What is dividend tax — and why do you only get 73%?
Dividend tax is the tax withheld from a dividend before the money reaches your account. If a Danish company pays 1,000 kr. in dividend, it withholds 27% = 270 kr. straight away and sends you 730 kr. That is why the amount on the account is less than the announcement said. The dividend is share income, so the 27% is the final tax if you are below the progression limit (79,400 kr. in 2026) — otherwise the rest, up to 42%, is settled on the annual tax statement.
The money goes from the company straight to your account.
A worked example (2026)
You own 200 shares, and the company pays 5 kr. per share in dividend = 1,000 kr.
- The company withholds 27% = 270 kr. and pays it to the tax authority.
- You receive 730 kr.
- On the tax statement, 1,000 kr. counts as share income, and the 270 kr. is already paid. Below the limit: nothing more. Above it: up to 15 percentage points more (42 − 27).
In an aktiesparekonto the tax is only 17%, settled together with the year's return — so there you receive the whole dividend and pay in January.
Foreign dividends
If you receive a dividend from a foreign company, the company's home country withholds its own tax first — withholding tax. Denmark typically credits up to 15%, and the rest of the Danish 27% you pay on the tax statement. If the country withholds more than 15% (e.g. Germany, Switzerland), you reclaim the difference yourself. US dividends are withheld at 15% if your provider has your W-8BEN form — otherwise 30%.
Dividends and funds
Distributing Danish mutual funds also withhold 27% of the distribution. In accumulating funds you never see the dividend — it is reinvested in the fund, and you are instead taxed on the fund's rise by the mark-to-market principle. The tax does not disappear; it just arrives from a different direction.
The typical beginner's mistake
Planning around "4% in dividend" and forgetting that 2.9% arrives on the account. The dividend yield is always quoted before tax. Count on 73% of the amount when working out what you can live on.
How you see it in Kiggo
Kiggo shows the dividend yield on every stock — before tax, as everyone does — and says whether the company pays a dividend and when. Kiggo does not calculate the tax; your provider and skat.dk do. In the app's glossary, dividend tax sits next to withholding tax, so you can see the difference between Danish and foreign dividends.
Related terms
Frequently asked questions
Why did I only get 73% of the dividend?
Because the company withholds 27% dividend tax before the money is sent. The 27% is your share-income tax, paid in advance. If you are below the progression limit, you owe nothing more.
Do I have to pay more than 27%?
Only if your total share income — dividends plus gains — exceeds 79,400 kr. in 2026 (158,800 kr. for couples). Then the part above is taxed at 42%, and the difference is collected via the annual tax statement.
What is the dividend tax in an aktiesparekonto?
17%, like all other returns in the account. The dividend is not withheld at payment; it is part of the year's total return, which is taxed in January.
What is a dividend statement?
The notice your provider sends when you receive a dividend: gross amount, tax withheld and net amount. Keep it — especially for foreign dividends, where you may need it to reclaim withholding tax.
Kiggo explains — Kiggo does not advise. We never tell you what to buy or sell, and key figures can only be compared between companies in the same industry. The decision is yours. Last updated 2026-09-23.
Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.
