Leaving Denmark: Tax on Your Shares When You Emigrate

If you live in Denmark and own shares, leaving the country doesn’t mean you escape Danish tax. Under SKAT rules, emigration can trigger an immediate tax event on your portfolio — unless you meet the conditions for deferral. Here’s how it works and what you need to do.

The DKK 100,000 Threshold

When you leave Denmark, SKAT looks at the total market value of all your shares on the date of emigration. If that value is DKK 100,000 or more, your gains and losses are treated as realised on the day you depart.

This means SKAT calculates what you would have owed (or could have claimed back) if you had sold every share in your portfolio on that date. If the net result is a gain, you owe Danish capital gains tax on it at the standard rates.

Key point: This threshold applies to the combined market value of all shares — listed shares, shares in private limited companies, investment fund units, and other securities under the Capital Gains Tax Act. Even shares you can sell tax-free must be counted when determining whether you cross the DKK 100,000 threshold.

Deferring the Tax

You don’t have to pay the emigration tax immediately. Denmark allows you to defer the payment, meaning you report gains and losses each year as if you were still living in Denmark, and only pay tax when you actually sell or when other triggering events occur.

To defer, you must:

1. Report your portfolio via ‘Calculate shares’ in E-tax (under Change tax assessment notice/tax return), or fill in form 04.065 EN.
2. Meet the deadline: 1 July in the year after you leave Denmark.

If you miss this deadline, you lose the right to defer and the full emigration tax becomes immediately payable. You can apply to SKAT for relief if you have a valid reason for the late filing.

Portfolio Overview: What You Must Report

At the time of emigration, you must report all shares and investment fund units you own — even if you plan to sell some tax-free or if you’re sitting on a loss. This includes:

• Listed shares on Danish or foreign exchanges
• Shares in private limited companies (ApS, A/S)
• Investment fund units
• Shares with a negative acquisition cost
• Shares you previously deferred on from an earlier emigration

The portfolio overview is filed in E-tax under ‘Calculate shares’. SKAT uses this to establish your baseline for future gain/loss calculations while you’re abroad.

Annual Reporting While Abroad

As long as you have a postponed tax payments balance (the deferred tax amount), you must report your securities to SKAT each year by 1 July. This reporting includes:

• Sales of shares (using the original acquisition price from your emigration date)
• Dividends received
• Distributions and other transactions

When you sell a share that was part of your emigration portfolio, you calculate the gain or loss by comparing the sale price against the acquisition cost you declared when you left. Losses are limited to the difference between the emigration-date value and the sale price.

Dividend Payments After Leaving

Receiving dividends while abroad triggers two obligations:

1. Instalment on deferred balance: Each dividend payment requires you to pay an instalment on your postponed tax payments balance. This applies to dividends on both Danish and non-Danish shares in your portfolio.

2. Danish tax on Danish dividends: Dividends from Danish companies remain subject to Danish tax regardless of your residency. If Denmark has a double taxation agreement with your new country, the tax may be reduced.

Borrowing from a Company You Own

While a deferred balance exists, borrowing money from a company in which you hold shares triggers a payment equal to the loan amount. This also applies to loans from a company owned by a company you have shares in (in which case the payment is proportional to the ownership interest).

Exception: If the lending company is a bank and you own less than 5% of the share capital, no instalment is required.

Once the payment is made, your postponed tax payments balance is reduced accordingly.

Collateral Requirements

Whether you need to provide collateral for the deferred tax depends on where you move:

No interest is charged on the deferred tax payment regardless of your destination.

Moving Back to Denmark

If you return to Denmark, the market value of your shares at the time of return becomes your new acquisition cost — but this is reduced if you still have a postponed tax payments balance.

In some cases, if you had unused losses when you left (losses you couldn’t deduct at the time), SKAT may increase the market value at return so you can use those losses after all. This only applies to shares you owned both when leaving and when returning.

Penalties for Late Reporting

Failing to report your securities on time has serious consequences:

• Your postponed tax payments balance becomes immediately payable as outstanding tax.
• The standard payment deadlines apply (1 September in the year following the income year, final due date 20 September).
• You can apply to SKAT for relief if you have a reasonable excuse for missing the deadline.

Worked Example: DKK 500,000 in Shares

Situation: Anna owns a diversified portfolio worth DKK 500,000 when she leaves Denmark. Her total acquisition cost is DKK 300,000, so her unrealised gain is DKK 200,000.

Option A: Pay Immediately

Anna’s DKK 200,000 net gain is taxed at the Danish capital gains tax rate (27% on the first DKK 61,000, 42% on the remainder for 2026).

Anna pays DKK 74,850 before or by 1 July following her departure.

Option B: Defer

Anna reports her portfolio via E-tax by 1 July. She pays nothing upfront. Instead:

• Each year, she reports any sales, dividends, or portfolio changes.
• When she sells a share, she pays tax on the gain (sale price minus the original acquisition cost from her emigration date).
• Dividends trigger instalments on her deferred balance.
• If she never sells and receives no dividends, the deferred balance stays untouched until a triggering event occurs.

Benefit: Anna keeps her capital invested and working. She only pays tax as gains are actually realised.

Risk: If she misses a reporting deadline, the entire deferred balance becomes due immediately.

Reference

For full details, see the official SKAT guidance: Tax on shares if you leave Denmark