Greenland

Value-added tax (VAT)

There is no VAT in Greenland.

Import duties

There are no general import duties on operating equipment in Greenland. However, if present in Greenland for more than an eight-month period, operating equipment has to be declared to the Greenlandic tax authorities for statistical purposes. There are import duties on some assets, such as cars, etc.

There are also import duties on alcohol, cigarettes, food products, etc. The fares vary depending on the exact goods in question.

Excise duties

There are Greenlandic excise duties on fishing of some fish species, alcohol produced in Greenland, lottery and gambling activities, motor vehicles, and various other excise taxes. The duties depend on the exact circumstances.

Property taxes

There are no property taxes in Greenland.

Stamp taxes

Stamp tax is payable on a few documents, such as a deed of transfer of real estate and ships (1.5% of the transfer sum), including on transfer of shares in companies that own ships.

Capital gains taxes

There are capital gains taxes on receivables, equity instruments, real estate, financial contracts (derivatives), and depreciable assets, including oil, gas, and mineral licences. The tax rate is identical to the general corporate tax rate, effectively 31.8% (30% for oil, gas, and mineral licence holders).

Losses on financial instruments may only be deducted from gains on financial assets.

Payroll taxes

Other than social security contributions (see below), no additional payroll taxes are applicable in Greenland.

Social security contributions

Employers (not employees) are obligated to pay 1.1% (2.1 % for the income year 2025) of all paid wages and salaries as social security contributions (AMA) .

AMA is based on the monthly grossed up salary including fringe benefits for each employee on the same scheme as income tax.

All Danish, Greenlandic, and Faroese employers are subject to Danish social security payments (ATP). This applies to both foreign and Danish employees. However, foreign employees are exempt unless they are working in Greenland for more than six months.

Foreign employers are exempt from ATP unless they employ Danish employees who are not residents in Greenland.

Environmental taxes

In Greenland, environmental taxes are paid on mineral oil products, which in Greenland are used for the production of heat, electricity, and motor fuel.

Mandatory pension scheme

All employees, subject to full tax liability in Greenland, must pay 10% in 2024 (11% 2025 and onwards) to a Greenlandic pension fund based on the A-tax basis (salaries, etc). This does not apply for an employee, who is a limited tax payer staying in Greenland less than 6 months.

Greenlandic employees have to pay to a recognized pension fund. However the Greenland tax authorities may, upon application, grant permission for contributions to a pension scheme established in Norway, the Faroe Islands, Iceland, or a country that is a member of the EU for a period of up to 2 income years.

This exception is however based on certain conditions that must be met.