Starting a Business Abroad: The Entrepreneurial Bet of Expats in Greenland

Published on April 28, 2026 and written by Cyril Jarnias

Setting up as an entrepreneur in Greenland is anything but a standard project. Between the Arctic climate, a legal framework inspired by Danish law, heavy dependence on fishing, and a stated desire to diversify the economy, the territory offers a rare mix of opportunities and constraints. For an expatriate, successfully establishing yourself requires mastering both the rules of business creation, taxation, local culture… and the very concrete realities of life in the Arctic.

Understanding the General Framework Before Getting Started

Greenland, officially Kalaallit Nunaat, is an autonomous country within the Kingdom of Denmark, with its own parliament and government. The capital, Nuuk, is home to nearly a third of the territory’s approximately 56,000 inhabitants. The official languages are Greenlandic (Kalaallisut) and Danish, but English is fairly common in business circles.

Good to know:

The official currency is the Danish krone (DKK). Greenland is not part of the European Union; therefore, it is not subject to the single market or EU VAT. This situation creates barriers (customs, import procedures, visas) but can also offer niches for specialized export-oriented activities.

A small economy but with a high per capita income, Greenland still relies heavily on fishing and subsidies from Copenhagen. Over 90% of exports come from seafood products (shrimp, Greenland halibut in particular), and nearly half of public revenue comes from a Danish financial transfer. Local authorities have made economic diversification a priority: mining, tourism, hydropower, water and ice, business services. It is within this movement that the opportunity for expatriates to bring skills, capital, and new ideas lies.

An Atypical Physical and Social Environment

Geographically, everything is extreme: the largest island in the world, over 80% covered by ice, no roads between towns, a network of 13 civilian airports, 43 heliports, and a largely structured logistics economy centered around maritime and air transport. Royal Arctic Line handles the majority of maritime freight, Air Greenland the bulk of domestic and international traffic.

Tip:

Greenlandic society is characterized by small communities, a very dominant public sector, and a mixed Inuit and Nordic culture. For a foreign entrepreneur, the limited size of the local market often requires planning an export or B2B services strategy from the outset. Moreover, the relational approach and building long-term trust are essential elements for sustainable establishment.

Where are the Real Opportunities for an Expatriate in Greenland?

Despite the focus on fishing, several sectors are clearly identified by the authorities as promising, both for the local economy and for foreign investors or business creators.

Natural Resources and Processing Industries

Greenland’s subsoil contains a range of mineral resources: gold, nickel, copper, zinc, lead, rare earth elements, uranium, titanium, graphite, feldspar, olivine, precious stones (rubies, pink sapphires). Mines are already operating (e.g., ruby/sapphire, anorthosite), and several projects for extracting strategic metals are under study, particularly in the south of the country.

For an expatriate entrepreneur, it is not realistic to go it alone in heavy mining operations. However, the entire ecosystem of services around these projects is developing: engineering, specialized logistics, maintenance, training local teams, security services, industrial catering, digital solutions for operations monitoring, etc. The mining legislation also provides for specific taxation (variable royalties depending on minerals, unlimited loss carry-forward rules for license holders), which can make certain business models attractive if the regulatory framework is well anticipated.

Attention:

Resource exploitation licenses (water, ice, hydroelectricity) may include a corporate income tax exemption, offset by the payment of specific royalties. This arrangement is particularly decisive for water bottling, ice valorization, or renewable energy production projects intended for electro-intensive industries.

Fishing, Aquaculture, and Seafood Processing

Fishing remains the economic heart of the country: approximately 4,400 people work directly in the sector, with a fleet ranging from thousands of small boats to about twenty large trawlers. The processing industry is heavily concentrated around Royal Greenland, a global giant in cold-water shrimp.

