Banking, Money and Taxes in Denmark

Expats will find that managing banking, money and taxes in Denmark is an easy and convenient process.

That said, although the country's highly developed financial infrastructure is a definite plus, expats will need to budget their money carefully as Denmark has one of the highest tax rates in the world, not to mention a notoriously high cost of living. 

Money in Denmark

The official currency of Denmark is the Danish krone or crown, abbreviated as DKK. The krone is divided into 100 øre. 

• Notes: 50 DKK, 100 DKK, 200 DKK, 500 DKK and 1,000 DKK

• Coins: 50 øre and 1 DKK, 2 DKK, 5 DKK, 10 DKK and 20 DKK

Banking in Denmark

Opening a bank account 

To open a bank account in Denmark, expats must first apply for and obtain a Civil Registration Number (CPR) and head to the bank to open their account. Expats will need to open a NemKonto, which is used for salary and government payments such as tax refunds. It is compulsory for all residents in Denmark to have a NemKonto.

ATMs and credit cards

ATMs can be found outside all banks in Denmark, as well as in most supermarkets and shopping centres. Expats can use their credit cards to withdraw cash from ATMs.

The Danish also have a card payment system called Dankort, but expats must have a Danish bank account to use this system. It is useful to have Dankort because it is accepted across the country and some small businesses may not accept international credit cards. 

Taxes in Denmark

Expats who are tax residents of Denmark are liable to be taxed on both their local and their worldwide income. Anyone permanently living in Denmark is automatically considered a tax resident. Those who are in Denmark for six consecutive months are also considered tax residents. 

Income tax is automatically deducted from an expat’s salary. Tax rates range from 8 to 56.5 percent.