Short-term migrant workers subject to Faroese tax

Foreign nationals working in the Faroes for non-Faroese employers are subject to taxation in the Faroes.

Short-term migrant workers who do not relocate to the Faroes are required to apply for a temporary Faroese civic number (P-tal) to receive their wages.

These were the key points in finance minister Jørgen Niclasen’s reply to MP Jóhannis Joensen’s enquiry about taxation of migrant workers employed by non-Faroese companies.

A short period is in this context defined as 180 days or less than 12 months.

No child allowance or interest subsidies

These workers have limited tax liability in the Faroe Islands and are subject to 42-percent taxation of their income earned in the country.

They are not entitled to child allowance or interest subsidies.

Workers on ships in the FAS (the Faroese national and international ship register) or on bareboat ships are subject to a 35-percent tax rate.

People who stay in the Faroe Islands for more than 180 days are required to move their address to the Faroes, at which point they become liable to full taxation in the Faroes. This includes taxation of income earned in other countries.

Read the Faroese version of this article here.

Translated by prosa.fo

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