This does not mean there is no room for newcomers. A foreign business creator can position themselves in several niches:

– by-product valorization (fishmeal, dietary supplements, omega-3 rich oils, collagen)

– quality services, traceability, sustainable certification targeting premium markets

– cold logistics solutions, flow optimization, or supply chain digitalization

– local micro-processing oriented towards tourism or niche gastronomy

Good to know:

This sector is subject to strict regulation, including quotas and traceability requirements. It is often necessary to partner with local entities that already hold fishing licenses to integrate into the system.

Arctic Tourism and Associated Services

Greenlandic tourism, still limited in volume compared to Iceland, is growing strongly. Arrivals increased from about 77,000 visitors to over 100,000 in a few years, before the pandemic shock. The majority arrive by air (via Iceland or Denmark), but polar cruises play a significant role.

Development axes are clear: adventure tourism, wildlife watching, cruises, hiking on the ice cap, discovering Inuit cultures, urban stays in Nuuk, and, eventually, the development of Arctic transport hubs if the Northwest Passage opens further to commerce.

For an expatriate entrepreneur, the challenges are multiple:

– designing sustainable tourism products that respect the environment and local communities

– filling gaps in accommodation, restaurants, cultural services, specialized guided activities (photography, kayaking, dog sledding, citizen science expeditions, etc.)

– offering B2B services to existing operators (travel agencies, cruise lines, airlines)

Nuuk aims for certification as a sustainable tourist destination; investors who truly integrate these principles (flow management, carbon footprint, cultural integration) will have an advantage in dialogue with authorities and the population.

Renewable Energy and Electro-Intensive Projects

With approximately 70% of its electricity from hydropower (five operational hydroelectric plants), and additional projects under consideration, Greenland positions itself as a potentially attractive territory for industries with high electricity consumption seeking low-carbon energy.

Example:

In the context of large energy projects, such as an aluminum smelter, it is not the mega-projects themselves that are directly accessible to small entrepreneurs, but rather an entire chain of derived services. These opportunities include energy consulting, maintenance, engineering, digital monitoring, storage solutions, and potentially the co-development of small hybrid units to power remote communities.

Digital and Critical Infrastructure

The recent debate on Greenland’s “digital sovereignty” highlights another source of opportunities. Almost all online public services, administrative emails, and part of the digital economy rely on infrastructure hosted outside the territory, mainly by US giants (Microsoft, Google, Amazon, Cloudflare). Analyses show, for example, that:

This dependence opens the way for projects involving local data centers, sovereign cloud solutions for the administration, content caches, cybersecurity tools, or infrastructure monitoring. Specialized companies can also support the establishment of a local internet exchange point (IXP) or disconnected backup solutions for critical services like healthcare (Pipaluk telemedicine), education, or finance.

Choosing the Right Legal Form in Greenland

The Greenlandic legal framework, largely inspired by Danish law, offers several forms of establishment for expatriates. The choice depends on the size of the project, risk level, financing needs, and time horizon.

Main Company Forms

The two dominant capital structures are:

In both cases, the founders can be individuals or legal entities, local or foreign. Management of an ApS can be handled by a simple management body (one or more managers), whereas an A/S must have both an executive board and a board of directors or supervisory board of at least three members.

From a practical standpoint, many small and medium-sized enterprises, especially those led by expatriates, choose the ApS for its more accessible capital and lighter governance requirements.

There are also complementary structures:

3

Three main legal forms are suitable for expatriates in Sweden: sole proprietorship, partnership, and branch.

Branch or Subsidiary: A Strategic Decision for the Expatriate

For an entrepreneur already heading a company abroad, the question arises between opening a branch or forming a local subsidiary (ApS or A/S).

The branch is less capital-intensive, with no minimum requirement and no double layer of governance. However, it remains fiscally autonomous in Greenland and must file financial statements (either those of the parent company or specific reporting). It directly exposes the parent company to all local responsibilities and litigation. A particularity: the branch manager must be resident in Greenland.

