Greenland taxes fully resident individuals and companies on worldwide income, with non-resident companies taxed only on profits from a Greenland permanent establishment and separately on income from oil, gas, and mineral exploration or exploitation regardless of PE status. The standard corporate tax rate is 25% for both Greenlandic and foreign companies, administered by Skattestyrelsen; Greenland has its own tax legislation, autonomous from Denmark, though it remains a constituent country of the Kingdom of Denmark.
The tax year generally follows the calendar year (income year). Companies may pay voluntary tax on account, due no later than December 31 of the income year; if tax on account is not paid or falls short of the final liability, a 6% surcharge applies to the shortfall.
25% for both Greenlandic and foreign companies, with a 6% surcharge applied to any shortfall between voluntary tax paid on account and the final corporation tax due.
The headline personal income tax (PIT) rate is 10% plus municipal tax.
0% - there is no VAT in Greenland. Greenland is not part of the EU VAT area. Instead, import duties apply to specific goods (vehicles, alcohol, cigarettes, food products), and separate excise duties apply to fishing of certain species, locally-produced alcohol, lottery/gambling activity, and motor vehicles.
An individual becomes fully tax liable in Greenland by taking up residence (acquiring a home and settling in) or by staying more than six consecutive months, with taxation generally commencing from the date of arrival; short holiday absences do not break the six-month count. Fully resident individuals are taxed on worldwide income (up to 44%, depending on municipality) unless a tax treaty's double-residence tie-breaker assigns residency elsewhere. Individuals not fully resident face limited tax liability on Greenland-source income only, defined by Section 2 of the Greenlandic Tax Act. A company is resident based on its place of incorporation/management; non-resident companies are taxed on profits from a Greenland permanent establishment, and separately on income connected to oil, gas, and mineral exploration/exploitation regardless of PE status.
A non-resident company is subject to Greenland tax on business profits derived through a permanent establishment in Greenland, generally following OECD Model principles. Non-resident companies engaged in oil, gas, or mineral exploration or exploitation are taxable in Greenland regardless of whether a permanent establishment exists, a broader source-based rule specific to Greenland's resource sector.
A Greenlandic company (alone, with other group companies, or with individual owners and their next of kin) must include a foreign subsidiary's CFC income in its own taxable income if it controls that subsidiary (ownership thresholds cited include "control" generally and, per one source, specifically more than 50% of shares or voting rights), the subsidiary's financial assets average more than 10% of its total assets during the income year, and the foreign company is taxed "substantially lower" than under Greenlandic taxation. There is no white list or black list exempting subsidiaries resident in particular countries - each case is assessed on the facts. CFC status also interacts with Greenland's interest withholding regime: the general 25% withholding tax on interest paid to a non-resident creditor does not apply where the recipient is under the controlling influence of a parent resident in Denmark, the Faroe Islands, or a DTT country, provided the recipient would be subject to CFC taxation in its own jurisdiction if local conditions were met.
Greenland has a real, currently-changing debt-to-equity thin capitalization rule limiting interest deductions and capital-loss deductions on related-party debt. Through the 2023 income year the ratio was 2:1; a bill approved 14 November 2023 raised the ratio to 4:1, effective from the 2024 income year onward - meaning a related-party debt load of up to four times equity is now permitted before excess interest and capital losses become non-deductible. Separately, transfer pricing documentation (arm's-length pricing for related-party transactions, applicable where ownership or voting control exceeds 50%) must be filed within 60 days of the tax return deadline once controlled-transaction value thresholds are met (DKK 500 million for 2023, reduced to DKK 250 million for 2024) - Greenland has no joint taxation regime, so this documentation requirement extends even to transactions between two Greenlandic group entities.
Greenland classifies entities under its own domestic Greenlandic Tax Act rather than offering an elective check-the-box system, and no ATAD2-style anti-hybrid mismatch regime addressing double-deduction or deduction-without-inclusion outcomes has been identified; Greenland's CFC rules (described elsewhere on this page) instead function as the jurisdiction's primary anti-avoidance backstop against low-taxed foreign structures, requiring inclusion of a controlled foreign subsidiary's income where financial assets exceed 10% of total assets and the subsidiary is substantially lower-taxed than under Greenlandic law.
No domestic FBAR-equivalent regime requires Greenland residents to separately disclose foreign financial accounts. Greenland is a CRS participating jurisdiction (confirmed on current CRS reportable-jurisdiction lists) and exchanges financial account information with partner tax authorities. US persons remain independently subject to FinCEN Form 114 (FBAR) and potentially Form 8938 regardless of Greenland's own rules.
Dividends from foreign companies are tax-free in Greenland provided the recipient holds at least 25% of the shares in the distributing company for at least one year; there is otherwise no general participation exemption or similar relief for domestic dividends, meaning ordinary Greenlandic holding structures are generally tax-inefficient outside this specific foreign-dividend carve-out. A separate elective regime (chapter 3b, for companies in mineral resources, water-based energy production, and related industries) provides its own distinct dividend and withholding treatment for qualifying companies that elect into it for a minimum five-year period.
Relief is generally available under Greenlandic tax law to credit foreign tax paid on non-Greenlandic-source profits against the Greenlandic tax on those same profits; where relief is offered under one of Greenland's double tax treaties (currently limited to Denmark, the Faroe Islands, Iceland, and Norway for full corporate-tax coverage), the level of relief is capped at the treaty-provided amount.
Very limited. Sources agree Greenland's comprehensive corporate/general tax treaty coverage extends only to Denmark, the Faroe Islands, Iceland, and Norway. PwC separately notes Greenland has additional narrower treaties covering only employee tax with Denmark, the Faroe Islands, Guernsey, Iceland, the Isle of Man, Jersey, and Norway - broader in partner count than the general treaty network but limited in scope to employment income. Beyond the treaty network, Greenland's 46 TIEAs (see above) provide for information exchange without full double-tax relief.