Denmark: Short-term Work Permit Exemption for Intra-Company Transferees to Commence November 17

• Requirement for a Danish affiliate company. The foreign national must be an employee of a company that has an affiliated entity registered in Denmark. During their work visa-exempt stay, the foreign national must be performing work for the Danish-registered company – which itself must have at least 50 employees (this figure can include part-time employees, but not temporary workers).
• Exceptions. The work permit exemption will not apply to employees in certain industries, including (among others) agriculture, construction, hospitality, cleaning, road and freight, horticulture, and forestry, unless the applicant is performing mid- to senior-level management duties in their role. Update – November 16, 2023: Additionally, individuals will not be able to conduct work at third-party or client sites, unless it is to assist representatives from the Danish-registered company in their work with their clients (for instance, client meetings).

• Short-term work mobility. Employers will now have greater flexibility to move talent to Denmark for short-term work purposes. Previously, similar stays in Denmark for this group of foreign nationals would have required a work permit.
• Schengen stay calculations. Each work-permit exempt stay will be counted against an individual’s allocation of days allowed in a Schengen Area country (90 days within a 180-day period). Accordingly, employers and employees will need to be diligent in accurately accounting for the period of time spent in Denmark.
• Update – November 16, 2023: Eligibility checks at borders. Authorities will conduct checks at border crossings in order to determine whether a person is eligible to enter under the work permit exempt regime. Where relevant, authorities will verify the status of an individual’s Schengen Area visa.
• Assignment letters. As employees must be working for a registered affiliate company of their employer (effectively, engaging in intra-company work), employers may want to provide employees who use this scheme with an assignment letter clearly stipulating their work role. This will assist border authorities in confirming that the employee is entering Denmark under the terms of the permit exemption regime (as opposed to, for instance, under a business travel arrangement).
• Affiliate relationship. Where the affiliate relationship between the employee’s company and the Danish-registered company is not self-evident (for instance, because the names of the two companies are distinct), employers should provide employees who use this scheme with documentation (including in any assignment letter) proving the affiliate relationship. Employers may also want to provide evidence of the Danish-registered company’s number of employees.

• General work permit exemption regime. Denmark currently provides a work permit exemption only for specific circumstances (for instance, foreign diplomats, guest teachers, artists, board members, or individuals on special work assignments). The upcoming policy change represents a shift towards a more ‘general’ work permit exemption policy.
• Attractive business destination. Through these changes, Denmark is seeking to make itself a more attractive business destination.

At this stage, Denmark is unlikely to further amend its work visa and work permit immigration pathways. Fragomen will report on relevant developments.