raza990

Hi Guys,

Hope all of you are fine

I need an advise in moving to Denmark (Copenhagen). Let me provide summary about my education and work. I've done 4 years of bachelor's in Telecommunication Engineering and I'm from Pakistan and do remote job for Danish company since last 2 years. Since 2 years, they are providing me 8,500 DKR/month which is quite good for in Pakistan and my responsibilities to setup and maintain IT systems hence I'm from IT industry.

Now I got a job offer from UAE, and they are offering me 10,000 AED (2800$ approx.) with Medical, yearly ticket to home and Phone benefits. UAE is tax free zone, so I will get all money in my pocket and there will be expense of 3000 AED (900$ approx.) including shared room ,food and travel. so I can save upto 70% of my saving every month.

When I resigned from danish company, then they offer me a re-location to Denmark on Work (Positive List) VISA and offer me 22,000DKR /month before tax with no benefits. From internet research I'm shocked to know about tax deduction but ofcourse there will be government benefit if you pay tax - But because Denmark is too expensive so I can't save anything after normal living expense.

I would like from you guys that please provide how much salary I can get in my pocket after tax deduction with individual tax percentage info and what will be my living expense to live Copenhagen if I live in shared apartment, with using public transport and making Asian food at home - rarely go out for cinema and restaurants like once in a month.

I would also like if you can suggest me what should be good for me, as I'm going to be married after 3 years - I know 3 years is a long time but I have consider all things before moving to Denmark or UAE. The appraisal is usually come every 2-3 years .. So my salary will be increased after 2 years and I think might be it will 28,000 DKR (Just an idea - Not Sure) so do you think 28,000 DKR before tax would be good for couple with 2 rooms apartment.

Would appreciate your kind responses.

Thank You

Out of my Element

You might start by being more specific in your subject line. I usually avoid "need help" threads because they rarely are something I can help with.

nacho

I used to live in Denmark with my Danish other half for 6 years. Now we are living on the Swedish side.

The salary they offer you is low by Danish standard. You will have to pay around 40% income tax. Living cost is very high, eating out is very expensive.

Where is the company located? If it's in greater Copenhagen area then you will need to pay 5-6k DKK per month for a small apartment.

If I were you I will take UAE, 0% tax means you can save up money. Unless you want a Danish passport then you need to hang around until you are qualified for it.

GUWonder

Financially, at least for the duration of being employed, you'd be better off in the UAE since you'd save more money on a monthly basis due to lower taxes and a lower cost of living.

The cost of living in Copenhagen is relatively high, and the proportion of your income taken by taxes will be hugely different (higher) in Denmark than in the UAE.

jpatokal

If you're looking at the money, UAE, hands down.

But if you're looking to expatriate for good and want citizenship, then this is at least possible in Denmark (although it will take a good ten years!), while the UAE is a dead end.

GUWonder

In terms of legal residence and citizenship chances, yes. But in the UAE, it's possible for some to acquire residence status. That said, I don't trust the UAE when it comes to the rule of law, even of the kind of "rule of law" that exists in some ways still with the judicial/legal system in Pakistan, slow as it can be.

MSPeconomist

Is there a tax treaty with Denmark that could save you tax money for the first year or two?

gnaget

There is a tax scheme for special employees and researchers, but the minimum salary is around triple of DKK 22,000. The idea is to attract high value employees. I think the special tax is around 25%.

I would not go to DK on this salary. You will scrape by. Ask for double and free housing.

FlyingCow

The differential tax regime is, as you say, for salaries much higher than what the OP mentions. The total all-in differential rate is 32%.

In any case, the salary offered seems indeed very low for DK, even more with the 'no benefits' stated by the OP - I'm thinking mainly relocation assistance, moving costs, housing allowance, etc.

hordurg

Personally I would advise you to go with Denmark.

You have the change of a relocating permanently in the long-term in Denmark which would in the long-term give you and your future family a much better living standards.

From my experience the Middle-East does not treat other Asians very well, and many locals tend to look down on them.

Healthcare, schools, etc are included in the Taxes you pay in Denmark. You will most likely only be working a 7,5 hour workday, off all weekends, and probably at least a 20 day vacation (20 work days, so that is like 4 weeks).

I doubt the work conditions in the UAE would be that fair, or would they?

But if you are in this only for the money, and aim at moving back to Pakistan at some point, then UAE is probably a better choice

nacho

The Danish tax system is more and more like the US - you pay less (not that little still) and you get less. For example, the Danish public schools are not that good. More and more parents choose to pay for private schools and all the schools that has high scores have long waiting list.

A lot of small roads are now "private" roads, it doesn't mean it's yours, but you have the responsibility to clean it up e.g. fix the street light, clearing snow in winter......

Healthcare in Denmark is nice - but won't be for long either, there is a huge cut for the medical sector. It's better than Sweden for example, but again if you have $ you can get yourself treated in anywhere.

About living standards......I think if you have money in Pakistan, you can probably have a better life than in DK. Higher living standard = higher cost in everything including having someone to clean your house, fix your house, eating out.

GUWonder

The chances and ease of permanently settling in Denmark have been dropping over time; and the ability of a non-European to bring in a non-European spouse has become rather complicated and not all as cheap as it was say 20 years ago. Even for my Danish friends with non-European spouses, it's not been all that easy or cheap at any point in the past 15 years to settle in Denmark with a foreign spouse with permanent residence in mind.

And as to the experience of being subjected to racist prejudice and being looked down upon by local citizens, that kind of experience has been skyrocketing in Denmark -- skyrocketing so much so as to narrow the gap -- and perhaps actually cross the gap -- when it comes to the experiences of rather rich and/or well-educated South Asians in comparing these two markets.

For South Asian professionals in Dubai with children in the picture, Dubai may even be better than Denmark, but it's a place where money talks more than anything even for education; but for daycare-aged children, the balance would likely be different.

For healthcare, I would take routine employer-funded medical options in the UAE more than the health care systems any place in the Nordic/Scandinavian countries.

Personally, I'm no fan of Dubai and prefer Copenhagen -- although for 22,000 DKK per month, I'd not even consider Copenhagen, especially if considering bringing in a non-European spouse and long-term retirement lifestyle are serious considerations from the start of the relocation.