Territorial Review Copenhagen - Region Hovedstaden

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Authority, set up to deal with tax issues for employees working in Denmark,
but living in Sweden. More of these initiatives would be welcome: national
governments in Denmark and Sweden could both benefit from increasing
co-operation in the Øresund Region.
3.3 Metropolitan finance
The revenue mix of local governments in Denmark is remarkable. The
largest revenue source for municipalities is local taxes. For municipalities in
the Capital Region, this represents on average 64% of their income. The
main local tax is the income tax, a tax base shared with the national
government. The revenues from this tax base compose about 80% of total
local tax income. Other local taxes are land and property taxes and a
relatively limited local corporate tax. The extent of tax decentralisation in
Denmark is extremely great compared with other OECD countries
(Figure 3.7). In contrast with many OECD countries, it is not the property
tax but the income tax that is the dominant local tax.