News › Weekly Alert Article
Foreign Pension Providers Enter Danish Market
The Danish market for pension providers is generally considered lucrative. In 2010, an estimated USD 18.6 billion or an approximate average of USD 3,440 per Dane was set aside in pension schemes, an amount which is expected to increase in future years. Only a few foreign pension providers are currently operating in Denmark but they have paved the way and others are expected to follow in the near future. Taxand Denmark examines the recent rise in foreign pension providers in Denmark and assesses how this will affect taxpayers.
Until 2008, favourable tax treatment of Danish pension schemes effectively excluded foreign pension providers from the Danish market. As a result of a judgment from the EU Court of Justice (C-150/04), the Danish legislation was amended in order to facilitate the access of EU / EEC-based pension providers to the Danish market. Access to the Danish market under the favourable tax treatment however still requires prior approval from the Danish Tax Authorities.
Taxand Denmark provides a detailed look at the issue of foreign pension providers in he Danish market
As a result of amendments made, the Danish market for pension providers has been open for foreign pension providers since 2008. As of 2010, payments to various pension schemes amounted to approximately USD 18.6 billion. It is generally expected that the market for pension products will increase in the years to come due to widespread uncertainty concerning the longevity of state-funded pension schemes.
During the past year, a few foreign pension providers have entered the growing market for pension products in Denmark. Despite this development, the Danish market for pension products largely remains in the hands of Danish pension providers with only a handful of foreign pension providers represented in Denmark.
Your Taxand contacts for further queries are:
T. +45 72 27 33 22
Poul Erik Lytken
T. +45 72 27 35 31