Tax in Greenland

Who is the tax authority?

Skattestyrelsen Greenland (aka.gl) is the tax agency of the Naalakkersuisut, the Government of Greenland. It administers personal income tax, corporate income tax, and excise and import duties under Greenlandic legislation.

The primary statute is the Greenlandic Income Tax Act (Landstingslov om indkomstskat). Greenland has its own parliament — the Inatsisartut — which passes tax legislation independently of the Danish Folketing. The Kingdom of Denmark retains authority only over foreign affairs, defence, and constitutional matters.

Professional oversight: FSR — danske revisorer and the Greenland Audit Authority credential registered tax professionals and auditors operating in Greenland.

What is the tax year and when are returns due?

Greenland's tax year is the calendar year (1 January to 31 December). Personal annual returns are generally due 1 May following the tax year. Corporate annual returns fall due 30 June. PAYE-equivalent withholding is deducted monthly from employee wages.

Who counts as a Greenlandic tax resident?

An individual is a Greenlandic tax resident if they maintain habitual residence in Greenland or are physically present for 183 or more days in a calendar year. Residents pay tax on worldwide income. Non-residents pay tax only on Greenland-source income.

Greenland and Denmark are distinct tax jurisdictions. Moving between Greenland and mainland Denmark involves a residence change — Danish residency rules under Kildeskatteloven do not automatically extend to Greenland, and vice versa. Nordic Tax Convention tie-breaker rules apply where both a Nordic jurisdiction and Greenland claim residency.

What are the personal income tax rates?

Greenland's personal income tax combines a state component and a municipal (kommune) component. The combined effective rate ranges from approximately 36 percent at lower-to-mid income levels to approximately 44 percent at higher incomes, depending on the taxpayer's municipality.

Personal allowances and Greenlandic-specific deductions apply. Municipal rates vary by kommune and are set annually by each local government. The state component is set centrally by the Inatsisartut.

Specific Greenlandic allowances and deductions reduce effective rates at lower income bands. There is no AM-bidrag (labour-market contribution) equivalent in Greenland — the two-component structure (state + municipal) is the full liability, unlike Denmark's multi-layer architecture.

How does corporate tax work?

Greenland's corporate income tax (CIT) applies at rates that depend on business sector. The standard rate is approximately 30 percent. Mineral extraction and hydrocarbon activities fall under a separate framework with higher effective rates and royalty obligations.

Withholding tax on non-resident dividends is generally 36 percent absent treaty relief. Loss carry-forward rules apply under the Greenlandic Income Tax Act. Pillar Two global minimum tax does not apply directly to Greenland — most Greenlandic businesses are well below the EUR 750 million consolidated revenue threshold, and Greenland is not an EU member required to implement the EU Minimum Taxation Directive.

Is there VAT in Greenland?

Greenland has no general Value Added Tax. This is one of its most commercially distinctive features — the EU VAT Directive has never applied to Greenland, and no domestic replacement VAT framework exists.

Import duties are significant for a territory that imports the large majority of its manufactured goods. Excise duty rates are set by the Inatsisartut and may be revised annually. Cross-border businesses selling into Greenland price goods inclusive of applicable import duties rather than VAT.

How are cryptoassets handled?

Greenland has no dedicated cryptoasset tax framework. Where cryptoasset gains are declared, they are assessed under existing Greenlandic income tax categories. There is no Greenlandic equivalent of Denmark's speculation-gains framework guidance.

What is the treaty network?

Greenland's treaty coverage flows primarily through the Kingdom of Denmark framework. Denmark is the anchor — its treaty network of approximately 85 active bilateral conventions provides the basis from which specific treaties are extended to Greenland by mutual agreement. Not every Danish treaty automatically extends to Greenland; coverage depends on the individual bilateral agreement.

