Denmark

Denmark has a relatively high top marginal personal income tax rate of 60.5% alongside a corporate income tax rate of 22%. The higher rates are typical of countries with extensive public services and social safety nets. Capital gains face a 42% tax rate, which is on the higher end globally. Long-term holding strategies and tax treaty benefits may help mitigate the impact. Denmark taxes residents on their worldwide income, including foreign-sourced earnings. This means income from overseas employment, investments, and business activities is subject to domestic tax rates, though double taxation treaties may provide relief. Denmark permits dual citizenship, which provides flexibility for tax planning through establishing residency in a second jurisdiction without forfeiting existing citizenship rights.