Denmark faces rising tax debt from citizens moving abroad

The Danish Debt Agency (Gældsstyrelsen) is facing a significant challenge as the number of individuals moving abroad with debt to the Danish state has risen from 120,000 in 2016 to approximately 200,000 by the end of 2025. The total debt has grown to 20.1 billion DKK, including 5.9 billion DKK in unpaid interest.

Of the 200,000 debtors, the agency lacks contact information for 78,000 individuals, hindering collection efforts. The most common locations for these debtors include Poland (17,000), Romania (16,000), Sweden (10,000), Lithuania (9,000), and Germany (8,000). The National Audit Office (Rigsrevisionen) has launched an investigation into the agency's collection effectiveness, with results expected in early 2027.

Separately, organizations including Danes Worldwide, Dansk Industri, and Djøf are calling for the Danish government to better consider the impact of legislation on citizens living abroad. They argue that current laws, such as new social assistance rules and digital ID systems, often fail to account for the unique situations of Danes residing outside the country, creating unnecessary uncertainty for families and professionals.