Despite the high taxes and prices that make you rather choose canned noodles every evening over eating out, the Danish Kingdom is highly generous with international students. Besides the well-known benefits such as free education and SU grants for European Students – there is a little more about this country that we fell in love with: even more benefits!
Here are a few:
The double tax deduction for students
Fradrag som udenlandsk studerende
Not a European Student? No problem!
The Danish Tax Agency is here to motivate you to work and be financially independent by extending your minimum income before tax.
Let me explain: If you are from one of the following countries, your “fradrag” (the Danish term for a minimum salary you are allowed to get without paying tax) doubles. In 2020, the general “fradrag” for most students is DKK 46,500 per year. Thus, your minimum allowance will be DKK 93,000 instead.
What countries can get double tax exemption rate (fradrag) ?
Now, lucky for you, the selected countries are both European and non-European:
• The Filipinos
• Faroe Islands
• Trinidad and Tobago
You can find all the information on the country list here. It is in Danish, but Google translate is your best friend here.
The application is simple, just download the form from this link, send it to SKAT along with your documents (ID, work contract and study confirmation).
In most cases, the answer comes in only a few days.
Loans from the municipality (kommune) for moving in your new apartment
Lån til beboerindskud
We know the struggle, 3+ months of deposit, and at least one month of prepaid rent may definitely hit your finances hard when you move into a new apartment in Denmark.
Luckily, every municipality in Denmark is able to help you out with your first deposit (both for renting the whole apartment and single rooms in a shared apartment) under a few conditions:
You need to have a kitchen or kitchenette (therefore you cannot apply for this loan to live in a student dorm with a shared kitchen) and have a stable income under DKK 170.617 per year. Already surprised? Wait for it… The loan does not have an interest rate in the first five years. After five years have passed, the rate is at 4,5%- but we are pretty sure you will manage to pay it before 😌
How to apply for kommune loan for moving to new apartment?
More information on the loan conditions can be found here: (in Danish, requires to log in on borger.dk)
For application forms and requirements, simply go to your “kommune” (municipality) website.
Housing benefits for students
Once you have moved in your new place and bought all the candles you found in your nearest shop to meet the Danish standards of hygge, the“Udbetaling Danmark” (Public Benefits Administration) is here to give you a little help with your (probably high) spendings on the monthly rent.
The housing benefit offered by Udbetaling Danmark is a tax-free monthly grant(usually hovering around 10 to 20% of your monthly rent excluding electricity, heating, etc.) which almost anyone can get under only a few special conditions, such as your income (just as for the loan, you need to have a stable income to prove that you can afford the place) and whether you have a kitchen or kitchenette.
Your housing benefit will be calculated depending on the following factors:
• your rent, excluding costs for electricity, water, heating, etc.
• the size of the tenancy (in square meters)
• how many children and adults are included in the household
• the income and assets of adults living in the home
• whether you are a senior citizen or a disability pensioner
• other factors;
How to apply for housing benefits in Denmark?
Before applying, you can also calculate your potential housing benefit online by logging in to borger.dk to see whether you meet the requirements, and an approximate amount you could receive monthly. Here is a link.
After you are done with the calculation, the application process is just as easy, simply go to borger service and pick a form depending on the property type – apartment/house, room or dorm, and send the application.