Denmark scraps startup tax, lifts stock income limits

Denmark has reached a political deal eliminating the entrepreneur tax and easing stock income tax, aiming to make the country a world-class hub for startups. The agreement, supported by several parties, raises the tax-free threshold for stock income to 80,000 kroner, potentially granting investors an annual benefit of 2,840 kroner. The initiative, costing 160 million kroner per year, also doubles the investment limit for stock savings accounts to 160,000 kroner. Additionally, the deal includes 46 measures to facilitate entrepreneurship, such as halving the capital requirement for forming limited liability companies to 20,000 kroner and embedding entrepreneurial education in schools. Despite critiques that the policy favors the wealthy, Industry Minister Morten Bødskov defends it as essential for substantial capital investment in the nation’s economic strengths.