Taxation in Greenland for Expats: Income Tax and the (Fake) Property Tax

Published on April 27, 2026 and written by Cyril Jarnias

Settling in Greenland isn’t just about getting used to the cold, the polar night, and the distances. For an expatriate, the shock also comes from a very unique tax system: no VAT, no wealth tax, no “real” property tax… but a high, simple income tax, largely withheld at source.

An autonomous, simple… and high-rate tax system

Greenland is an autonomous country within the Kingdom of Denmark. Since the introduction of Home Rule in 1979 and then the Self-Government Act of 2009, it has had its own tax system, distinct from Denmark’s. The reference legislation for income tax is notably the Inatsisartut Act No. 12 of November 2, 2006, supplemented by Act No. 11 on tax administration.

Unlike many European countries, Greenland has chosen a seemingly very simple taxation model: an almost “flat,” relatively high rate applied to a net base after deductions.

Greenlandic tax model

Withholding tax

The basic principle is withholding at source. The employer directly withholds an “A-tax” from the employee’s salary, based on a tax card (skattekort) provided by the Greenland Tax Agency (Skattestyrelsen). Without a tax card, the employer must withhold 45% of gross salary, which encourages new arrivals to regularize their situation very quickly.

At the same time, certain income (fees, dividends, certain interest, B-income) is subject to a B-tax, paid by the individual through monthly installments.

A tax made up of three layers

The structure of income tax is based on three levels:

Depending on the municipality, the overall rate on earned income is around 42 to 44%. For certain areas outside municipalities (isolated bases or stations), a reduced total rate of 36% applies.

Rates vary by municipality

Since the tax is partly municipal, the effective rate depends on your tax residence. The competent municipality is generally the one where you resided or stayed on September 1 of the year before the tax year.

These rates may be revised annually by the Inatsisartut.

Full or limited: understanding your tax residence in Greenland

For an expatriate, the key question is whether they are subject to full or limited tax liability. The entire mechanism of rates, deductions, and declarations rests on this distinction.

Full tax liability: the rule after 6 months of stay

An individual becomes fully taxable in Greenland if they:

– establish a domicile there (purchase or rent a home to live in), or

– stay there for at least six consecutive months, only briefly absent (vacations, short trips).

In this case, they are taxed on their worldwide income (principle of worldwide income taxation), with one important exception: income and expenses related to properties located outside Greenland are excluded from the tax base.

The starting point for full tax liability is, in practice, the actual date of arrival in Greenland, or the start of the period of actual presence if one has already acquired a home but does not yet occupy it.

Limited tax liability: only Greenland-source income

An expatriate who does not meet these conditions (shorter stay, one-off assignments, no local home) is in principle only taxable on their Greenland-source income, under limited tax liability.

– salaries for work performed in Greenland;

– business profits from a permanent establishment in Greenland;

– income from self-employment carried out from a fixed base or beyond a certain duration of stay;

– income from real estate located in Greenland, including capital gains on disposal;

– dividends from Greenlandic companies;

– royalties from Greenlandic sources;

– certain income of directors, artists, athletes, pensions, or Greenlandic study grants.

For these limited-liability taxpayers, a small standard allowance applies: the lesser of 10% of Greenlandic taxable income and 1,000 DKK per year.

Short-term rules and double taxation agreements

Greenland has a limited number of bilateral tax treaties, mainly with:

– Denmark;

– the Faroe Islands;

– Iceland;

– Norway.

These agreements affect the allocation of the right to tax employment income.

In the absence of a treaty (case of a third country):

With a treaty (Denmark, Faroe Islands, Iceland, Norway):

– if presence in the country does not exceed 183 days in any 12-month period, and in the absence of labor leasing, the tax may remain entirely in the sending state;

– if the 183-day threshold is exceeded, the individual generally becomes fully taxable in Greenland from the first day of presence.

Special rules also exist for: behavior in public settings, social interactions, and cultural norms.

– Danish civil servants seconded by the public administration: no Greenlandic tax if the stay is less than 60 days; retroactive local taxation from day one if the threshold is exceeded;

– employees made available to Greenlandic entities by foreign temporary work agencies: taxation from day one in Greenland, as the local employer is considered the “real” employer.