The Nordic Tax Convention (covering Denmark, Norway, Sweden, Finland, Iceland, and the Faroe Islands) expressly includes Greenland. Beyond the Nordic framework, the DK-US, DK-Canada, DK-UK, and DK-Germany treaties extend to Greenland by specific provision. Greenland is not an MLI signatory directly — Denmark signed the MLI but its Greenland extension depends on specific bilateral opt-in language.

Where does Greenland sit in the Nordic and Kingdom cohort?

Greenland anchors the Kingdom of Denmark constituent country archetype alongside the Faroe Islands. Both are distinct from mainland Denmark in tax, legal, and EU-status terms — and from each other in key respects.

Currency and the Kingdom of Denmark framework

Greenland uses the Danish Krone (DKK) directly. There is no separate Greenlandic krone. This is a material distinction from the Faroe Islands, which issue Faroese Krone (FOK) notes locally — though FOK is fixed at 1:1 parity with DKK and the two circulate interchangeably in practice.

All Greenlandic tax liabilities, duty payments, and corporate accounts denominate in DKK. Cross-border transactions with non-DKK partners face standard FX conversion; there are no capital controls specific to Greenland.

The 1985 EEC withdrawal and EU status today

Greenland is not a member of the European Union. It withdrew from the then-EEC (European Economic Community) on 1 February 1985 — the first and only territory to leave the European Community — following a 1982 referendum in which 53 percent voted to leave.

The EU–Greenland fisheries partnership provides access for EU fishing vessels to Greenlandic waters in exchange for financial compensation — a major ongoing arrangement given that fisheries account for approximately 95 percent of Greenlandic exports. Greenland receives EU Overseas Country and Territory (OCT) development funding but is not a beneficiary of EU Structural Funds.

Greenland vs Faroe Islands — Kingdom constituent distinctions

Both Greenland and the Faroe Islands are self-governing constituent countries within the Kingdom of Denmark. Both are outside the EU. Both are covered by the Nordic Tax Convention. Yet they differ in several commercially important ways:

The distinction between GL and FO frameworks matters practically for cross-border professionals. A practitioner licensed in Denmark does not automatically have authority to advise on Greenlandic or Faroese tax law — both are separate legislative jurisdictions. Always confirm that a professional's credentials cover the specific Kingdom constituent where the client operates.

Greenland's geopolitical and economic context

Greenland is the world's largest island — approximately 2.166 million square kilometres, of which roughly 80 percent is covered by the Greenland Ice Sheet. Population is around 57,000, making it one of the most sparsely populated territories on Earth per square kilometre.

Greenland is an Arctic Council member. The economy is heavily dependent on the Kingdom of Denmark block grant, which accounts for approximately 30 percent of government revenue. Tourism (cruise ships, ice climbing, northern lights) and a small mining sector supplement the dominant fisheries industry.

Common pitfalls when operating in Greenland

Companies and individuals operating in Greenland encounter recurring traps:

When should you talk to a Greenlandic Tax-Adviser?

Many straightforward Greenlandic residents handle annual returns directly through Skattestyrelsen (aka.gl). Some situations benefit from a credentialed professional:

• Income is above the threshold where the higher PIT bracket applies in your specific kommune
• Your business is in the mineral extraction, hydrocarbon, or rare-earth sector — separate licensing and tax frameworks apply
• You have cross-border income from a treaty country and need to confirm whether the DK treaty actually extends to Greenland
• You are moving between Greenland and mainland Denmark mid-year — the two are distinct tax jurisdictions
• You hold cryptoassets and have active disposal, staking, or mining activity
• You received a Skattestyrelsen Greenland audit notice or assessment
• You are considering a non-trivial investment in Greenland related to its mineral resources, defence infrastructure, or Arctic tourism
• You operate a fishing company and have cross-border EU fisheries-partnership exposures

Find vetted Greenland practitioners — including the Big-4 and national-tier firms operating out of Nuuk — through the directory below.

This page is general information. It is not personal guidance for your specific situation. Tax rules change. Always verify current figures on aka.gl or with a licensed Greenlandic practitioner before filing.