Good to know:

Unlike a branch, a subsidiary is a distinct legal entity, which limits the financial liability of the parent company. This structure facilitates the entry of Greenlandic or Nordic investors into the capital and enhances credibility with authorities and large public companies. For a long-term project planning to employ local staff, forming a private limited company (ApS) is generally recommended.

Registration Procedures

All businesses must be registered in the Danish Central Business Register (CVR), via the online platform virk.dk. The procedure is digital, free of registration fees, but requires gathering a set of information:

– company name

– postal address in Greenland

– phone number, legal form, business purpose

– share capital, main directors

– activity code (industry)

Companies that hire must also register as employers (Sulinal register), particularly for withholding tax and labor market contributions.

Founders residing abroad without a Danish electronic ID (MitID) cannot use certain automated online tools, which lengthens the procedure (up to approximately eight weeks). In these cases, it is practical to mandate a local representative or specialized advisor, who can sometimes act as a technical founder during the incorporation process.

Corporate Taxation: A Simple Regime but Needs Careful Anticipation

Greenlandic taxation is autonomous from that of Denmark, even if certain Nordic-inspired principles remain. For an expatriate entrepreneur, it presents specificities to consider from the business plan stage.

Corporate Income Tax

Corporate income tax is based on a uniform base rate of 25%, plus a surcharge of 6% calculated on the tax amount itself. The effective rate therefore comes out to approximately 26.5%. There is no municipal tax on profits, nor VAT (in the sense of a generalized EU-type system).

The principle of tax residency is classic: a company is considered resident if it is registered in Greenland, has its place of effective management or its principal establishment there. In that case, it is taxable on its worldwide income, except for real estate income from properties located outside the territory.

Good to know:

Non-resident companies are only taxed in Greenland on profits from a permanent establishment in the country. An important particularity: they are also taxable on profits from the exploration and exploitation of hydrocarbons or mineral resources, provided there is a sufficient territorial link, even in the absence of a formal permanent establishment.

Taxable profits start from the accounting profit, adjusted according to tax rules (depreciation, provisions, deductibility of interest, etc.). Some useful benchmarks:

Tax losses are generally carry-forward indefinitely for mining license holders, subject to anti-abuse rules in case of change of control. No carry-back is possible.

Withholding Tax on Dividends and International Flows

On dividends paid by a Greenlandic company, the withholding tax generally ranges between 36% and 44% depending on the municipality where the shareholder is tax resident. Nevertheless, this withholding is deductible for corporate income tax, so the total charge on distributed profit coincides with the withholding.

Tip:

Greenland has a very limited network of tax treaties, mainly with Denmark, the Faroe Islands, Iceland, and Norway. For beneficiaries resident in these Nordic states, withholding tax on dividends is often reduced to 35%. However, for residents of other countries, the absence of an extensive treaty network requires particularly careful and tailored international tax planning.

Royalties paid to non-residents are subject to taxation in Greenland, and the payer must withhold tax at source; here again, local tax doctrine and texts must be analyzed project by project.

Sectoral Taxation: Mining, Oil, Water, Energy

For oil and gas licenses, the combination of corporate income tax and progressive royalties creates a regime that is both potentially lucrative for the state and complex for operators. Old permits include surplus royalties triggered at certain internal rates of return, while new ones provide for a royalty of 2.5% of revenue, with additional tiers when margins exceed certain thresholds.

For metal mines, a separate scale applies, for example:

In certain configurations, corporate income tax and any dividend withholding tax are taken into account in calculating royalties, which avoids excessive double taxation. However, this is not the case for all licenses (uranium, gemstones notably). Specialized tax advisory support is therefore almost essential for any large-scale mining or energy project.

Working and Residing in Greenland as an Entrepreneur

Creating a business is only useful if you can live and work on site. However, Greenland is not part of the Schengen Area, even though it is linked to Denmark. Residence and work rules are distinct and sometimes confusing for a European accustomed to free movement.

