Peak
๐Ÿ‡ฉ๐Ÿ‡ฐ
Employer of Record
Denmark

Your complete solution for seamless Danish market entry

Hire across Denmark without setting up a local entity. Peak's people-first approach lets you employ, pay and support talent while we handle income tax, eIndkomst reporting and Denmark's collective-agreement framework.

22%
Corporate tax
Flat rate for resident companies.
25%
VAT
Single standard rate, one of the highest in the EU.
Low
Employer social cost
No percentage payroll tax - mostly small fixed schemes.
2-4 wks
Time to first hire
From decision to your first Danish hire with Peak.
Why Denmark

Flexicurity, high productivity and trust

Denmark's flexicurity model pairs flexible hiring with strong worker security, backed by a highly productive, digital and English-proficient workforce - and you can hire here without a local entity.

Kit holding a globe
  • Flexicurity model

    Flexible hiring and dismissal balanced with strong social security.

  • Low employer social cost

    No percentage-based payroll tax - among the lightest in Europe.

  • Productive workforce

    High productivity, strong English and a digital-first culture.

  • Innovation hub

    A leader in green energy, life sciences and technology.

  • Nordic gateway

    A natural base for the wider Scandinavian region.

  • People-first guidance

    We help you weigh whether Denmark fits your values, not just the opportunity.

The essentials

Denmark at a glance

CapitalCopenhagen
Income taxProgressive (cap ~52-56%)
CurrencyDanish krone (DKK)
Employer social costLow (fixed schemes)
Official languageDanish
Corporate tax22%
Minimum wageNone (set by agreement)
Time to first hire2-4 weeks
Entity vs EOR

Set up an entity, or hire through Peak?

For most teams entering Denmark, an EOR is faster, cheaper and lower-risk than establishing a local entity.

Denmark entity setupPeak EOR
CostApS from DKK 20,000 share capital, plus ongoing accounting and complianceNo setup costs, transparent monthly pricing
Time to hireRegistration can be quick, but bank onboarding often adds weeks2-4 weeks, full compliance included
Ideal for10+ employees, permanent commitment, local board needsTesting markets, 1-20 employees, flexibility needed
DKK 0

Your upfront entity cost with Peak. Skip the DKK 20,000 ApS share capital, company registration and the ongoing compliance overhead - with the freedom to scale up or down without complications.

Peak's honest advice

We'll tell you when setting up your own entity makes more sense. Our goal is your success, not our commission.

Staying compliant

Employment law and payroll, handled

Denmark has no statutory minimum wage - pay and many terms are set by collective agreement under the Danish model. We keep every contract, deduction and eIndkomst filing correct.

Key protections we cover

  • Salaried staff (Funktionรฆrloven): notice from 1 to 6 months by tenure.
  • Paid leave: 25 days; salaried employees receive paid annual leave plus a 1% holiday supplement (12.5% feriepenge applies to hourly-paid staff).
  • Pay floors: set by sector collective agreements, not statute.
  • Probation: maximum 3 months, with 14 days' notice.

Mistakes we prevent

  • Misclassifying contractors who should be employees.
  • Inadequate probation-period documentation.
  • Missing mandatory registrations and filings.
  • Incorrect holiday-pay and leave calculations.

Denmark payroll & tax, at a glance

ComponentDetail
Labour-market contribution (AM-bidrag)8% of gross, before other income tax
Income taxState and municipal, with a top tax ceiling
Employer social costLow - ATP and statutory schemes as fixed amounts
FilingMonthly reporting to eIndkomst (E-income)
Real Denmark experts, on our team

Actual local employment specialists - not outsourced advice. TeamHub gives you compliant templates and instant payslips, with human help whenever you need it.

Expertise & values

Real local know-how, business for good

Deep knowledge of the Danish flexicurity model and collective-agreement framework, a real in-house team and a business-for-good ethos.

01

Deep local experience

Local specialists who know the market and the rules on the ground.

02

Real legal team

Employment lawyers in-house, not outsourced advice.

03

Compliant payroll

Certified specialists, ready for multi-currency operations.

04

Transparent pricing

No hidden fees, no billable hours, no surprises.

05

Business for good

B1G1 partner, B Corp certified, Planet Mark certified.

06

People-first by design

TeamHub keeps you informed; humans handle the hard bits.

Long-term partnership

Beyond compliance - a partner as you grow

Hiring your first person in Denmark is just the start. We support the whole journey.

Employee relations

Disputes, performance issues and cultural integration, handled with care.

Continuous compliance

Stay ahead of law changes, regulatory updates and best practice.

Growth support

Scale your team, enter new markets and get strategic advice.

Crisis management

Redundancy, restructuring and legal complications, expertly navigated.

Ready to expand to Denmark?

Denmark offers a productive workforce and unusually low employer social costs, but there is no statutory minimum wage and much is set by collective agreement. Getting contracts and reporting right from the start matters.

Next steps

  • Free consultation: discuss your Denmark expansion goals.
  • Custom assessment: receive tailored strategy advice.
  • Rapid setup: start hiring within weeks.
  • Ongoing partnership: scale with confidence.

Why choose Peak

  • People-first approach with business-for-good values.
  • Real local experts, not outsourced call centres.
  • TeamHub platform: simple, intuitive, foolproof.
  • Truly transparent pricing that makes sense.