← Guides / Denmark

Denmark Au Pair and Domestic Help Tax Guide

Danish tax rules for au pairs, DOMESTIC help (hjemmeservice), and household employees — employer registration, A-skat, AM-bidrag, the home service deduction, and au pair taxation — all amounts in DKK.

Hiring someone to work in your home in Denmark — whether as an au pair, a domestic helper (hjemmeservice), a cleaner (rengøringshjælp), a nanny (barnepige), or an elderly care assistant — triggers employer obligations similar to hiring a regular employee. You must register as a private employer with SKAT (Skattestyrelsen), withhold A-skat and AM-bidrag from the worker's pay, report via eIndkomst, and pay the employer AM-bidrag. However, two important reliefs exist: the hjemmeservice deduction (a tax credit for hiring domestic help in your home) applies to certain types of household work, and the au pair scheme has specific rules that differ from regular employment. Failure to comply can result in significant penalties — SKAT actively audits private employers through cross-checks of the eIndkomst system and the RUT register (for foreign workers). This guide covers employer registration for private households, A-skat and AM-bidrag for domestic workers, the hjemmeservice deduction (rates and eligible work), au pair rules (cultural exchange vs employment, minimum pay, tax treatment), the nanny and elderly care rules, and compliance obligations. For related topics, see our Hiring Employees Guide →, Personal Tax Guide →, Tax Card Guide →, and Tax Deductions Guide →.

Hiring Domestic Help — Employer Obligations

Registering as a private employer: If you hire someone to work in your home, you must register as an employer (arbejdsgiver) with SKAT. Use MitID Erhverv to register on virk.dk (or the employer registration portal on TastSelv Erhverv). You do not need a CVR number as a private employer — you register under your personal CPR number as a private employer (privat arbejdsgiver). Once registered, you will receive an employer account (moderkonto) for paying A-skat and AM-bidrag. The registration is free and takes approximately 10–15 minutes online.

Salary, A-skat, and AM-bidrag: As a private employer, you must: (a) agree on a gross salary with the worker, (b) deduct A-skat (income tax) at the rate shown on the worker's tax card (if the worker does not have a Danish tax card, deduct at the default 55% rate — the worker should apply for a tax card immediately), (c) deduct AM-bidrag (labour market contribution) at 8% of the gross salary, (d) pay the employer AM-bidrag at approximately 1,289 DKK per month per employee (2026 level, indexed annually — this replaces the old employer A-skat rate for private employers), and (e) report the salary and deductions via eIndkomst by the 10th of the following month. The net salary (after A-skat and AM-bidrag) is paid to the worker. The A-skat and AM-bidrag deducted, plus the employer AM-bidrag, are paid to SKAT through your employer account. For detailed guidance on A-skat and AM-bidrag, see our Hiring Employees Guide →.

Monthly reporting (eIndkomst): Each month, report the worker's salary, A-skat withheld, and AM-bidrag via eIndkomst. The deadline is the 10th of the following month. Late reporting incurs penalties. If the worker works only occasionally (e.g., a cleaner once a week), report each payment as it is made — do not aggregate multiple months. For irregular domestic help (e.g., a student who babysits occasionally), the same rules apply if the total annual payment exceeds ~6,000 DKK — below this threshold, the worker may treat it as tax-free occasional income (not subject to A-skat), but you as the employer should still check the rules carefully. For amounts under 6,000 DKK per year, the worker reports the income as B-income on their tax return.

Hjemmeservice Deduction (Home Service Tax Credit)

What it is: The hjemmeservice deduction (also called the servicefradrag or håndværkerfradrag until 2022, now replaced by the current scheme) gives you a tax credit for hiring registered businesses or approved individuals to perform domestic work in your home. The credit is calculated at approximately 26% of the labour cost (not materials), up to a maximum credit of ~6,000 DKK per person per year (2026 level). The credit is non-refundable — it can reduce your tax to zero but cannot generate a refund.

Eligible work: The credit covers: cleaning (general cleaning, window cleaning, carpet cleaning), laundry and ironing, gardening (lawn mowing, hedge trimming, weeding — but not tree felling or major landscaping), snow removal, childcare in the home (not daycare centres), elderly care and personal care in the home (bathing, dressing, meals — must be provided by a registered care provider), and minor home maintenance and repairs (painting, minor plumbing, minor electrical work — but not major renovations or capital improvements). The work must be performed in your primary residence (helårsbolig) — not in a summer house or rental property. The provider must be a registered business (with a CVR number) or a registered private employer who reports the income properly.

How to claim: When you hire a registered business (e.g., a cleaning company, a gardening service), the company will ask for your CPR number and report the work to SKAT through the hjemmeservice portal. The credit is automatically pre-filled on your forskudsopgørelse and årsopgørelse. If you hire a private individual (e.g., a neighbour's teenage child for gardening), you must register as a private employer, pay the individual properly (with A-skat and AM-bidrag), and then the hjemmeservice credit is calculated automatically when the individual's income is reported via eIndkomst. The credit applies to the labour cost you paid (including the taxes you paid as the employer).

