Employment Taxes

• Income tax: Greenland operates on a flat income tax system, with rates varying by municipality, up to a maximum of 44%.
• Social security contributions: Employees do not contribute to social security. Employers are responsible for a contribution of 2.1% of gross salary in 2025.

Leave policy

• Annual vacation: Employees accrue 2.08 days per month, totaling approximately 25 days per year.
• Sick leave: Policies vary by employer; it's essential to review your employment contract for specifics.
• Maternity leave: Up to 17 weeks.
• Paternity leave: 2 weeks.
• Parental leave: Following maternity/paternity leave, parents are entitled to a total of 21 weeks, or 25 weeks in the case of twins.

Employment termination

Termination policies in Greenland are influenced by the length of service and the reason for termination:

Severance pay: Employees terminated without cause may be entitled to severance pay, especially those with significant tenure.

Hiring and contracts

Employment contracts in Greenland should outline salary, working hours, job responsibilities, and termination conditions. It's common for contracts to be in Danish, so ensure you understand the terms before signing.

Payroll and salary payments

• Minimum Wage: Greenland does not have a statutory national minimum wage. Instead, wages are typically determined through collective bargaining agreements specific to industries or professions.
• Payroll Frequency: Monthly.

Benefits

Employers in Greenland often offer:

• Pension plans: Strong pension schemes are common.
• Supplementary insurance: Including health and life insurance.
• Work-life balance support: Flexible working hours and generous leave policies.

Monthly living costs (Nuuk Edition)

Here’s a snapshot of average monthly expenses in Nuuk:

• Rent: DKK 7,275 in a normal area.
• Utilities: Approximately DKK 1,108 per month.
• Groceries: Prices vary; for example, a gallon of milk costs around DKK 69.30, and a loaf of bread is about DKK 22.07.

How to get a local ID number

To work or reside in Greenland, you’ll need a personal identification number:

• Residence registration: Register your address with the local municipality.
• Apply for a CPR number: This is your personal ID number used for tax, healthcare, and other services.

Social security registration

While employees don’t contribute directly, employers handle social security registrations and contributions. Ensure your employer has registered you appropriately to access benefits.

Banking

Opening a bank account in Greenland is straightforward:

• Major banks: The Bank of Greenland (GrønlandsBANKEN) is the primary commercial bank in Greenland.
• Requirements: Valid ID, proof of address, and your CPR number.

Housing and rental process

• Housing market: A housing shortage is particularly prevalent in Nuuk. Start your search early.
• Tenant rights: Tenants have the right to privacy; landlords must provide notice before entering the property.

Healthcare system

Greenland offers publicly financed healthcare:

• Access: Residents have the right to free healthcare services, including prescription medicine.
• Facilities: Each district has a hospital, with specialized treatments available in Nuuk

Driving and public transport

• Driving: No roads connect towns; travel between them is by air or sea.
• Public transport: Cities like Nuuk have bus services (e.g., Nuup Bussii) and taxis.
• You can drive in Greenland for up to 90 days with a valid foreign driving license (EU/EEA, or international license with IDP for non-EU countries). If you’re staying longer, you may need to exchange it or apply for a Greenlandic driving license, depending on your country of origin.

Emergency and important contacts

• Emergency services: Dial 112 for police, fire, or medical emergencies.

Work permit and Visa requirements

For EU citizens: Greenland is not part of the EU or the Schengen Area. Therefore, EU citizens do not have automatic rights to enter Greenland. However, they can enter Greenland without a visa for short stays (up to 90 days). EU citizens wishing to work or reside in Greenland must apply for a work and residence permit through the Danish Agency for International Recruitment and Integration (SIRI). The application process typically takes around three months.

For Non-EU citizens: Citizens from countries requiring a visa to enter Denmark will also need a specific visa to enter Greenland. A Schengen visa does not grant entry to Greenland. Non-EU citizens must obtain a work and residence permit to work or reside in Greenland. Applications are submitted to SIRI and require an employment contract, as well as proof that the position cannot be filled by local labor. Processing time is approximately three months.

For Nordic citizens: Citizens of Denmark, Finland, Iceland, Norway, and Sweden can freely enter, reside, and work in Greenland without a visa or work permit.