Work and Residence Permits

Most foreigners must obtain a work permit and a residence permit before starting a professional activity. Citizens of Nordic countries (Denmark, Finland, Iceland, Norway, Sweden) are the exception: they can freely reside and work in Greenland.

Attention:

For EU/EEA and Swiss citizens, free movement does not apply to Greenland. A combined work and residence permit is mandatory, even if no visa is required. Applications are processed by the Danish agency SIRI, based on advice from the Greenlandic government (Naalakkersuisut).

The standard scheme is based on three pillars:

1. Concrete job offer from an employer registered in Greenland
2. Compliance with local conditions regarding salary, working hours, holidays, applicable collective agreement
3. Ability to support oneself without recourse to Greenlandic social assistance

Permits are usually issued for a duration of up to two years, aligned with the contract or municipal authorizations for hiring foreign labor. They are tied to a specific employer and position; a change of employment requires a new application.

Good to know:

There is no specific start-up visa for Greenland. The entrepreneur must generally be hired by their own local company, hold a qualified position with market-level compensation, and consult SIRI or a specialized advisor beforehand to secure their immigration strategy.

Specific regimes exist for certain sectors: a health agreement allows for faster processing of applications for medical staff covered by Greenlandic collective agreements, and the mining industry benefits from simplified rules for short-term interventions (up to 90 days).

Towards Permanent Residence

For entrepreneurs planning a long-term settlement, access to permanent residence generally requires:

– continuous legal presence for several years (practically around 5 years)

– a stable financial situation, without reliance on social benefits

– a level of language proficiency (Danish or Greenlandic) and demonstrated integration

– a clean criminal record

Here again, the approach must be anticipatory: type of initial permit, renewals, interruptions of stay abroad, family composition, all these factors influence access to a more stable status.

Managing Local Employment: Labor Law, Costs, and Expectations

Even when starting alone, developing a business in Greenland quickly involves hiring local employees. However, the labor market is both limited (small population, skill shortages in certain areas) and structured by collective agreements inspired by Danish models.

Working Hours, Holidays, Remuneration

Weekly working hours are generally between 37 and 40 hours, spread over five days. The law requires a daily rest period of at least 11 consecutive hours and one day of rest per week, usually Sunday. The maximum working hours, including overtime, must not exceed an average of 48 hours over a reference period of about four months.

Overtime must be compensated, either in time or through enhanced pay, with common practice (via collective agreements) being 150% of the hourly rate for the first extra hours, then 200% for very late hours, weekends, and public holidays.

25

Employees are entitled to a minimum of 25 working days of paid leave per year, accrued at a rate of approximately 2.08 days per month worked.

Regarding salaries, there is no single legal minimum wage; amounts are set by collective bargaining and by sector. Available data, however, suggests indicative levels: around 100 DKK per hour for unskilled positions, 20% more for skilled workers. Technical or managerial profiles (doctors, managers, engineers, developers) range from 400,000 to over 1.2 million DKK gross per year.

Labor Costs and Social Contributions

The Greenlandic social system is mainly based on personal income tax (rates between approximately 36% and 44% depending on the municipality). Employers, meanwhile, pay a labor market contribution (AMA), around 1.1% of gross remuneration according to the most recent figures. They must also insure their employees against occupational accidents, with the cost varying by sector.

Good to know:

For Greenlandic employees, the system differs from most European countries: there are no equivalent social security contributions. The primary funding for social protections comes from income tax, which is withheld directly at source.

For certain foreign workers assigned to mining or infrastructure projects, a specific flat tax regime of 35% may apply, without deductions. This regime aims to simplify the tax treatment of short-term high-remuneration assignments, but it is crucial to verify on a case-by-case basis when structuring contracts.

