You cannot be awarded a permanent residence permit if you have overdue public debt. A debt is considered overdue if the amount due has not been repaid by the due date.
The following types of debt are considered public debts (conclusive list):
- Social Service Act or Active Social Policy Act public benefits that you are required by law to repay (such as overpaid social benefits)
- Child support paid to a former partner
- Childcare fees
- Overpaid housing benefits
- Housing loan
- Taxes and levies, unless the amount in arrears is due to circumstances beyond your control
Other debts, such as student loans, bank loans or housing loans are not considered public debts and will not prevent you from being awarded a permanent residence permit.
If you are granted a reprieve (i.e. if your debt is deferred), it means that the creditor (the state or municipality) has given you (the debtor) permission to postpone the repayment of your debt until after the original due date. For example, the tax administration (Skat) may award you a reprieve.
If in doubt, your municipality or the tax authorities can tell you if you have been granted a reprieve.
If you are granted a reprieve, your debt will not prevent you from obtaining permanent residence. However, your outstanding debt may not exceed DKK 106,532.78 (2013 level).
If you have a repayment schedule (instalment agreement), this means that you have agreed with the state or municipality that you will pay off your debt in instalments rather than as a lump sum. For example, you may agree to pay DKK 500 per month for three years.
You cannot obtain a permanent residence permit if you have overdue public debts, even if you have agreed to a repayment schedule.
When you apply for permanent residence, you will be asked to sign a sworn declaration that you have none of the abovementioned types of public debt. The declaration is included in the application form.