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Is that a good salary to leave in Copenhagen?

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souzacr

Dear all,

        I am exploring the possibilities of moving to Denmark to teach Computer Science in a university in  Copenhagen. I haven't received a formal offer, but I was informed that I will receive one. So, I want to ask a few question, and hope someone can help. First, some assumptions:
     - I am estimating my salary, as Associate Professor, based in this site:
    - I will be using the researcher tax scheme which is a 32,84% flat rate
    - I am assuming that I will choose the "no pension fund" option. In this case, 11,4% of my salary is paid to me and I should worry about the future.

     So, I've done some calculations below:

--> Incomes
+ 55,000  salary
+  6,270 pension fund (11,4%)
================================
+61,270 DKK (total income)

--> Deductions
-  4,400  AM-bidrag: labour market contribution is a mandatory 8% tax.
-  3,411 ATP pension: a minor mandatory labour market pension. (this one I got from the university web-site)
- 16,543 27% deductions
====================
-24,254

--> Net Sum
+61,270 -
24,254)
=========
+37016 DKK

--> Rent and Food
Based on previous answers in this site, especially from Nellie Berg
( /forum/profile.php … mp;lang=en ),  I read that rent and food for a family of 4 should cost about 22,000 DKK per month. So

+37,016 DKK
- 22,000 DKK
============
+15,016 DKK.

--> International School
I have kids and I am looking for an international school for them. I found one pretty good but very expensive that offers a scholarship for foreign researchers. However, this scholarship has to be added to my tax forms. The school fees for my kids would be around 274,000. If I have to pay 32,84% of taxes on top of the scholarship this would be around 88,668 DKK. I was informed that the first 10,000DKK is deductible but, I am not sure. I will assume that this is not correct.

I plan to save the money for the school every month so 88,668 DKK / 12 months = 7,389 DKK

+15,016 DKK.
- 7,389 DKK
==========
+ 7,627 DKK

Long story short, I will have at the end of the month about  7,627 DKK for additional expenses like dining out / food delivery once a week, ice cream, coffee, etc.  Buying new clothes, etc.

Questions:
===========
- Is that amount (+ 7627 DKK / month) reasonable for a family of four?
- I am assuming 22,000 DKK for rent, utilities and food (supermarket). Is that correct, Nellie Berg?
- Is the first 10,000 DK deductible even if I am using the researcher tax scheme?


   Thank you for your help!

                Cleidson

See also

Living in Copenhagen: the expat guideNeed advice on Aupair applicationIndians in DenmarkMoving to Copenhagen, International schoolsFree education on spouse visa
souzacr

subject should be: Is that a good salary to *LIVE* in Copenhagen? sorry for the typo.

I can't edit the post...

Nellie Berg

Hi Cleidson,

I'll take a closer look on your post tomorrow, but I should like some more information first.

Which school, where you have the information about the school fees? How old are your children?
And why should you be taxable of the scholarships?


/Nellie

souzacr

Dear Nelie,

    Here is the information about the scholarship since that might be useful for other people as well:

    I've contacted the admissions office and they informed me that about the scholarship being taxable.

     Looking forward to hearing from you!

              Cleidson

Nellie Berg

Your salary 55,000 + the pension contribution as you want it as part of your salary 6,270 = 61,270

You can deduct your own ATP contribution (95 monthly) from your salary before taxation. However, let’s forget all about the ATP as it is a minor amount, and your salary will also be a little higher due to holiday allowance.

Salary 61,270
Tax 32,84 % of this amount = 20,121
Net salary 41,149

Don’t expect rent and household to be less than 22,000 a month, but it all depends where you settle, the size of the flat and so on so maybe/probably more as I take that your children are teens?

I take that you'll get assistance to find a housing. The pay sites are most reliable. Take a look to get an impression of the market.

I was gobsmacked to learn that school fees could be that high. I thought it might be a mistake, but it wasn’t, and when you mentioned scholarships were taxable, I thought of state subsidies which aren’t.

Only work related income is taxated with the favourable 32,84 %, other income is taxated within the normal tax scheme. As far as I have read and understood the rules, you’ll be entitled to deduct your personal deduction (personfradrag 2021 46,700 DKK) from the scholarship before taxation, and as your spouse doesn’t work you may also be entitled to her personal deduction, but I won’t swear as this is a field I haven’t dealt with before. Do have it confirmed otherwise: Fee 274,000 – 93,400 = 180,600. Tax per cent, e.g. 42 %. Tax 75,852.

Schools in Denmark have a high standard, and you can even get the education free here:


This school has a reduced fee due to state subsidy.


You can also choose a general Danish state school which offers free education.  English is taught more or less from the very beginning. Worth a consideration.

/Nellie

souzacr

Dear Nellie,

    Thank you for your help!

    A couple of things, my daughters are 9 and 12.

    Two comments regarding your answer:

    - About the school is for EU citizens only (which is not my case) with very very limited spots available. I've been told it's almost impossible to get a spot unless you work for a EU state institution :-(

    - About the school they have this observation in their site: "the school fee for students enrolled without a CPR number (all grades) is 5000 DKK per month. This is due to the fact that without a Danish CPR number, the school will not receive state subsidy for your child." I've contacted them and they told me that I need to have the CPR by September 1, 2021. Otherwise, I will have to pay 5,000 DKK per month. So, I am assuming the worst case scenario that I won't be able to arrive before September.

    I've spent a couple of hours looking into international schools. It is not easy...

    Having said that, I have two related questions:
    1 - So, in the scenario I initially proposed, would the remaining amount (+ 7627 DKK / month) reasonable for a family of four?

    2 - In the scenario you proposed, the remaining amount is 13,114 DKK / month = 41.149 DKK (net salary) - 22,000 DKK (rent and household) - 6315,16 (international schools). Would that amount be reasonable for a family of four?

    Again, this remaining amount would be for additional expenses like dining out / food delivery once a week, ice cream, coffee, etc.  Buying new clothes once an while, etc.

     What do you think?

     Thanks again!

         Cleidson

ps: it sounded like 22,000 DKK for rent and household was a low value... I haven't checked the sites you sent because they don't have an English version, but I plan to do so soon.

souzacr

3 - one more question, if possible, how much you would estimate for household (food, supplies, cleaning, etc) only for a family of 4: a couple and 2 girls?

Nellie Berg

It's always difficult to estimate how much to put aside for the household as it depends on your personal preferences, needs and buffer zone you want. And in your case it's not a matter whether you can survive or not, it's a matter of having a good life where it's also possible to visit your family once a year.

Scenario 1 - out of question
Scenario 2 -  OK



Cleaning utilities or help? Forget the help, do it yourself. Household, ...... guesstimate 5,000 kr. Again it depends on what you want to eat, organic food, wine, and where you shop.

Europaskolen isn't only for Europeans, but is open for all nationalities. I know of an Asian boy, who attended the school, and his parents were privately employed. If you can get a free education here, I take that it is much sought, however, someone will be lucky and slip through the needle's eye.

/Nellie

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