Interaction with au pair rules: You cannot claim the hjemmeservice deduction for payments to an au pair. The au pair arrangement is a cultural exchange, not a domestic service contract, and the hjemmeservice rules specifically exclude au pair payments. However, you can claim the hjemmeservice deduction for a separate cleaner or gardener, even if you also host an au pair.

Au Pair Rules

Legal framework: The au pair scheme in Denmark is governed by the Au Pair Act (Au Pair-loven) and implemented by the Danish Agency for International Recruitment and Integration (SIRI). The scheme is intended as a cultural exchange — not an employment relationship. The au pair lives with the host family, receives free board and lodging, and works up to 30 hours per week (plus occasional babysitting up to 5 additional hours per week). In return, the host family pays pocket money (lommepenge), which is set by law at a minimum of approximately 4,800 DKK per month (2026 level, adjusted annually).

Tax treatment of au pair payments: The pocket money paid to an au pair is taxable income for the au pair. The host family is the employer for tax purposes and must: (a) register as a private employer with SKAT, (b) deduct A-skat from the pocket money using the au pair's tax card, (c) deduct AM-bidrag at 8% from the pocket money, and (d) report the payment via eIndkomst under code 102 (au pair). The net amount after deductions is paid to the au pair. The host family also pays the employer AM-bidrag at approximately 1,289 DKK/month. The au pair's free board and lodging (the value of the room and meals) is not taxable for the au pair and not deductible for the host family. For more on employer registration, see our Hiring Employees Guide →.

Au pair's tax position: The au pair is a Danish tax resident if they stay in Denmark for more than 6 months (or have a home available immediately). Most au pair stays are 12–24 months, so the au pair becomes a Danish tax resident from the start of the stay (day 1 if the home is available). The au pair receives a CPR number and a tax card from SKAT. The pocket money is their only Danish-source income — it is taxed at the standard progressive rates (municipal tax ~25% + state tax ~12% if income exceeds ~600,000 DKK — the pocket money is well below this, so effectively only municipal tax applies). Most au pairs pay very little or no Danish tax because the personal allowance (~48,000 DKK) covers a significant portion of the pocket money (~57,600 DKK/year). If the au pair earns extra income outside the au pair arrangement (e.g., a second job — which requires SIRI approval), that income is also taxable.

Host family obligations: In addition to tax obligations, the host family must: provide a written au pair agreement (værtskabskontrakt) approved by SIRI, provide the au pair with a private room and full board, pay the minimum pocket money, give the au pair time off (1 day per week + 2 days per month), and register the au pair with the CPR system. The host family cannot reclaim the pocket money or the employer AM-bidrag through any tax credit. The host family can, however, deduct the employer AM-bidrag as a personal deduction on their tax return (field 474).

Nanny and Elderly Care Rules

Nanny in the home: Hiring a nanny to care for your children in your home follows the general private employer rules — register with SKAT, withhold A-skat and AM-bidrag, and report via eIndkomst. If the nanny works fewer than 30 hours per week and lives outside your home, they are a regular employee. There is no special "nanny exemption" — all the standard employment rules apply. The hjemmeservice deduction (see above) applies to childcare in the home, giving you a ~26% tax credit on the labour cost (up to ~6,000 DKK per year). This is a significant benefit — for a nanny costing 120,000 DKK/year in salary, you can claim up to ~6,000 DKK in tax credit (capped at the maximum).

Elderly care in the home: Hiring someone to provide personal care for an elderly relative in your home (or in their home) follows the same employer rules. The hjemmeservice deduction applies to elderly care performed by a registered provider. If you hire a care worker directly, the credit applies only if you register as a private employer and the worker's income is properly reported. The maximum credit is the same ~6,000 DKK per person per year. If the elderly person is the one receiving care and paying for it, they can claim the credit on their own tax return. The care must be provided in a primary residence — not in a nursing home or care facility.

Compliance and Penalties

SKAT audits of private employers: SKAT cross-references eIndkomst reports with the population register, bank account records, and the RUT register. If you hire an au pair or domestic worker but do not report their income via eIndkomst, SKAT may discover the discrepancy through: (a) the worker's own tax return (if they report the income as B-income when it should be A-income), (b) a neighbour or former employee reporting you to SKAT's tip-off line, or (c) a routine check of the RUT register (foreign domestic workers must register in RUT if they are non-EU nationals providing services). Penalties for failing to register as a private employer: up to 5,000 DKK for late registration. Penalties for failing to report and pay A-skat/AM-bidrag: up to 100% of the unpaid amount plus interest at approximately 3.5% annually.

Au pair compliance: Host families who fail to report au pair payments face the same penalties. In addition, SIRI may revoke the au pair's residence permit if they discover the host family is not complying with tax obligations — this can result in the au pair being deported and the host family being banned from hosting future au pairs. Always register and report correctly from the start.

Related Guides