Tax-funded care for residents and legal workers

Danish public health care is financed mainly through general taxes, and the health ministry’s overview of the system makes clear it is not built on insurance contributions. For residents most of it costs nothing at the point of use, including visits to a GP, emergency wards and treatment in public hospitals, while dental care and prescription medicine come with co-payments.

Lifeindenmark, the national portal for newcomers, says cover extends to anyone with a CPR number, the Danish civil registration number, and to anyone working legally in Denmark. Responsibility is shared between the state, the regions and the municipalities; the regions run public hospitals and psychiatric care and, through agreements, general practice.

From CPR number to yellow card

Registering in the CPR at a Danish address is what sets things in motion. The new resident chooses a family doctor, and the yellow health insurance card, the sundhedskort, arrives by post in about two to three weeks, with a digital copy in the Sundhedskortet app. Getting the CPR number itself can take a while: one international citizen service office has given 3 to 6 weeks, so a start date soon after arrival is worth planning around.

Residents also pick one of two insurance groups. As the national health portal, sundhed.dk, summarises them, in group 1 the region pays for GP care and for specialists seen on a GP’s referral, while group 2 members can book a specialist without a referral but pay part of the fee themselves. A person can switch groups no more than once a year. Under a 2024 executive order, a newcomer in group 1 who has not chosen a GP within 8 days of the municipality asking is assigned one.

Employing someone in Denmark from abroad

Because care is paid for through taxes, there is no health insurance contribution on Danish payroll for either employer or employee. The Danish tax agency’s guidance for non-Danish businesses adds a point that matters for a US company: a foreign business with no permanent establishment in Denmark does not have to declare and pay A-tax or the labour market contribution (AM-bidrag) to the agency, but it must register in RUT, the register of foreign service providers. For the ATP supplementary pension, the agency points employers to ATP’s own rules.

EOR providers describe two common routes for a company with no Danish entity: an employer of record that acts as the legal employer, or engaging the person as an independent contractor. They also warn that an employee who concludes contracts or represents the company locally can create a permanent establishment, which changes the tax position. Check which setup fits with a local tax adviser in Denmark before the hire. Our guide to health coverage for EOR employees and contractors abroad compares the routes in general terms.

Employer-paid health insurance and Danish tax

Employer-paid health insurance, sundhedsforsikring, is a familiar staff benefit in Denmark, and the tax agency handles it under its rules for staff benefits (personalegoder). From the 2012 income year, following Law no. 1382 of 28 December 2011, this cover stopped being generally tax-free. A binding ruling from 2012 draws the line: a scheme limited to preventing or treating work-related injury or illness can stay tax-free, but if the policy also covers private matters, the whole premium the employer pays becomes taxable income for the employee.

The agency’s current staff-benefit page also keeps health insurance outside the allowance for small benefits. So an employer funding a broad private plan should expect it to be taxed to the employee unless the cover is strictly work-related.

Partners and children

Family members who move to Denmark with the worker are covered in their own right and get their own card. Children are covered together with a parent until age 15 and are insured independently after that. If the family stays behind in another EU or EEA country or in Switzerland, they need an S072 or PD S1 entitlement document, which Udbetaling Danmark issues.

For a benefits request, note where each family member lives, because that decides which public system covers them and who any extra cover would be for.

Where an international plan sits

Public cover arrives with residence and is funded through taxes, so an international plan does not stand in for any Danish scheme. What it can do is add private access on top of what the yellow card already provides, and when the employer pays for it, the tax treatment described above applies as it would to any health policy.

On the supply side, Danish insurers are supervised by the financial supervisory authority, Finanstilsynet, and insurers based elsewhere in the EU or EEA can sell under EU passporting. Whether a particular insurer can cover an employee resident in Denmark is for that insurer to confirm.

Asking Mithril1 for an introduction

Mithril1 does not sell or recommend health plans. On request, we can introduce you to a benefits partner that works on health coverage for international and remote teams. Use the quote form on this page to tell us that the person lives in Denmark, whether they have their CPR number and yellow card yet, how many people you employ outside the US and whether family members should be included, and we will pass it to the partner. From there, eligibility, the plans on offer and their cost are for the partner and the insurer to settle.

The European overview compares the region, and our pages on Sweden and Germany cover two neighbours. The international health insurance overview and the employee benefits hub link every other guide.

A few useful answers

Common questions

Does an employer pay a health contribution for a worker in Denmark?

No. Public health care is funded mainly through general taxes, so Danish payroll carries no health insurance contribution for the employer or the employee.

Do Danish employees pay tax on private health cover from their employer?

Usually, yes. From the 2012 income year employer-paid health insurance has not been generally tax-free. Only cover limited to work-related injury or illness can stay tax-free, and a policy that also covers private matters makes the whole premium taxable.

How does a new hire get the yellow health card?

By registering in the CPR at a Danish address and choosing a family doctor. The card arrives by post in about two to three weeks, and a digital version is in the Sundhedskortet app.

What does a foreign company without a Danish entity have to register?

The Danish tax agency says a non-Danish business with no permanent establishment in Denmark does not have to declare A-tax and AM-bidrag to it, but must register in RUT, the register of foreign service providers.

Are an employee's children covered in Denmark?

Yes. Children are covered with a parent until age 15 and are insured independently after that, and family members who move with the worker get their own card.

International Health Insurance for Remote Employees in Denmark