Taxes in Greenland work under a system the territory runs itself, separate from Denmark’s: personal income is taxed at a combined 42% to 44% depending on the municipality, companies pay a flat 25%, there is no VAT, and returns are due May 1 of the year after the income year.1Nordic cooperation. Taxation in Greenland Revenue stays in Greenland and funds local public services, and the Government of Greenland sets the rates, defines deductions, and negotiates its own tax treaties.
Who Owes Greenlandic Tax
You are a full tax resident if you keep a permanent home in Greenland or stay for more than 183 days. Full residency means Greenland taxes your worldwide income.1Nordic cooperation. Taxation in Greenland
Stay under six months and you have limited tax liability: only income actually earned in Greenland is taxed. There is also a short-stay carve-out. If your visit does not exceed 14 consecutive days and your employer is not based in Greenland, you owe no Greenlandic tax at all.2Nordisk eTax. Greenland – General Information on Income Tax in Greenland
Personal Income Tax Rates
Personal income tax is built from three layers: a 10% national tax, a 6% joint municipal tax, and a local municipal tax set by each of the five municipalities. Local rates run between 26% and 28%, producing combined rates of 42% to 44%.2Nordisk eTax. Greenland – General Information on Income Tax in Greenland
- Kommune Kujalleq: 43%
- Kommuneqarfik Sermersooq: 42%
- Qeqqata Kommunia: 42%
- Kommune Qeqertalik: 42%
- Avannaata Kommunia: 44%
If you live in an area outside any municipality, you pay a special national tax of 26% plus the 10% national rate, for a combined 36%.2Nordisk eTax. Greenland – General Information on Income Tax in Greenland
Personal Allowance
Everyone gets a standard personal allowance of DKK 48,000 per year before income is taxed. Fully tax-liable residents get an extra DKK 10,000, for a total of DKK 58,000. These figures have held steady for several years. On a DKK 200,000 salary in Sermersooq, the first DKK 58,000 is untaxed, so the effective rate sits well below the headline 42%.
What Counts as Taxable Income
Greenland uses a global income approach. Wages, business profits, and investment income are generally pooled and taxed at the same combined rate. Interest and other capital income are taxed alongside labor income, with a small annual exemption. Dividends paid to an individual are taxed at the combined municipal rate of the place where the distributing company is located.3Grønlands Statistik. Taxation System
Capital gains on most assets are not taxable for individuals. That is a real departure from most jurisdictions. Two exceptions apply: derivatives, and debentures with a nominal interest rate below 2% per year. Gains on those instruments are taxed as ordinary income at the standard combined rate.
Mandatory Pension Contribution
Employees with full tax liability must contribute 11% of gross salary to a Greenlandic pension fund. The obligation has applied since 2025 and uses the same income base as income tax. Limited taxpayers staying under six months are not covered.
Corporate Tax
Companies pay a flat 25% on taxable income, regardless of whether they are Greenlandic or foreign. Non-resident companies are taxed on profits from a permanent establishment in Greenland or from natural resource exploration and extraction.
Taxable income starts from accounting profit, adjusted under Greenlandic tax rules. Greenlandic companies are taxed on worldwide income, with one exclusion: income from real estate located outside Greenland. Each entity files its own return; tax consolidation between related companies is generally not available.
Operating assets such as machinery depreciate at 30% per year on a declining-balance basis. Buildings and permanent installations depreciate at 5% per year, straight-line.
Tax losses can be carried forward for ten years, up from five since January 2024. To keep the carryforward, you must file a specification of the losses each year by the return deadline and retain all related accounting records until at least two years after the loss is used.
Companies extracting mineral resources face extra obligations beyond the 25% rate, including surplus royalties.
Withholding Tax on Payments Abroad
When a Greenlandic company pays dividends, royalties, or interest to a non-resident, withholding tax applies at the source. The rates run high by international standards:
- Dividends: 36% to 44%, matching the combined municipal tax rate where the paying company sits. The rate drops to 24% if the company elects into the special “chapter 3b” regime. Treaty relief may reduce it further.
- Royalties: 30%, reducible under an applicable double taxation treaty.
- Interest: 25%, but only when the recipient is taxed at less than 15% in their home country or no treaty is in force. This interest withholding was introduced in 2023.
A 44% dividend levy at the source catches many foreign investors off guard, and reclaiming any portion requires either treaty relief or an exemption under Greenlandic law.4GrønlandsBANKEN. Tax Rules in Greenland – Section: Dividend Tax and Reclaiming Withholding Tax Greenland has double taxation treaties with a limited number of countries, so check whether one covers your home jurisdiction before receiving cross-border payments.
Employer Contributions
Employers pay a social security contribution called the AMA on top of withholding income tax from employee wages. It is levied on the employer, not the employee, and calculated as a percentage of total wages and salaries, including fringe benefits. The rate rose to 2.1% for the 2025 income year, up from 1.1%.
No VAT, but Import Duties
Greenland does not charge a value-added tax or general sales tax. That simplifies compliance but does not mean indirect taxation is absent. The territory relies on customs duties and excise taxes on imported goods. Alcohol, tobacco, vehicles, and certain food products carry specific duties, calculated on the CIF (cost, insurance, and freight) value at the border. For a country that imports most of its consumer goods, those duties add meaningfully to shelf prices.
Travelers entering Greenland can bring limited quantities duty-free:5Greenland Airports. Customs and Tax Regulations in Greenland
- Spirits over 22%: 1 liter
- Fortified wine under 22%: 2 liters
- Table wine up to 15%: 2.25 liters
- Beer: 2 liters
- Cigarettes: 200 pieces
- Cigars: 50 pieces
- Smoking tobacco: 250 grams
Anything over these limits is dutiable at the applicable rate.
Gifts
Gifts are generally treated as ordinary taxable income for the recipient, taxed at the standard combined 42% to 44%. One important exemption applies: gifts between close family members — spouses, children, stepchildren and their descendants, parents, stepparents, and grandparents — are completely tax-free.
Filing Deadlines and Penalties
The tax year runs January 1 to December 31. Individuals with full or limited tax liability must file by May 1 of the following year. Your employer reports income data to the Tax Agency, and you can review or amend your return through Sullissivik, Greenland’s online citizen-services portal.1Nordic cooperation. Taxation in Greenland
Corporations on the calendar year face the same May 1 deadline for paper filings, extended to June 15 for filings through the official web portal. Companies with a non-standard fiscal year must file within four months of year-end.
The final individual assessment goes out by the end of August. Residual tax is payable in three installments due September 20, October 20, and November 20, and carries an 8% surcharge. Overpayments are refunded before September 1 with a 2% surcharge in your favor. If you owe money to public authorities, any refund is offset against that debt first.
Miss the May 1 filing deadline and the penalty is DKK 200 per day, capped at DKK 2,000. The cap keeps the direct penalty modest; the 8% surcharge on any resulting underpayment is the more meaningful cost. Foreigners taxed under Greenland’s special expat regime, and non-residents whose only Greenlandic tax is royalty withholding, do not have to file a return at all.