment or tax return. You are responsible for calculating the amounts under Danish rules, even when your broker's annual statement shows something else.
Why can relief for a loss be lost for good?
You can only deduct losses on listed shares and investment fund units if the Danish Tax Agency has received information about the purchase. For purchases in a foreign account, you must report the purchase yourself by 1 July in the year after the year of purchase, unless your broker reports it for you by the Danish deadline of 20 January. If the deadline is missed, the relief cannot be restored.
Losses on listed shares can only be offset against gains and dividends from the same type of shares. Losses must be reported in the year they arise to be carried forward.
When are foreign funds and ETFs taxed on an annual basis?
Many foreign funds and ETFs are investment companies for Danish tax purposes. They are taxed on an annual mark-to-market basis, so you pay tax on the year's increase in value even if you have not sold. If the fund is on the Danish Tax Agency's list of equity-based investment companies, the return is taxed as share income; otherwise, it is taxed as capital income.
The list is updated regularly, and a fund's status can change from year to year. Check the list for every income year you hold the fund, not just the year you bought it.
How do you reclaim foreign dividend tax?
Foreign dividends are share income in Denmark, and you can get a reduction for the dividend tax withheld by the source country. Under many treaties, however, the source country may tax ordinary shareholders at no more than 15% of the dividend, and Denmark gives no reduction for more than the source country is entitled to.
If more than the treaty rate has been withheld, the excess must be reclaimed from the authorities in the source country. Procedures, forms and deadlines vary from country to country, so the claim should be made in good time.
Frequently asked questions
Do I have to report shares in a foreign account myself?
Yes. Foreign brokers usually do not report to the Danish Tax Agency, so you must report holdings, dividends, gains and losses yourself. The deadline is 1 July in the year after the income year.
What happens if I did not report my purchases on time?
You lose the right to deduct losses on those listed shares and investment fund units. The purchase must be reported by 1 July in the year after the year of purchase, unless your broker has reported it. Gains are still taxable.
How is an ETF that is not on the Danish list taxed?
A foreign ETF that is an investment company is taxed on an annual mark-to-market basis whether or not it is on the list. If it is not on the list of equity-based investment companies, the return is taxed as capital income instead of share income. That usually means a different tax rate and different rules for losses.
Can I get foreign dividend tax back?
Often, yes. If the source country withheld more than the treaty allows, you must reclaim the difference in that country. Denmark only gives a reduction for the tax the source country is entitled to under the treaty.
What should I do about an account I have never reported?
Have the gains, dividends and annual taxation calculated for all years that can still be reopened, and report the account going forward. The ordinary deadline for reopening is 1 May in the fourth year after the income year. Losses on purchases that were not reported in time cannot be deducted.
What does this mean for you?
This page is general. Your own situation may be different, so talk to us before you act on it.