Expertise
Social security abroad
For anyone working abroad or in several countries at the same time, and for employers who need social security contributions paid in the right country.
Social security and income tax follow separate rules and may point to different countries.
We clarify the applicable system, arrange documentation and review changes in working patterns that can affect coverage.
How we can help
- Applicable country of coverage
- A1 applications and renewals
- The 25% threshold for work in several countries
- Coordination with tax
- Deductions for compulsory foreign contributions
Which country's social security applies to you?
Within the EU, the EEA and Switzerland, the question is decided by Regulation 883/2004. The main rule is that you are covered by social security in the country where you work, and in only one country at a time. This applies regardless of where you pay tax.
Outside Europe, Denmark has agreements with a number of countries, but they often cover only part of social security, typically pensions. If you work in a country without an agreement, you may have to pay contributions in both countries.
When can you keep Danish social security while posted abroad?
If a Danish employer posts you abroad temporarily, you can keep Danish social security for up to 24 months. This is documented with an A1 certificate from Udbetaling Danmark (the Danish public benefits administration). Longer postings require a special agreement between Denmark and the other country and can normally last no more than three years in total.
The posting rule requires, among other things, that the employer has genuine activity in Denmark and that you are not sent to replace another posted worker. If the conditions are not met, the main rule applies, and you are covered by the work country's system from day one.
What applies when you work in several countries?
If you normally work in two or more countries, your coverage is assessed as a whole. If you do at least 25% of your work in your country of residence, you are covered there. Otherwise, you are generally covered in the country where your employer is based.
The authority in your country of residence makes the decision. If you live in Denmark, you apply to Udbetaling Danmark, and both employee and employer can apply online via borger.dk or virk.dk.
The threshold is easy to cross without noticing. One extra regular day a week working from home can be enough to move your entire social security coverage to your country of residence.
How does social security interact with your Danish tax?
The Danish arbejdsmarkedsbidrag (labour market contribution, AM-bidrag) counts as a social security contribution under EU law. If you are covered by another country's social security under the regulation or an agreement Denmark has entered into, you generally do not pay AM-bidrag, even if your salary is taxed in Denmark.
If you are fully tax liable and not resident in another country under a double tax treaty, you can deduct documented mandatory foreign social security contributions from your personal income under section 8 M of ligningsloven (the Danish Tax Assessment Act). The documentation is normally an A1 certificate or another decision from the foreign authority.
Frequently asked questions
What is an A1 certificate?
An A1 certificate documents which country's social security you are covered by when you work across borders in the EU, the EEA or Switzerland. In Denmark it is issued by Udbetaling Danmark. Without it, the work country can require contributions to be paid there.
Do I need an A1 certificate for a short business trip?
Yes, as a rule. The requirement also applies to short trips, because working in another country in principle moves your social security there. You can apply online to Udbetaling Danmark.
Can I work from home in another country and stay covered by Danish social security?
It depends on how much of your work you do in your country of residence. If it is at least 25%, the main rule is that you are covered there. If it is less, you are generally covered in the country where your employer is based.
Do I pay AM-bidrag if I am covered by social security in another country?
Generally not. If you are covered by another EU or EEA country's social security under Regulation 883/2004, or by an agreement Denmark has entered into, no AM-bidrag is due. This requires documentation, typically an A1 certificate.
Are social security and tax always in the same country?
No. Tax is decided by Danish legislation and double tax treaties, while social security is decided by the EU regulation or social security agreements. The two sets of rules use different criteria and can point to different countries for the same salary.
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.