Income tax: what does an expatriate actually pay?

Once the residence situation is clarified, it remains to determine which categories of income are taxable and which expenses can be deducted.

Taxable income

For a fully taxable expatriate, the tax base includes all active and passive income, except that from real estate outside Greenland. This notably includes:

– salaries and wages;

– benefits in kind (free or subsidized housing, meals, company car, phone, internet…);

– income from self-employment or partnerships;

– public or civil service pensions and originally deductible private pensions;

– interest paid by Danish, Greenlandic, or foreign financial institutions;

– dividends from Danish or foreign companies.

Certain work-related allowances are taxable if they exceed the per diem rates applicable to civil servants or if they do not correspond to expenses actually incurred on behalf of the employer (e.g., travel allowances).

Exempt income

The system also provides a list of fully exempt income, including:

– proceeds from the sale of personal belongings (private effects);

– inheritances, in most cases;

– the value of housing you occupy in your own property;

– certain benefits related to personal consumption of game or fish caught by yourself;

– per diems, travel or relocation expenses, free travel granted under rules applicable to civil servants;

– certain bonuses (anniversaries, severance) or lottery and betting winnings when tax has already been paid in Greenland or Denmark.

A specific exemption ceiling for B-income (miscellaneous small income) is set annually by the Inatsisartut. For 2025, it is 5,000 DKK for fully taxable individuals.

Deductions and allowances: what flexibility to reduce the bill?

Greenlandic taxation, though “flat” in its rates, is based on a fairly structured deduction system. For 2025, the main amounts are as follows:

These amounts are prorated based on the number of days of tax residence in the year.

Professional expenses and other charges

Under full tax liability, the taxpayer can deduct: tax charges and professional expenses incurred in the course of their activity.

Specific rules apply the year of moving to Greenland for interest, as well as for losses related to certain holdings in Danish structures.

On the other hand, the following are not deductible:

– private expenses (housing, food, dual residence, etc.);

– unemployment insurance or early retirement contributions;

– contributions to foreign pension schemes (including Danish or Faroese).

Expatriates may nevertheless choose not to itemize their actual expenses and instead opt for a standard deduction, the amount of which is set annually by Parliament. You cannot combine actual expenses and the standard amount.

Employment deduction

To encourage work, an “employment deduction” mechanism is provided. For 2025, it allows fully taxable individuals to deduct 17.5% of their earned income (A- and B-income, dividends, and deductible pension contributions), beyond the personal and standard allowances, up to a limit of 15,750 DKK per year.

Limited-liability taxpayers, on the other hand, are entitled to a modest standard allowance: the lesser of 10% of their Greenlandic taxable income and 1,000 DKK.

Pension specifics: deductible, but only in Greenland

One of the classic pitfalls for expatriates concerns pensions. Contributions are deductible only if paid into a pension scheme established in Greenland. Contributions to foreign schemes (including Danish) do not qualify for tax deduction, but benefits subsequently paid by those foreign schemes are in principle exempt in Greenland.

Furthermore, there is a legal obligation to contribute to a pension for anyone:

– fully taxable in Greenland;

– aged at least 18;

– whose annual income exceeds 125,000 DKK.

The mandatory contribution rate increased to 11% in 2025 (10% in 2024), calculated on income subject to A-tax.

The 35% gross salary scheme: a key tool for expatriates in mining and major projects

To attract specialized labor in strategic sectors (mining exploration, major works, airport construction), Greenland has implemented a preferential tax regime highly sought after by expatriates: the “gross taxation scheme” at 35%.

Who can benefit from the 35% scheme?

This scheme applies to people employed in:

– exploration and exploitation of mineral, oil, or gas resources;

– certain major construction projects located outside existing towns and villages;

– airport construction projects carried out for the Greenlandic government.

To benefit from it, you must notably:

– not have been taxable in a Greenlandic municipality during the six months prior to starting the job;

– be employed specifically on the targeted projects (and not combine them with other ordinary jobs in Greenland).

