| As I mentioned, I can't say anything about Denmark, but I spent 5 years with this setup in France. In France during that time, I wasn't a resident (and not allowed to work for a French company, or get any benefits of residency); I was a long-stay visitor. It's a status designed for people who's lives, income, and often main residences, etc. are based elsewhere who just have a reason to stay in X country for more than the normal tourist visa (but they'll be going back someday, probably). If he gets sponsored by a Danish company, he'll surely need to pay Danish taxes then. Though it's possible he'd get a discount; I know the Netherlands gives US immigrants (my brother among them) a significant tax reduction -- to US-similar rates -- to make immigration there more enticing. If he does need to pay Danish taxes at some point, quite right, there's a treaty to avoid double-taxation -- whatever he pays in Danish taxes would be basically subtracted from what he owes in US taxes. In France as a long-stay visitor, I was required to submit French tax returns (where I owed nothing, and it's pretty simple -- the middle-aged ladies in the tax office are really nice to me) and US tax returns (where I have a US accountant to help me out; he's not hugely expensive, actually, even though we have bank accounts in 3 countries and own residences in two; I think we paid about $1K last year). Danish taxes are probably closer to the French system (fairly simple) than to the US system (horrendously complex unless you just have W-4 income), so he may never need a Danish accountant. It would be nice if tax planning were just for large corporations, not individuals; unfortunately, depending on how interesting you make your life, sometimes it's unavoidable. :) |