contracts

Consultancy agreement in Denmark: Template, Key Clauses and Local Law (2026)

Adira EditorialLegal AI desk6 min read

What a consultancy agreement is in Denmark A consultancy agreement engages an individual or firm to provide expert services to a client as an independent contractor rather than an employee. It suits management consultants, IT and engineering specialists, interim leaders and advisers. Denmark has no dedicated consultancy statute, so the agreement rests on general contract law with wide freedom of contract between businesses. Three local issues shape it most: whether the consultant is genuinely self-employed or really an employee, VAT, and ownership of the work produced. This page is general information, not legal advice. For a significant engagement, have a qualified professional review the agreement. ## The local rules that shape a Danish consultancy - Self-employed or employee. If a consultant is in reality an employee, Danish employment protections can apply, including the Salaried Employees Act for salaried roles and any relevant collective agreement, with rights such as notice, full sick pay and holiday. Danish authorities and courts look at the substance, including control, financial risk and integration, not just the label.

  • VAT (moms). Consultancy services are generally subject to 25 percent VAT once the provider is VAT registered, so the agreement should state whether fees are inclusive or exclusive of VAT.
  • Intellectual property. A consultant's output does not pass to the client automatically. Ownership of deliverables must be assigned or licensed expressly.
  • Restraints. Any non-compete or non-solicitation obligation must respect the Danish rules on employment clauses where the person is close to employee status; even in a pure B2B setting, section 36 of the Contracts Act can moderate an unreasonable restraint. ## A consultancy agreement template you can adapt ``` CONSULTANCY AGREEMENT Date: [date] Client: [name, CVR number, address] Consultant: [name, CVR number, address] 1. SERVICES The Consultant will provide: [scope of advice or services and any deliverables, referenced to an Appendix if needed]. 2. TERM This agreement runs from [date] [until completion / for [period]] and may be ended under clause 9. 3. FEES AND VAT Fees are [day rate / fixed fee / retainer]. Fees are [inclusive / exclusive] of VAT at 25 percent. Invoices are payable within [number] days, with interest on overdue amounts under the Interest Act. 4. INDEPENDENT CONTRACTOR The Consultant is an independent contractor, not an employee, is responsible for its own tax, VAT and social contributions, and is not entitled to employee benefits. The Consultant may work for others where there is no conflict. 5. PERFORMANCE The Consultant performs with professional skill and care. 6. INTELLECTUAL PROPERTY IP created for the Client is [assigned to the Client on payment / licensed to the Client]; the Consultant keeps its background IP. 7. CONFIDENTIALITY The Consultant keeps the Client's confidential information private during and after the engagement, including trade secrets under the Trade Secrets Act. 8. DATA PROTECTION Where personal data is processed, the parties comply with the GDPR and the Danish Data Protection Act. 9. TERMINATION AND LIABILITY Either party may terminate on [period] notice or for material breach not remedied within [number] days. [Liability cap, reasonable and clear.] 10. GOVERNING LAW This agreement is governed by Danish law. Signed: Client ____________ Consultant ____________ Date ______

Frequently asked questions

When is a consultant treated as an employee in Denmark?
When the substance of the relationship looks like employment, regardless of the label. Danish authorities weigh control, financial risk and integration into the business. If the engagement resembles employment, protections such as the Salaried Employees Act or a collective agreement can apply, with rights like notice, full sick pay and holiday. This is general information, not legal advice.
Does a consultant charge VAT in Denmark?
Generally yes, once registered. Consultancy services are usually subject to the standard 25 percent VAT (moms), so the agreement should state whether fees are inclusive or exclusive of VAT.
Who owns the intellectual property a consultant creates in Denmark?
Only what the agreement provides. A consultant's output does not pass to the client automatically. If the client needs to own the deliverables, the agreement must assign the IP expressly, usually on payment, while the consultant keeps its background tools and methods.
Can a Danish consultancy agreement include a non-compete?
It can, but keep it narrow. Where the consultant is close to employee status, the rules on employment clauses require compensation and limit duration. Even in a clear business to business deal, section 36 of the Contracts Act can moderate an unreasonable restraint.
Is confidential information protected beyond the agreement?
Yes, where it qualifies as a trade secret. The Danish Trade Secrets Act protects genuine trade secrets by statute, with remedies including injunctions and damages, so the confidentiality clause should reference it alongside the contractual obligations.
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