I have had to make the difficult decision on moving back to Iceland. This happens due to tax issue that I am having and I am going to have while on social welfare from Iceland and living in Denmark. This issue is going to result in me owing tax to the Danish state and as things are now and are going to be for the next few years, that debt would only grow up to amount for me that I would not be able to pay. Since it is going to take me at least up to 10 years to start my writing career properly in terms of income from that work. Since I don’t want to collect tax debt in Denmark (they are the worst) I have made the chose on moving back to Iceland. This was not something that I had planned, but it happened anyway. I plan on moving back to Iceland in December-2014, it is going to take me several months (if I am lucky) to get social apartment in Hvammstangi (where I used to live and where I am going to live, for now anyway). So I am going to try and keep my geophone network in working order properly updated (the images) while this is taking place.
The technical description of the tax issue that I am having
Here are the technical details of my tax issue.
Iceland pays out my social welfare. I pay tax on that income in Iceland. Just like if I was living there, with the exception is that I don’t pay any tax to municipality (far as I know) since I don’t live in one in Iceland.
Denmark: In Denmark I am taxed as normal Danish person. They minus the tax that I have already paid in Iceland from the total amount that I need to pay here in Denmark. The tax breaks down in following parts.
I pay health care tax.
I pay tax to the Danish state
I pay tax to the municipality that I live in.
This amounts to around 900 DKK that I need to pay extra each month (total amount divided by 12 months) and it is just too much for me. I can’t afford this and the amount in terms of tax debt would just build up over the years until something bad would happen when the Danish state would finally take action against me. So out of the options that I had to make. I decided to move back to Iceland until such time that I have enough income on my own to live in Denmark and to have that income only taxed in Denmark and nowhere else. This is going to take me up to 10 years as I mentioned above. At least I now know what does not work when moving between countries and this clearly is one of the thing that does not work at all for me.
I don’t take this decision easily, since I like it where I am now. But I need to be able to afford to live in Denmark and for the moment I can’t afford it. I have now been struggling for two years now living in Denmark and that on it’s own has taken it’s toll on me. This was the last straw for me. It does cost a lot of money moving back to Iceland (I have to get a loan from my parents to cover part of that cost, that is around 2000€), but it is at least better than what alternative that I am facing if I stay in Denmark.
I plan on moving back to Denmark once my income matters are clear and stable and not based on social welfare. It is just going to take a good while until that goal is reached.
Updated: I am not going to be moving back to Denmark. I am now going to be moving to Azores Islands (Portugal) instead. The island that I have chosen moving to is the island of Flores, Azores Islands. When this move is going to happen I don’t know yet. Since I have to meet my income requirements before I move to Flores, Azores Islands. I won’t be moving there while living off social welfare from Iceland, it just is not possible to do so and too high risk (in terms of financially) for me to do so.
Update 2: This is just a plan. It might not work out due to one change or something might happen that I am not aware of today. So in 10 years time I am going to see if that I can move to Flores, Azores Islands. If I like it there, I am going to move there. I don’t expect anything else but to like it there. I however never know.
Update 3: So I just found out today that I can’t imagine to live somewhere else then in Padborg / Bov area. I still have be able to afford it. At the moment I can’t afford it. So I am going to move back here once I can afford it. That is going to take some 10 years at the longest in my estimate.
Update 4: I now don’t expect to be moving back to Denmark. As recent events in Iceland have showed me, it is difficult to monitor them from distance at the level I want to.
Post updated on 23-July-2014 at 15:37 CEST.
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Post updated on 29-July-2014 at 17:51 CEST.
Post updated on 22-August-2014 at 21:06 CEST.