Faroese government proposes tax reform costing 200 million Danish kroner

The tax reform proposed by the Faroese government is estimated to cost a total of 200 million Danish kroner, with 100 million allocated for this year and an additional 100 million for next year.

Of this amount, 50 million kroner will be financed through tax adjustments. Starting January 1st, individuals working abroad will see their taxes increase by between 2,000 and 5,000 kroner per month.

This adjustment will level the playing field for those working overseas, eliminating the tax advantages they previously enjoyed by requiring them to pay the difference between foreign and Faroese tax rates.

The decision to implement this change in the tax system was passed a year ago.

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