Labor Relations and Company Culture

Beyond the numbers, the expatriate must integrate the local work culture. It combines:

– a certain respect for hierarchy and experience, especially in large public organizations

– a strong expectation of collaboration and consultation within teams

– a decision-making pace that is sometimes slower than in international business hubs, with a search for consensus

– great importance placed on stability, reliability, and keeping commitments

In daily interactions, communication can seem both direct in substance and cautious in form: open disagreements are often avoided, silence and non-verbal language play a significant role, and it is sometimes preferred to let time take its course rather than force a decision.

Logistics, Cost of Living, and Infrastructure: What the Entrepreneur Must Factor In

Developing a business in Greenland also means dealing with high operating costs and constraining infrastructure.

Real Estate, Energy, Connectivity: A Demanding Equation

The real estate market, especially in Nuuk, is tight. Limited supply and population growth lead to high rents and purchase prices comparable to some European capitals, while construction costs themselves are very high. For an entrepreneur, this often means:

– expensive offices that are not always easy to find

– the need to plan far in advance for the relocation of key staff

– the potential advantage of opting for flexible solutions (coworking, shared spaces with partners)

Energy costs (heating, electricity, water) remain significant, even though a large part of electricity comes from hydropower. It is not uncommon for utility bills to weigh heavily on a small structure. An example monthly budget for a homeowner in Nuuk showed nearly 2,000 to 4,000 DKK per month for basic charges alone, plus internet and telecoms.

90

Over 90% of Greenland’s population has internet access, thanks notably to the Greenland Connect submarine cable.

Transport of Goods and People

The absence of roads between towns has a direct impact on any business model dependent on physical logistics. Shipments of goods rely on maritime transport (Royal Arctic Line, partnerships with Eimskip to Iceland, the Faroe Islands, Scandinavia) and air freight, which is much more expensive.

For imports, one must contend with a system of specific duties on certain products (alcohol, sugary drinks, tobacco, vehicles, perfumes, etc.) and administrative procedures managed by the Greenlandic tax administration. The majority of cargo arrives via Denmark, where duties are often paid before maritime transit.

Transport in Greenland

Overview of the means of transport for people, essential for mobility and economic activities in the territory.

Air Links

Dependence on Air Greenland flights, seasonal connections via Iceland, and future reorganizations around the new international airports in Nuuk and Ilulissat.

Transport to Remote Areas

Access via helicopter, coastal boats, snowmobiles, or dog sleds.

– high travel costs for staff, client, or partner movements

– the need to align project timelines with weather constraints and flight availability

– the importance of remote work solutions, despite bandwidth limitations

Environmental Regulations and Respect for Local Customs

The Greenlandic environment is both a powerful marketing asset (Arctic, preserved nature) and a demanding regulatory framework. Hunting, fishing, land use, and tourism activities are governed by strict rules, both to protect ecosystems and to preserve traditional ways of life.

For a foreign entrepreneur, it is crucial to: understand local laws, adapt your business model, develop a network, and master the language of the host country.

– comply with legislation on wildlife, flora, and protected areas (e.g., CITES for certain animal products)

– integrate responsible practices regarding waste, emissions, and respect for cultural sites

– consult local communities when a project affects their resources or territory

An approach perceived as “extractive” or disconnected from cultural realities risks encountering strong social resistance, even if technically compliant with laws.

Practical Strategies for Expatriates: Limiting Risks, Maximizing Chances

Faced with the apparent complexity of the Greenlandic environment, several strategies allow an expatriate entrepreneur to progress pragmatically.

Rely on Local Partners and Service Providers

From the early stages (choosing the legal form, registration, obtaining CVR and GER numbers, opening bank accounts, registering as an employer), it is recommended to work with:

– a law firm or business creation advisor already familiar with online tools (virk.dk, businessingreenland.gl)

– an accountant proficient in both Nordic accounting principles and Greenlandic tax specifics

– possibly, an “Employer of Record” service provider to quickly hire local staff without immediately creating an entity, although this model is more common in other countries than as a long-term solution in Greenland

Traditional banks like GrønlandsBANKEN or BankNordik require complete KYC/AML files (articles of association, registration certificates, proof of address, identity of directors, business plan, source of funds) and may require physical presence for account opening.

