The main rule in the Greenlandic income tax law is that profits or losses arising from the sale of the taxpayer's assets are irrelevant to the income calculation, unless it concerns profits or losses from the sale of assets acquired in the taxpayer's business or for speculative purposes.
As a general rule, this means that individuals do not have to pay tax on capital gains from the sale of securities if the capital gain was achieved as part of ongoing wealth management. Conversely, capital losses on securities cannot be deducted from taxable income. All interest income and dividends related to investments in securities are taxable.
If you have questions about the tax rules in Greenland, you are very welcome to contact us.
Here you can read about Greenlandic taxation of returns in accumulating investment associations. Please note that the description only applies to investment certificates (danish).
Taxation of investments in Greenland
For Businesses and Corporations
Businesses and corporations that are subject to taxation in Greenland are taxed on realized gains from investments – including those in accumulating investment funds.
- Gains are taxed as ordinary income.
- Losses can be deducted from taxable income.
This makes investment an active part of the company’s capital management, where both risk and return can be managed professionally.
For Private Investors
As a private individual, you are not taxed on returns from accumulating investment funds unless the investment is considered speculative or part of a business activity.
- Capital gains are tax-free
- Capital losses are not deductible unless you are considered a speculator
- Upon emigration from Greenland, exit taxation applies
Dividend Tax and Reclaiming Withholding Tax
GrønlandsBANKEN, as a company domiciled in Greenland, is subject to taxation in Greenland in accordance with the Greenlandic Income Tax Act.
Pursuant to Section 86 of the Act, GrønlandsBANKEN is required to withhold tax on dividends at the total municipal tax rate set by Kommuneqarfik Sermersooq for the calendar year in which the dividend is paid.
The dividend tax is a final tax and may only be reclaimed by individuals or entities that are either exempt from tax liability under Section 3 of the Act or are residents of a country with which Greenland has a double taxation agreement.
If you reside abroad, you must contact the Greenland Tax Agency to determine whether you are covered by a double taxation agreement. You must also include documentation of the dividend payment from GrønlandsBANKEN in order to apply for a refund of the dividend tax in accordance with the tax rules of your home country.
The Greenland Tax Agency can be contacted at tax@nanoq.gl or by phone at +299 34 50 00.
Greenland does not have a general double taxation agreement with Denmark or other countries. This means:
- Dividends from foreign investments may be subject to withholding tax abroad
- In some cases, you may apply for a refund of foreign withholding tax – depending on the rules in the respective country
We recommend that you consult your advisor if you invest in foreign funds or shares.
We Advise You
At GrønlandsBANKEN, we collaborate with Sparinvest and BankInvest to offer you responsible and sustainable investment solutions – with respect for both returns and tax considerations.