Denmark Establishment Saving Account Guide (Iværksætterkonto, Start-Up Account)

Overview of the Two Schemes

Both schemes allow employees to save money in a dedicated bank account for the purpose of starting a business. Contributions are tax-deductible, and withdrawals are tax-free if used for qualifying business expenses. If you do not start a business, you must repay the tax relief with interest.

Establishment saving account (etableringskonto): For employees who do not pay top-bracket tax (topskat). The tax relief on contributions is approximately 27%. When you withdraw money to start your business, you also get tax relief on qualifying expenses and investments at the same rate.

Business start-up account (iværksætterkonto): For employees who pay top-bracket tax (topskat). The tax relief on contributions is approximately 52%. However, you do not get additional tax relief when you withdraw money for business expenses — the higher upfront relief is intended to cover this.

You can open either account at most Danish banks. You are free to move the account from one bank to another. Contact your bank for practical details on opening and managing the account. For more on starting your business once you are ready, see our Starting a Business Guide →.

Contribution Limits and Rules

The contribution rules are the same for both schemes. Understanding the limits is essential for maximising the tax benefit while staying compliant.

60% of net salary per year: You can deposit up to 60% of your net salary (after A-tax and AM-bidrag) into the account each year. The deposit must be between DKK 5,000 and DKK 250,000 per year.

Examples:

• Net salary of DKK 200,000 → max deposit of DKK 200,000 (60% of 200,000 = 120,000, but the upper range allows up to net salary if under 250,000)
• Net salary of DKK 300,000 → max deposit of DKK 250,000 (the absolute upper limit)
• Net salary of DKK 800,000 → max deposit of DKK 480,000 (60% of 800,000)

Contribution period: Contributions for a given income year must be made within a specific window. For 2025 tax relief, contributions must be made between 16 May 2025 and 15 May 2026. This deadline is strict — no exceptions are made for holidays or closing days. Plan your deposits well in advance.

Eligibility period: You can make tax-relieved contributions in the income year you establish your business and the 4 subsequent income years. After that, no further tax relief is available on new contributions (though existing funds can still be withdrawn).

Qualifying for Business Start-Up

To use the funds from your account for starting a business, SKAT requires that you meet two conditions demonstrating that you have genuinely started a business:

Condition 1 — Minimum investment: You must invest at least DKK 109,900 in 2026 (DKK 104,800 in 2025) in your business. This investment can include depreciable assets (buildings, machinery), operating expenses (salary, rent, marketing), research and testing costs, or shares in a company you establish (ApS/A/S).

Condition 2 — Active involvement: You or your spouse must put significant effort into the daily running of the business. As a rule of thumb, this means at least 12 hours per week (50 hours per month) of active involvement. The effort must be genuine and ongoing — passive ownership does not qualify.

If you meet both conditions, SKAT considers that you have started a business for the purposes of the scheme. You can then withdraw funds from your account to cover qualifying business expenses. For more on what counts as starting a business, see our Starting a Business Guide →.

Withdrawing Funds

When you are ready to start your business, you can withdraw funds from your account. The process and tax treatment differ depending on which scheme you use.

What the money can be used for: Qualifying expenses include:

• Depreciable assets — Buildings, machinery, equipment, vehicles, IT hardware used in the business.
• Operating expenses — Salary to employees, rent for business premises, marketing costs, professional fees, and other tax-deductible operating expenses.
• Research and testing — Costs related to product development, testing, prototypes, and market research.
• Shares in a company — Purchase of shares in an ApS or A/S to establish a business in corporate form (you must be actively involved in the company).

How to withdraw:

1. Complete form 02.007 (Notice of acquisition of assets in relation to withdrawal from business establishment account) — available in Danish on skat.dk.
2. Submit the completed form to your bank.
3. The bank processes the withdrawal from your account.

Deadline for withdrawal: You must withdraw the contributions no later than 9 years after the end of the income year when the business was started, or before the end of the income year in which you become entitled to the state pension (folkepension) — whichever comes first.

Tax Treatment on Withdrawal

The tax treatment when withdrawing depends on which scheme you use:

Establishment saving account (27% scheme): When you withdraw funds to pay for qualifying business expenses, you are entitled to additional tax relief on the expenses or investments you make with the withdrawn money. The actual tax relief depends on when the contributions were made. You report the qualifying expenses in your tax return (box 57) to claim this relief.

Business start-up account (52% scheme): When you withdraw funds, you get no additional tax relief on the expenses or investments. The higher upfront tax relief (52% vs 27%) is intended to compensate for this. The money withdrawn is simply not taxable as income — it is a return of your own savings that were already tax-relieved.

Reporting: You obtain your tax relief by entering the total contributions in box 57 of your tax assessment notice (årsopgørelse) or your extended tax return. The tax relief is calculated automatically by SKAT based on your total income and tax bracket.

If You Do Not Start a Business

If you change your mind and do not start a business, or if you withdraw funds for non-business purposes, you must repay the tax relief with additional penalties.

Establishment saving account: You are liable to pay supplementary tax on the contributions you have not used. The supplementary tax on the saved amounts is increased by 3% for each year (5% per year for contributions made before 2002) since the year the contribution was made. This means the longer the money stayed in the account, the more you owe.

Business start-up account: You are liable to pay 52.5% tax (60% on contributions made in 2009) on the original contributions, plus 3% supplementary tax for each year since the year the contribution was made. The penalty is significantly higher because the upfront tax relief was larger.

In both cases, the supplementary tax is calculated per year and added to your tax bill. If you are considering closing the account without starting a business, contact SKAT or a revisor to understand the exact amount you will owe.

FAQs

What is the difference between an establishment saving account and a business start-up account?

The establishment saving account (etableringskonto) is for employees who do not pay top-bracket tax — tax relief of ~27% on contributions, plus additional relief on qualifying business expenses on withdrawal. The business start-up account (iværksætterkonto) is for employees who pay top-bracket tax — higher upfront relief of ~52% on contributions, but no additional relief on expenses on withdrawal.

How much can I save per year in an establishment saving account?

You can deposit between DKK 5,000 and DKK 250,000 per year, up to a maximum of 60% of your net salary. Contributions must be made within the annual window (16 May to 15 May of the following year for the current income year).

What happens to my account if I do not start a business?

You must repay the tax relief with a supplementary tax of 3% per year (establishment account) or pay 52.5% tax plus 3% per year (start-up account) on the contributions. The supplementary tax is calculated from the year each contribution was made.

Can I use the money to buy shares in an existing company?

Yes — you can use the funds to buy shares in an ApS or A/S in order to establish a business in corporate form. However, you must be actively involved in the company (at least 12 hours/week). Passive investment in an existing company where you do not work does not qualify.

What is the deadline for withdrawing funds after starting my business?

You must withdraw the contributions no later than 9 years after the end of the income year in which the business was started, or before you reach state pension age — whichever comes first. Unused amounts may be subject to supplementary tax.