The price and quality of MBA programs vary
The cost of an MBA from a Danish provider ranges from approximately DKK 130,000 to over DKK 500,000. Additionally, there is a pricing difference between an Executive MBA and a so-called full-time MBA, which requires full-time study. The latter is typically pursued in addition to a full-time management position.
There are three ways to pay for an MBA program
- Self paid
- Gross salary arrangement (an agreement between you and your company)
- Company paid
There are several options for funding and/or applying for scholarships.
Individual payment (Self paid)
As a private individual, you can choose to finance your MBA from your personal income as an investment in your professional and personal development.
The sum cannot be claimed as a tax deduction when funding from your own income. Henley is one of the providers who offers to divide the funding into installments.
It is important to keep in mind that only courses are subject to VAT in Denmark; therefore, you shouldn't add VAT to the cost of a Henley MBA.
Gross salary
You and your employer may also decide to pay for your MBA out of your gross salary, meaning that the payment is done without taking taxes into account. You pay for your MBA yourself under the gross salary plan, but at a lower cost because the cost is taken out of your income before taxes are subtracted. Your percentage of withdrawals will determine how much money you have saved. Your pay stub shows the percentage of withdrawals. SKAT and TAX.dk both have more information about the gross salary plan.
Another option is to reach an agreement on a split with your employer. This could mean that the employer pays 50% and you are responsible for the other 50% over the course of x installments taken from your gross earnings. Additionally, you and your employer concur on this.
A company-financed MBA
Your MBA is funded by your employer (or your own business), who sees it as an investment in your and the business's professional growth. Regarding your finances, this has no tax repercussions. It is also possible for your business to contribute to the cost by covering a portion of the MBA's total cost.
