3.7 Cross-border mobility in employment, entrepreneurship and vocational opportunities
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SCALEit is a programme for Danish start-ups and SMEs within the area of innovation with a wish to expand their business abroad. The programme is administered by the Danish Trade Council and is coordinated with the seven Danish innovation centres all over the world. The programme is individually designed according to the start-up’s/SME’s specific needs.
The programme can be a preparation workshop in Denmark in which Innovation Centre Denmark assists with the development of a business model and analysis of markets and possibilities of growth. The workshop can be followed by an international field trip to relevant markets where Innovation Centre Denmark facilitates contacts with local enterprises. The start-up/SME has the possibility to pitch their idea to local entrepreneurs, investors, and advisers. The local feedback will give the start-up/SME an indication of whether the idea is ready to scale.
Innovation Fund Denmark (Innovationsfonden)
Innovation Fund Denmark funds the programme International collaboration:
- The national Grand Solution programme, where foreign partners can be invited to participate
- Strategic thematic programmes within Horizon 2020, Nordic cooperation, EUREKA, and GlobalStars
- Eurostars for research intensive SMEs
- Bilateral cooperation with countries outside Europe
Erasmus programmes for young entrepreneurs
Denmark participates in the Erasmus programmes for young entrepreneurs. The programme has a European line and a global line. There are three local contacts in Denmark:
- Aalborg University
- DTU Skylab
The local contacts help with the application process.
Denmark participates in range of general mobility programmes. The programmes support international mobility for students and young people, for instance via studies abroad, apprenticeships, or voluntary work. The stay may have an entrepreneurial objective, but it is not a requirement.
Denmark funds the following programmes:
- Work Placements Abroad (Praktik i Udlandet or PIU): An international traineeship programme for pupils in vocational education and training (VET).
- DK-USA: A mobility programme for students, teachers, and leaders of Danish vocational education institutions.
For more informatio about these two programmes and for a full list of mobility programmes see section 6.5
Support and guidance on cross-border mobility in employment, entrepreneurship and vocational training for young people is available through Eures and Grib Verden as described below.
Eures is implemented at the portal www.jobnet.dk. Jobnet is the public job centres’ website for all jobseekers and employers in Denmark. Jobnet enables unemployed persons to search for a job among many thousands of vacant jobs.
Eures Denmark provides information on where to find jobs, how to apply, as well as information about the legislative framework applying to residence and work permits abroad. The primary focus is jobs in Europe, but young people can also find relevant information and links to job opportunities around the world.
Gribverden.dk is a website aimed at young people. The website provides information and inspiration regarding mobility for young people in connection with studies or apprenticeships abroad, for instance relevant mobility programmes. The website also provides information regarding employment.
The website is administered by the Ministry of Higher Education and Science
Public funding of cross-border mobility in employment, entrepreneurship and vocational training
Work Placements Abroad (PIU) is funded by the Employers’ Reimbursement Fund (AUB), which is an education contribution that all employers within the vocational education and training (VET) sector are obliged to pay. The Employers’ Reimbursement Fund (AUB) finances expenses in relation to apprenticeships in Denmark and abroad.
DK-USA is financed by public funds.
Furthermore, Danish students staying abroad as part of their studies may be entitled to the state education grant during their stay.
The Danish state educational grant (SU) can be awarded for a study period abroad if the Danish educational institution accepts the study period abroad as part of the current Danish study programme. This means that credits must be awarded for the study period in question. Where a study period abroad of 12 months is only given 6 months’ credits in the Danish study programme, the state education grant can only be awarded for 6 months.
It is possible to be awarded a state educational grant (SU) for a full study programme abroad when the study programme is recognised by Danish authorities and listed on a fast track list.
Furthermore, it is possible for higher education students to apply for special educational assistance (support scheme) when going abroad, for instance full degree or credit mobility or during a traineeship. The support granted during the stay abroad equals the support that the young person would be entitled to in Denmark.
Moreover, students who wish to study abroad can apply for a scholarship for up to 2 years. The scholarship is intended to partly or wholly cover the tuition fees for certain study programmes in other countries. A range of conditions must be met in order for the student to be eligible for the scholarship, for instance that the student must be entitled to the Danish student grant (SU). A full list of conditions can be found at the website of the Danish Agency for Higher Education and Science.
In this section, the legal framework applying to incoming and outgoing young workers, trainees/apprentices and young professionals/entrepreneurs is described.
Incoming young people
Social security for incoming young people in employment or traineeships
Social security measures for young people coming to Denmark depend on the country of origin and the length of the stay.
Young people from another EU/EEA country and Switzerland have the right to receive benefits when they move to another part of the EU. The European Commission provides information on social benefits in Denmark, when young people are eligible for benefits, what young people are entitled to and how to go about claiming it.
Students and workers from outside EU/EEA countries must be able to provide for themselves. They are not allowed to receive public benefits (e.g., social security benefits).
Unemployment insurance and occupational injury insurance for incoming young people in employment or traineeships
In Denmark, employers are obligated to take out occupational injury insurance. You are covered by your employer’s insurance in connection with your job. Employer insurance does not cover your leisure time.
Unemployment insurance is, unlike in many other countries, voluntary in Denmark. You can choose to register with an unemployment insurance fund (A-kasse).
Healthcare for incoming young people in employment or traineeships
Entitlement to healthcare under the Danish public health insurance scheme depends on which of the following groups the young person belongs to:
- Residents in Denmark,
- Citizens of the EU/EEA/Switzerland are covered by public health insurance in Denmark according to the EU coordination regulations,
- Persons who are temporarily staying in Denmark.
The yellow health insurance card proves that the young person is entitled to the services offered under the national health insurance scheme.
- As a resident in Denmark (i.e., registered in the civil registration system), a young person is entitled to all public healthcare benefits.
- As a citizen of the EU/EEA/Switzerland covered by public health insurance in Denmark according to the EU coordination rules, the young person is entitled to all public healthcare benefits.
- As a person temporarily staying in Denmark.
The special health insurance card proves that the young person is entitled to the services offered under the national health insurance scheme.
If the young person is covered by public health insurance in another EU/EEA country or Switzerland according to the EU coordination rules, the young person is entitled to medically necessary, state-provided healthcare during the stay under the same conditions and at the same cost (free for the most) as a resident in Denmark. The European Health Insurance Card (EHIC) or a certificate that temporarily replaces this card proves the right to healthcare.
Work and residence permit for incoming young people in employment or traineeships
Different rules apply to Nordic citizens, EU/EEA/Swiss citizens and third-country citizens.
The legal regulation of work and residence permits of young foreigners in Denmark is complex. Different rules apply depending on which scheme the young person belongs to (e.g., a job in the fast-track scheme, the positive list scheme, a job as a researcher, pay-limit scheme, etc.) as well as the young person’s country of origin.
Citizens of Finland, Iceland, Norway or Sweden do not need to apply for a registration certificate because as a citizen of a Nordic country they have the right to reside in Denmark without permission. Nordic citizens are free to reside, study and work in Denmark.
EU/EEA citizens may freely enter Denmark and remain in Denmark for up to three months without an EU residence document (registration certificate). As a jobseeker, he/she may reside in Denmark for up to 6 months without a registration certificate. The periods of 3 and 6 months are calculated from the date of entry.
If the stay in Denmark will last more than 3 months, he/she has to apply for an EU residence document (registration certificate) before the 3 months expires. Jobseekers are required to submit their application within 6 months after entry.
Citizens from a country outside Scandinavia, the EU/EEA or Switzerland must apply for a residence and work permit in their home country through a Danish mission (i.e., a Danish embassy or a Danish consulate general).
Read more about work and residence permits on New to Denmark, which is the official portal for foreign nationals who wish to visit, live or work in Denmark.
Taxation for incoming young people in employment or traineeships
Everyone earning a salary in Denmark is liable for Danish taxation, which obliges taxpayers to declare all income and tax deductions – both from Denmark and abroad – to the Danish tax authorities.
In Denmark, a so-called global income principle applies, according to which income is taxed even if it comes from abroad.
The principle can result in the same income being taxed both in Denmark and abroad.
To prevent taxpayers paying tax twice on the same income, Denmark has entered into double taxation agreements with a number of countries.
To determine how a given income is to be taxed, it is necessary to read the specific double taxation agreement between Denmark and the country in question.
Outgoing young people
Social security for outgoing young people in employment or traineeships
The Danish social security system consists of services and benefits that provide economic security such as health insurance, family benefits, pension, unemployment benefits, daily sick pay, ATP (Danish labour market supplementary pension) and industrial injury insurance.
The legal regulation of young Danes going abroad is complex and depends on the country of origin and the length of stay.
As a rule, young Danes working in an EU/EEA country, Switzerland or the Faroe Islands must take out unemployment insurance in the country they work in. Exceptions are posted workers and cross-border workers.
If you are an employee or a self-employed professional working for a Danish company, you can work temporarily in another EU/EEA country and/or Switzerland but remain covered by the social security system in Denmark.
To remain covered by the social security system in Denmark while working in another EU/EEA country and/or Switzerland, you or your employer need to apply for the A1 certificate. The certificate proves that you pay social contributions in Denmark.
Young Danes working in non-EU/EEA countries can keep their Danish unemployment insurance.
Denmark has made bilateral agreements with a range of non-EU/EEA countries regarding social security. Read more about social security when working abroad at borger.dk.
If the young person is not covered by Danish social security, he/she can be covered in the country in which he/she lives or works.
Danish young people may be entitled to Danish unemployment benefit for 3 months when they are seeking a job in another EU/EEA country, the Faroe Islands or Switzerland. The young people must meet certain requirements and apply for the PD U2 document, which the unemployment insurance funds issue.
Health insurance for outgoing young people in employment or traineeships
When young Danes study or work in countries outside the EU/EEA or Switzerland, they are not covered by Danish public health insurance. They may be entitled to health insurance in the host country or they must take out a private health insurance.
Young Danes working or studying in an EU/EEA country or Switzerland are covered by the European health insurance that gives young Danes access to healthcare during a temporary stay under the same conditions and at the same cost as people insured in that country. When young Danes move their habitual residence to another country, they should register with the S1 form instead of using the EHIC to receive medical care in the new country of habitual residence.
Work and residence permit for outgoing young people in employment or traineeships
Due to the Nordic cooperation, young Danes can travel, live, study and work in any of the Nordic countries without a visa, work or residence permit.
EU citizens can freely stay in another EU/EEA country for 3 months without a residence permit; hereafter, EU citizens must apply for an EU residence document (registration certificate).
When working or residing in countries outside the EU/EEA, different rules apply depending on the country of destination and the length of the stay. Young Danes should always orientate themselves at the Danish Ministry of Foreign Affairs.
Taxation for outgoing young people in employment or traineeships
Young Danes receiving the State Education Grant abroad must pay tax of the grant to the Danish state. Stipends and other private grants are generally tax-free.
If the young Dane works during the stay abroad, the young person must pay tax in the country of residence. In some situations, the student must also pay tax of the salary to the Danish state (double taxation). In case of double taxation, the student will receive a tax reduction in Denmark equal to the tax paid in the country of residence.
If Danish students are paid by their employer during apprenticeships abroad, they must pay tax in the country of residence. Danes employed and posted abroad by a Danish employer pay tax in Denmark.