Moving to Greenland for work
Greenland. A new country, a new language, a new culture, as well as new administrative rules to be observed.
Moving to a new country may be demanding, but here you can read about tax matters and find links to other authorities that advise on related matters.
You find a basic introduction to the Greenlandic tax system for new recidents here.
Tax Agency Greenland
Intaleeqqap Aqqutaa 1
Postbox 1605
3900 Nuuk
Phone: 34 65 10
E-mail: tax@nanoq.gl
Rules regarding work permits in Greenland vary according to the applicant’s country of origin. The Danish Agency for International Recruitment and Integration reviews and administers work permit applications. More information about the rules and regulations concerning residence and work permits are available at the New to Denmark website:
https://www.nyidanmark.dk/en-GB/Applying/The%20Faroe%20Islands%20and%20Greenland
Fast Track Greenland Agreement
If you apply after the Fast Track Greenland Agreement, you can quickly and easily receive a residence and work permit in Greenland. However, it requires that you are employed by a pre-approved company in Greenland. Application forms can be found on the website newtodenmark.dk. Find relevant application forms by searching for “Fast Track Greenland”.
Nordic citizens
If you are a citizen of Finland, Sweden, Norway, Denmark, Iceland or Faroe Islands, you are free to work in Greenland. You do not need to apply for a work permit.
EU-citizens
If you are a non-Nordic EU citizen, you must apply for a work permit in order to work in the Greenland. Application forms can be found on the website newtodenmark.dk. Find relevant application forms by searching for “Greenland”.
Citizens from other countries
If you are a citizen of a country outside the European Union, you must also apply for a work permit in order to work in Greenland. Application forms can be found on the website newtodenmark.dk. Find relevant application forms by searching for “Greenland”.In Greenland, you may be fully or partially taxable, depending on how long you stay in the country.
Fully taxable
If you are resident in Greenland or stay for more than 6 months, you are fully taxable. This means that you must declare and pay tax on all your income - whether it is earned in Greenland or abroad - effective from the first day there.
Once you are fully taxable, you will receive an annual statement from the Tax Agency each year calculating any residual or excess tax.
Limited tax liability
If you stay in Greenland for less than 6 months, you have limited tax liability. This means that you only pay tax on income earned in Greenland. When you are a limited taxpayer, you will not receive a final statement with a calculation of residual or excess tax.
The tax card (skattekort) shows your tax rate and your deduction, which your employer must use to deduct tax. You can get your first tax card at your local tax office.
It will then be automatically sent to your address in December. If you lose your tax card, you must contact the Tax Agency to get a new one.
|
Tax municipality |
Municipality No. |
Municipality tax rate |
National Tax |
Joint municipal tax: |
Total Tax rate % |
|
Kommune Kujalleq |
31 |
27% |
10% |
6% |
43% |
|
Kommuneqarfik Sermersooq |
32 |
26% |
10% |
6% |
42% |
|
Qeqqata Kommunia |
33 |
26% |
10% |
6% |
42% |
|
Tax Agency |
35 |
- |
36% |
- |
36% |
|
Qeqertarlik Kommunea |
36 |
28% |
10% |
6% |
44% |
|
Avannaata Kommunea |
37 |
28% |
10% |
6% |
44% |
Tax Agency - Outside Municipal Jurisdiction
The Tax Agency acts as tax municipoality for oprerations outside municpal authority.
Employees in the mineral resources sector and on infrastructure projects without tax liability in Greenland for the past six months are subject to a gross tax of 35%. Generally, this is a proportional tax without deductions.
Companies and Dividends
The corporate tax rate is 25%.
Dividends are taxed at the same rate as the total tax rate in the taxpayer's municipality. However, for projects in the mineral resources and infrastructure sectors outside towns, the rate is 36%.
Employer-Paid Tax
Employers are required to pay AMA (Labour Market Contribution). In 2024, the rate was 1.1% of gross salary. From 2025, the AMA rate for private employers will increase to 2.1% of gross salary.
Gross tax: 35 %
The Gross tax scheme applies to any project, construction, installation or assembly work that takes place outside the four main municipalities.
The Gross tax scheme also applies if you perform tasks related to prospecting, exploration or exploitation of mineral resources in accordance with sections § 72a and § 72 b.
As an employer, you must be registered in CVR as soon as you commence operations and are responsible for reporting and withholding income tax immediately.
You can find a guide to tax filing and the tax filing form here.
Payments for gross tax can be made to Bank of Greenland using this Swift address / BIC: GRENGLGX
When paying from outside Greenland, please use this IBAN number: GL0964710001002616.
When paying the gross tax, please remember to apply the CVR/TIN number as reference.
All individuals up to the Greenlandic pension age, 67, and fully tax liable in Greenland are required to save up for a pension through a Greenlandic or Danish pension scheme. Pension payments are required by law, and there is a statutory minimum percentage of your wages that you must save. In 2022 this is 7%, and will increase by 1% per year until 2024, when you will be required to save at least 10% of your salary.
If you have a Danish pension scheme and get a job in Greenland, it could be an advantage for you to ask your pension company about the so-called §53A scheme. In this way you can avoid being double taxed on the pension you earn when working in Greenland. Contact your pension company for more information about the scheme.
Foreign pensions schemes
If you expect to stay in Greenland for less than two income years, the Tax Agency can give you an exemption to have a pension scheme from Norway, the Faroe Islands, Iceland or EU countries.
To qualify for an exemption, you must expect to be fully tax liable to Greenland, and the employment contract must directly state that the employment is for a fixed period of time. If you meet the conditions, you may be granted an exemption from set up a Greenlandic or Danish pension scheme to up two income years.
The application must be sent no later than 3 months after you have moved to Greenland. Send an e-mail to tax@nanoq.gl to apply for be granted an exemption from set up a Greenlandic or Danish pension scheme.
You are entitled to 5 weeks' holiday - even if you have not earned 5 weeks' holiday with holiday pay or salary. However, you will only receive holiday pay or salary for the weeks you have earned. You have to pay for the rest of your holiday yourself.
To find out more about the arrangements at your workplace, contact your manager or your union representative.
Once you are registered as resident in Greenland, you will be entitled to the same healthcare services as the nation’s citizens. This includes free healthcare and medicines prescribed by doctors.
In order to be eligible to vote in elections to the parliaments of Greenland and Denmark, you must:
- Be at least 18 years of age
- Be a Danish citizen
- Be permanently resident in Greenland for at least six months before the election
You may be eligible to vote in municipal elections even if you do not have Danish citizenship if you have been permanently resident in Greenland, the Faroe Islands or Denmark for at least three years prior to the election.
You can find information about the rules and regulations concerning Greenland residence and work permits on the New to Denmark website here.