It’s very straightforward to get started freelancing, and it’s super lucrative as well if you can get your foot inside some companies and get your name out there. Having a portfolio of previous clients always help.
To start freelancing in Denmark, you can either continue using your current setup or create a new setup in Denmark. You will need to get permission to live in the country, then get a “MitID”, and then you can online start a freelance business at Virk.
The easiest company to create as a freelancer is an individual company, also called “Enkeltmandsvirksomhed”, in Denmark. For this company type, you’re responsible for all activities, but it requires no capital to get started.
How To Register As A Freelancer In Denmark
With all the permissions, in order to live in Denmark, you need to acquire a MitID. It’s completely free, and it’s your digital signature to use any online government-related websites, whether it’s for taxes, creating your company or something third.
Before you get a MitID, you’ll need a CPR number, which is your personal identification number in the Danish system. You can find all the information you need in “New to Denmark“.
With the MitID acquired, you can now create your company at Virk. Bear in mind the website is in Danish, but you can use Google Translate to translate the entire website.
Click on “Start selvbetjening” and follow the steps. If you want to get started fast and effortlessly, then I recommend you choose sole proprietorship, or as it’s called in Danish, “Enkeltmandsvirksomhed”.
This type of company doesn’t require any capital to get started, and you’ll get the VAT number almost immediately, so you can start invoicing your clients and do your bookkeeping and taxes.
If you earn less than DKK 50,000 per year, then you don’t need to sign up for VAT. Otherwise, you’ll have to tick that off, and this step is important for when you do your bookkeeping.
The last step is to find a bank where you can have your business account. Here I can recommend Lunar. It’s a bank which revolutionised how we’re using banks in Denmark, and everything happens in their app.
You apply with your business for a business bank account. Simply follow the steps. It’s very straightforward.
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How To Send Invoices As A Freelancer In Denmark
There are some regulations in Denmark on what your invoices need to contain to be valid. The easiest way to solve this step is to sign up for a bookkeeping system like Dinero or Billy. These are both in Danish, but they are so good and help you so much that I strongly agree to use them.
I use Dinero, and it’s simply fantastic. It’s like having an assistant at hand, and it doesn’t cost you anything. Neither does Billy, and you can easily use that as well.
When you send out an invoice, it’s crucial it contains the following:
- Date
- Invoice number
- Your VAT number
- Your company name
- Your company address
- Buyers company name
- Buyers address
- Buyers VAT number
If you sign up for Dinero or Billy, then they take care of all this for you.
Remember, if you send an invoice to a Danish company, you often need to add VAT. The VAT in Denmark is 25%, but this is the applications Dinero and Billy take care of as well.
How To Do Bookkeeping As A Freelancer In Denmark
I will recommend you stick with the application you chose in the previous step, as these applications are both for sending invoices and doing your bookkeeping.
Bookkeeping in each country has different rules, and it’s sometimes impossible to keep up with, especially as a freelancer where you have a million other things to stay on top of.
Using Dinero would be the easiest for you as, when you do your bookkeeping, you can simply enter what the invoice is about, and then Dinero will bookkeep it for you in the correct categories.
It also scans your appendices to help you even faster do your bookkeeping. As mentioned earlier, it’s like having an assistant doing the heavy lifting for you.
How To Pay Taxes As A Freelancer In Denmark
Paying taxes in Denmark is pretty straightforward. You pay taxes on your surplus in your company as this is your salary. The more you earn, the more taxes you pay. But remember, all expenses you have in your company are subtracted from your surplus, and you don’t pay taxes on those expenses.
In Denmark, it’s called “B-skat”; the rate averages from 38% and upwards depending on your surplus. You have to make your advance statement on the Danish government’s website for taxes.
You have to state how much you expect to earn in the current year, and based on this, you’ll get 10 tax rates, which need to be paid every month except for July and December. You can pay them manually with a bank transfer or set it up with Betalingsservice.
Conclusion
So, to sum everything up, you need to get your private things in order first. Get a work permit, a CPR number, and a MitID.
With these elements in order, you can now go to Virk and create your company as a sole proprietorship company and get started right away.
With the company created you can sign up for Lunar to get your bank account. At the same time, while you’re waiting to be approved, you can sign up for Dinero or Billy to get your invoices, taxes and bookkeeping in order.
Remember to make your advance statement at the tax authorities and then pay your taxes monthly. You can constantly adjust your advance statement every month.
If you want a guide on how you start to get clients, which also applies in Denmark. Then, I’ve made a step-by-step guide to get clients.
FAQ
How can I become a freelancer in Denmark?
You can quickly start freelancing in Denmark with your current setup in your home country, but if you wish to create a Danish setup, then it requires some different elements.
You need to create a business entity, get a bank account and do all your bookkeeping online. Make sure all your appendices are saved in the cloud.
What is the freelance rate in Denmark?
The hourly rate ranges from $30 to $200+ depending on your experience, industry and clients. A tip of advance is to start low, and when you start to make a name for yourself in Denmark in your industry, then slowly increase your rates for new clients.
When you succeed with that, then increase your hourly rate for your current clients as well.