Employees working on ice and water extraction for export purposes are explicitly excluded from this scheme.

How does gross taxation work?

Under this scheme, tax is levied at a flat rate of 35% on gross income (salaries and benefits in kind such as housing and meals), with no deductions allowed. Only certain employer payments to pension schemes may be excluded from the base.

Special payment rules apply for companies operating under this scheme, notably in cases of direct payment to the Bank of Greenland, with specific references (IBAN GL0964710001002616, BIC GRENGLGX).

For expatriates, this scheme can be advantageous when the combination of standard rates (up to 44%) and deductions would not significantly bring the effective rate below 35%, especially if actual expenses or family charges are limited.

Administrative procedure: tax cards, declaration, and “Slutskat” notice

Even in a system said to be “simple,” the practical steps remain numerous for an expatriate.

Prior registration and tax card

Anyone coming to settle in Greenland must register with the Tax Agency. An “advance tax registration” allows the withholding rate and applicable deductions to be determined in advance.

New arrivals can be registered as fully taxable before reaching the six-month presence threshold, if they can provide proof of an employment contract lasting more than six months. This is crucial to avoid a confiscatory withholding of 45%.

Following this registration, the Tax Agency issues:

– a main tax card (A-tax card) intended for the primary employer, indicating deductions and the rate to apply;

– a secondary card (bikort), without deductions, for any other employers.

Coordination with Denmark for people arriving from the Kingdom

An expatriate arriving from Denmark must also apply for exemption from Danish tax withholding at source. They must complete form 01.005 “Ansøgning om fritagelse for dansk skattetræk,” available on the Danish tax authority website (skat.dk).

Annual declaration and adjustment

Even though tax is largely withheld at source, most taxpayers (except for certain expatriates under the special 35% scheme or those exclusively receiving final withholding tax) must file a tax return.

– Filing deadline: May 1 of the year following the tax year. Late filing incurs a penalty of 200 DKK per day, capped at 2,000 DKK.

– Filing method: online, via the Tax Agency portal (www.aka.gl or www.sullissivik.gl) with a digital ID (MitID).

If the final tax is higher than the withholdings:

– the difference must be paid in three installments, due approximately on September 20, October 20, and November 20;

– an additional 8% surcharge is applied to the arrears.

If the final tax is lower than the withholdings:

– the overpayment is refunded before September 1;

– the taxpayer receives 2% interest on the credit.

Tax audit and statute of limitations

In the event of an audit, the Agency sends a letter of intent outlining the facts and the proposed adjustment. It generally has until October 31 of the fifth year following the tax year to amend an assessment, except in cases of significant new information not attributable to the taxpayer or the administration.

The taxpayer has the same five-year period to themselves request a revision of a past year.

Real estate in Greenland: no conventional property tax, but very specific rules for foreigners

For an expatriate, the topic of “property tax” in Greenland is misleading. There is no recurring tax on private property ownership comparable to French taxe foncière or Anglo-Saxon council tax. But that doesn’t mean owning or using real estate is tax-neutral, or legally straightforward.

No private land ownership: everything is about usage rights

In Greenlandic law, inspired by Danish civil law but substantially adapted, the rule is radical: land belongs to the state or municipalities. There is no private land ownership in the classical sense.

However, individuals and companies can obtain:

– exclusive usage rights to a plot, called allotments or rights of use;

– temporary or long-term concessions, particularly for commercial or industrial activities.

Buildings, on the other hand, can be owned and may be subject to compensation or indemnification (e.g., expropriation, as seen during the expansion of Nuuk Airport).

No recurring “property tax”… but several one-off taxes

From a strictly fiscal point of view:

– there is no conventional property tax on real estate for private use;

– there is no wealth tax.

– Capital gains on property: the gain realized upon the disposal of a usage right or building located in Greenland constitutes taxable income (under limited or full liability), at the overall income tax rate (≈ 42–44%).

– Stamp tax (registration duty): a tax of 1.5% of the transfer price is due upon signing a deed of transfer of real estate or establishing a mortgage; the same tax applies to the transfer of ships, including through the sale of shares in owning companies.