Anticipate Tax and Compliance Issues

The relative simplicity of certain tax parameters (single CIT rate, no VAT) should not mask the complexity of practice: withholding taxes on dividends and royalties, specific royalties for natural resources, transfer pricing rules, financial reporting obligations to the Tax Agency and the business register.

Tip:

It is wise to plan your actions in advance to optimize your time and resources, anticipating necessary steps and foreseeing potential obstacles.

– model several scenarios for profit distribution, reinvestment, and cash repatriation to the parent company

– carefully document all intra-group transactions regarding transfer pricing requirements (documentation to be kept for at least five years)

– choose the accounting framework (local standards or IFRS) based on financing needs and transparency towards international investors

Filing deadlines (e.g., CIT return due by May 1 of the year following the fiscal year) and tax payment deadlines (6% surcharge on tax due if the installment has not been optimized) must be integrated into the cash flow calendar.

Manage Immigration and Recruitment Carefully

For entrepreneurs as well as their foreign collaborators, the issue of residence and work permits conditions everything else. Some good practices:

Good to know:

Allow processing times of 3 to 5 months for standard applications, excluding specific cases like health agreements, limited mining fast-track, or short missions under the “installer rule.” Before filing, verify that the local employer (subsidiary or branch) is registered and authorized to hire. Key profiles should be placed in full-time positions, with conditions comparable to those of nationals to avoid refusals due to social dumping or insufficient qualifications. Finally, family reunification applications (spouse, children) must be handled separately to ensure stability for the core management team.

For local recruitments, the scarcity of certain profiles requires a long-term approach: partnerships with training institutions (University of Nuuk, Tech College in Sisimiut), internal upskilling programs, and leveraging Danish or Nordic talent willing to relocate.

Build Cultural and Relational Legitimacy

In Greenland more than elsewhere, entrepreneurial success rests not only on a good business model. Expatriates who integrate sustainably are those who:

– respect the local language and codes (learn a few phrases in Greenlandic, understand traditional celebrations like Kaffemik or National Day)

– participate in community life (support cultural or sporting events, engage in local projects)

– build trusting relationships with public partners (municipalities, development agencies, large public companies) by prioritizing transparency and consultation

The hours spent listening, adapting projects to residents’ expectations, and explaining the long-term impacts of an activity may seem “unproductive” at first, but they often constitute the best investment to avoid later political or social blockages.

In Conclusion: A Demanding Market but with High Potential for Determined Expatriates

Starting a business in Greenland is not an adventure for those seeking the path of least resistance. Between the extreme climate, high cost of living, hybrid legal system, limited infrastructure, and very restricted domestic market, the obstacles are real. Common mistakes by foreigners – underestimating administrative delays, ignoring immigration rules, poorly grasping local culture, neglecting tax obligations – can be costly.

But for expatriates ready to commit long-term, build balanced partnerships, and design projects truly adapted to the local ecosystem, Greenland offers a rare combination:

Advantages and Opportunities in Greenland

An overview of the main assets and promising sectors for investors and professionals in Greenland.

Stable Political Environment

A Nordic-inspired rule of law ensuring security and predictability for economic activities.

Economic Diversification

Strategy open to innovation in mining, tourism, energy, water, and digital.

Need for Skills and Investment

Urgent demand in high-value-added sectors, creating targeted opportunities.

Clear Tax Framework

No generalized VAT and a single corporate income tax, simplifying procedures.

In this context, the expatriate who carefully prepares their dossier, surrounds themselves with local advisors, respects environmental and social constraints, and builds an offering oriented towards export or essential B2B services, can turn the harshness of the Arctic into a genuine competitive advantage. Greenland is not an easy El Dorado, but it can become, for a few well-informed and persistent entrepreneurs, a strategic playing field at the crossroads of the Arctic, energy, and digital challenges of the 21st century.

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.

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