Banking, Money and Taxes in Denmark

Managing banking, money and taxes in Denmark is an easy and convenient process. While the country's highly developed financial infrastructure is a definite plus, expats will need to budget carefully, as Denmark has one of the highest tax rates in the world, not to mention a high cost of living. That being said, taxes fund the country's exceptional social services, resulting in a high quality of life for all who live here.

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: DKK 50, DKK 100, DKK 200, DKK 500, and DKK 1,000 
• Coins: 50 øre, DKK 1, DKK 2, DKK 5, DKK 10, and DKK 20 

Banking in Denmark

Banking in Denmark is sophisticated and efficient. Most banks offer online banking, which makes paying bills and making transfers easy and convenient. The main banks in Denmark are Danske Bank, Nykredit and Nordea.

Opening a bank account

To open a bank account in Denmark, expats must first apply for and obtain a CPR (Central Person Register) Number. Expats can easily find their CPR number on their yellow health card.

You can begin your application process online and present your yellow health card at your nearest bank, but some banks allow residents to complete the entire process online. Additionally, expats must present a valid photo ID via their passport or ID and proof of address in Denmark. 

New arrivals will need to open a NemKonto, which is used for salary and government payments such as tax refunds. All residents in Denmark must have a NemKonto.

ATMs and credit cards

As is the case in most developed and modern economies, Denmark has a largely cashless society, where card and mobile payment methods are popular, particularly in urban areas.

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 it. Dankort is useful 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 worldwide income. Anyone permanently living in Denmark is automatically considered a tax resident, as are those who have been in Denmark for six consecutive months. 

Income tax is automatically deducted from an expat’s salary. Tax rates range from zero to 52 percent. As expat tax matters can be fairly complex, new arrivals to Denmark should seek advice from qualified tax practitioners with experience handling foreign tax issues.