Some sources mention that municipal taxes may exist in connection with properties (services, valuation…), but these do not constitute a structural annual property tax in the usual sense.

For an expatriate investor, this means no annual “property tax” bill, but they should plan for:

– a tax impact on rental income (taxed as Greenland-source income);

– taxation on any capital gain upon resale;

– a stamp duty of 1.5% upon acquisition, sale, or placement of collateral on the property or usage right.

A highly regulated housing market, especially for foreigners

Beyond tax issues, an expatriate’s ability to become a building owner or holder of a usage right is heavily controlled. A controversial law, adopted by the Inatsisartut in November 2025 (effective January 1, 2026), has tightened rules for acquisitions by foreigners.

The main principles are as follows:

– Free acquisition for citizens and residents: Citizens or permanent residents of Greenland, Denmark, and the Faroe Islands may freely purchase property and usage rights.

– Exemptions and special cases:

– financial institutions based in Greenland, Denmark, or the Faroe Islands are exempt from these restrictions;

– transfers by inheritance, division of community property, or intra-family gifts escape the new limitations;

– existing foreign holders at the time the law takes effect retain their rights;

– in certain cases, a foreigner may apply for a derogation, granted or not by the government (Naalakkersuisut) based on their ties to the country, the risk of speculation, and economic and geopolitical interests.

For an expatriate drawn by the glaciers and Greenlandic tranquility, this law means that buying a home in their own name, even to live in, often requires several years of local tax presence or obtaining explicit political approval.

Other taxes and charges to be aware of

Even though income tax takes the leading role, an expatriate must factor in a number of other levies.

VAT, customs duties, and excise duties

Greenland is outside the EU VAT system. It applies no VAT on goods or services. In return, it makes extensive use of targeted excise duties and import duties:

– imports of vehicles (cars, snowmobiles, scooters);

– alcohol, tobacco, sugar, chocolates, soft drinks, coffee, tea, certain food products;

– petroleum products (heating, electricity, fuels);

– specific taxes on certain fisheries, lottery and gaming activities, motorized vehicles, etc.

Social contributions: AMA and ATP

Social security contributions in Greenland operate on a lightened scheme:

– employees do not pay Greenlandic social security contributions directly;

– employers bear a labor market contribution (AMA):

– 1.1% of gross payroll in 2024;

– 2.1% for income year 2025, calculated on gross salary, including benefits in kind.

In parallel, the Danish ATP (basic pension) system continues to apply to most Danish, Greenlandic, and Faroese employers. Foreign employees stationed in Greenland for less than six months may however be exempt from ATP.

Inheritance and gift tax

In matters of inheritance, the general line is that inheritances are in principle not taxable in Greenland. A special mechanism allows a surviving spouse, when continuing the estate’s undivided ownership, to take over the deceased’s tax position, but this rule mainly concerns technical situations.

Some sources also indicate that inheritance tax rates aligned with those of Denmark may serve as a reference: 15% for close heirs, up to 36% for other beneficiaries, but these elements are more a matter of Danish coordination than a distinctly Greenlandic tax.

Double taxation: coordination with the home country

Expatriates must finally consider the risks of double taxation. Greenland applies the principle of worldwide taxation for residents, but also recognizes taxes paid abroad.

American expatriates, for example, remain required to report their worldwide income to the IRS, and can generally offset tax paid in Greenland using the Foreign Tax Credit. Coordination with a tax professional familiar with both the U.S. and Greenlandic systems is then highly recommended.

In practice: what an expatriate settling in Greenland should remember

To conclude, the Greenlandic tax environment can be summed up in a few key points for an expatriate:

In an environment where temperatures remain below freezing for most of the year and distances are measured in hours of helicopter flight, Greenlandic taxation offers a form of stability: fairly clear rules, rates known in advance, and an accessible administration (Skattestyrelsen) that publishes its texts on the official Nalunaarutit platform and assists expatriates from its offices in Nuuk, Ilulissat, Qaqortoq, Sisimiut, Maniitsoq, and its Copenhagen representative office.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

Find me on social media: