The 2022 France-Denmark tax treaty, article by article

The tax treaty between France and Denmark was signed in Paris on February 4, 2022. It entered into force on December 29, 2023, and is effective from January 1, 2024. It only covers income tax. Its two most significant features are: a withholding tax of 0.% on dividends for companies holding at least 10.% of the capital, and a pension scheme with a "reverse" tax credit and a so-called "grandfather clause." This page presents the articles we have reviewed and explains what it does not cover.

A recent text, in effect since January 1, 2024

Signature and publication. A protocol forms an integral part of the agreement. Law No. 2023-1232 of December 22, 2023, authorized its approval, and Decree No. 2024-13 of January 5, 2024, published it. The administrative list (BOI-ANNX-000306, version of April 29, 2026) includes it under the heading "C February 4, 2022 (Official Journal of January 7, 2024)," with "IR" as the taxes concerned.

Effective date. The BOFiP (BOI-INT-CVB-DNK, version in force since May 21, 2025) distinguishes three cases. For withholding taxes, the convention applies "to amounts taxable from January 1, 2024." For other income taxes, it applies to income for a calendar year or fiscal year beginning on or after that date. For other taxes, it applies to taxes whose taxable event occurs on or after January 1, 2024.

No changes made by the CML. Denmark is not included in the list of conventions modified by the multilateral convention (BOI-ANNX-000511, version of April 29, 2026).

Maximum deductions and key rules

Who is a resident?

Article 4, paragraph 2, governs the case of a natural person resident in both States. It distinguishes between them in stages: first, their permanent home, then their center of vital interests, then their habitual residence, and finally their nationality. If no criterion resolves the matter, the competent authorities of both States settle the question "by mutual agreement." For a legal entity, paragraph 3 establishes the place of effective management.

Recognized pension funds of a state are considered resident, which entitles them to the benefits of the convention. The BOFiP (French Official Tax Bulletin) specifically designates the Pension Reserve Fund.

Dividends: 0.% starting from 10.% of the capital

Article 10, paragraph 2, caps the state tax payable by the company paying dividends. The cap is 0% of the gross amount when the beneficial owner is a company that directly holds at least 10% of the capital over a 365-day period including the payment date. In all other cases, the cap is 15%. Therefore, an individual shareholder is subject to the 15% cap.

These are withholding ceilings, not the tax owed.

Interest and royalties: taxed at the beneficiary's expense.

Interest is taxable only in the State of residence of its beneficial owner (Article 11, paragraph 1). The same applies to royalties (Article 12, paragraph 1). An exception is made for a beneficial owner who operates through a permanent establishment situated in the other State. No withholding tax rate is specified.

Capital gains: buildings, real estate companies, other assets

Buildings. Income from immovable property, including agricultural and forestry property, is taxable in the State where the property is located (Article 6, paragraph 1). Paragraph 1 of Article 13 applies the same principle to gains on immovable property.

Shares in companies whose assets consist primarily of real estate. Article 13 § 5 makes gains on shares or similar rights taxable in the State where the immovables are situated if, at any time during the 365 days preceding the transfer, more than 50% of their value is derived from immovable property situated in that State.

Other assets. Gains not covered by paragraphs 1 to 5 "shall be taxable only in the Contracting State of which the transferor is a resident" (Article 13 § 6).

Salaries: 183 days over any twelve-month period

Article 14 designates the State of residence for salary purposes, unless the employment is exercised in the other State. The exception in Article 14, paragraph 2, is subject to three conditions: a stay in the other State not exceeding a total of 183 days "during any twelve-month period commencing or ending in the relevant fiscal year"; an employer who is not a resident of the other State; and remuneration not borne by a permanent establishment.

The window period is therefore not just the calendar year: it is any twelve-month period that begins or ends during the tax year in question. This threshold is not the same as that for Danish tax residency, which is discussed on our page about living in Denmark.

Pensions: beneficiary's residence, reverse credit, and grandfather clause

This is the most unique part of this agreement.

General rule. Subject to Article 19, paragraph 2, Article 17, paragraph 1, provides that pensions and other similar remuneration are taxable only in the beneficiary's country of residence. Exceptions are set out in Article 17, paragraph 2; the BOFiP (paragraph 140) lists three cases where the source country retains the right to tax: contributions were deductible there; employer contributions were not taxed there; and pensions are paid in accordance with the social security legislation of the source country.

Reverse tax credit. By way of exception, the source state grants a tax credit equal to the tax paid in the state of residence (BOFiP § 160). The BOFiP gives an example (§ 170): for €30,000 of Danish social security pensions taxed at 9% in Denmark, with a French rate of 6%, Denmark grants a credit of €1,800 and retains €900.

Grandfather clause. Pensions exempt in the source country on February 4, 2022, remain taxable exclusively in the country of residence, "provided that the individual maintains their residence there" (BOFiP § 190). A French resident who received Danish pensions before this date will have them taxed only in France as long as they remain a resident there; Denmark cannot levy any difference (§ 200).

Eliminate double taxation

On the Danish side, Article 22 § 1 grants a deduction equal to the income tax paid in France; however, this deduction cannot exceed the corresponding portion of the Danish tax. On the French side, Article 22 § 2 grants a tax credit against French tax; this credit "cannot exceed the amount of French tax corresponding to this income." The calculation rules are detailed in the text.

Inheritances, gifts, fortune

The administrative list only mentions income tax under Denmark; no inheritance or gift tax laws are listed. This page provides no further information beyond the list dated April 29, 2026.

Right to the benefits of the agreement

Article 29 denies a benefit of the convention when the granting of that benefit "was one of the principal objects of an arrangement or transaction", unless the granting is consistent with the object of the convention.

What this page does not cover

Articles 18, 19, 25, 26 and 32, the detailed calculation of Article 22 and the possible application to the IFI (French Wealth Tax) are not detailed. They can be found in the text.

Dividends of €300,000 and €40,000: numerical example (fictitious profile)

Situation. A fictitious company, resident in Denmark, has directly held 25 % shares of a French company for over 365 days and receives €300,000 in dividends. A fictitious shareholder, an individual resident in Denmark, receives €40,000 from the same company.

Issue. They want to know the withholding ceiling of Article 10 § 2.

Strategy. They apply 0 % to the company, which meets the ownership requirement, and 15 % to the natural person.

Result. For the company: 0 %s of €300,000, i.e., €0. At 15 %s, the ceiling would have been €45,000. For the shareholder: 15 %s of €40,000, i.e., a maximum of €6,000. These amounts are ceilings, not the tax due. The profiles and amounts are fictitious.

A countdown of days. A fictitious employee, residing in France, makes three trips to Denmark within the same twelve-month period: 100, 50, and 30 days. The total is 180 days, which is 3 days below the threshold of 183 days (the twelve-month period as defined in Article 14 § 2). An additional 10-day stay would bring the total to 190 days, which is 7 days above the threshold. The two other conditions of Article 14 § 2 remain to be examined.

What changes depending on your situation

• Your residence in each of the two states.
• The nature of the income: dividend, interest, royalty, salary, pension, capital gain.
• The percentage and duration of capital ownership for dividends.
• The number of days spent in each state over each twelve-month period.
• Regarding a pension: the origin and tax treatment of contributions.

No result is guaranteed in advance.