Banking, Money and Taxes in Denmark
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Expats will find that managing banking, money and taxes in Denmark is an easy and convenient process.
However, 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.
Credit cards can be used throughout the country, but most small payments are made in cash. 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.