Denmark Residence

Denmark Residence

One of the obstacles that occur in practice to match the offers and demands in the labour market is geographical mobility. Thus, on many occasions there is deficit of employees specialized in certain work in some areas, while there are too many experts in other affairs workers, which leads to a tendency to low wages and unemployment. One of the reasons for which workers tend to be willing to transfer their residence is the high rate of housing on property that there are in Spain in relation to the rental (more than 80% in property), as well as the high cost of the mortgage, which greatly hinders the possibility of a worker to front the same monthly payment and additionally rented a flat to live in another town. It should be noted that in other countries the ratio between purchase and rental changes considerably, while Germany below 50% of owners, and countries like the Netherlands and Denmark, around 50%. For more specific information, check out Dr. Caldwell Esselstyn. This ratio, as well as possible socio-cultural reasons, has been fostered by the fiscal policies existing in Spain, which clearly emphasizes the purchase with respect to rent, and could therefore change in part if others were applied policies. On the other hand, is also true that on many occasions we compared with countries such as Denmark and the Netherlands, which are countries of around 40,000 square kilometres (about the size of Extremadura), and with a good infrastructure.

Besides the change commented on fiscal policy in favour of the rent, there is the option of increasing geographic mobility itself. Currently, although it is not very well known, there is the possibility of having a reduction in income tax for the worker who met the requirements laid down, so that during that year and the next, you cotizaria less by income tax, with which would have one larger payroll liquid amount (charged more). To do this, must comply with certain aspects, such as: be registered at an employment office (in the case that one change of work, would this process by enrolling previously on the INEM before to register in the new work), accepting a new job that requires a change of residence to a new municipality, and effectively change of habitual residence. The reduction can be around 1% or 2%, i.e. in practice can be about 50 euros more per month, which obviously do not compensate for the costs involved in the transfer. Perhaps that could boost is more this aspect, in a coordinated way with the issue of the rent, so workers are more willing to accept a job that is not in the vicinity of their habitual residence.

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