Banking and finances
If you are planning to move to Denmark, there are several things that you should know about before you leave. One very important aspect is your financial situation.
1. Day-to-day finances
When you move to Denmark from another country, one of the first things you will need is a bank account into which your salary can be paid and a payment card that you can use for day-to-day spending and travelling. Perhaps you and your family will need more accounts, such as a groceries account or a savings account, for which several cards can be issued.
To open a bank account, you must usually be able to produce various documents such as your passport, health insurance card (‘sundhedskort’) and employment contract. In addition, you must have a residence permit if you come from a country other than the Nordic countries, EU/EEA countries and Switzerland.
The most widely used cards, which are accepted by most shops and merchants, are Visa/Dankort and Mastercard. They are also widely accepted in other countries.
The Dankort part of the Visa/Dankort card is the national payment card in Denmark. It is a debit card, and the money is typically charged to your account shortly after you have paid using the card.
2. Danske eBanking and Danske Mobile Banking
The best way to get an overview of your finances is to use Danske eBanking and Danske Mobile Banking. With these applications, it is easy and simple to manage your accounts. Regardless of whether you are at home or on the move, you can always check balances, transfer money and pay bills. You can also track your investments and check your home loans.
Dealing with fixed expenses such as rent is easy if you register them for Betalingsservice (direct debit), which means that they are paid automatically. Then you will no longer have to remember to do it yourself. You can register bills for direct debit in Danske eBanking.
The Danish welfare society is financed by taxes, and the tax burden is thus relatively high in Denmark. All those who have a certain income level pay income tax. The rate at which your income is taxed depends on how much you earn. As a general rule, most persons who work in Denmark pay around 40% in income tax.
If you come to Denmark as a researcher or a highly paid employee, for example, you may opt for a special tax scheme that offers a lower tax rate. Please contact SKAT (the Danish tax authorities) for more information about the scheme.
If you purchase or have a car in Denmark, you must be aware that you have to pay various duties.
It may be a good idea to talk to a tax consultant specialising in international taxation, as the rules are often complicated. This applies to income tax as well as any pension and investments you have when you move from one country to another.
Maybe you want to invest some of your money while living in Denmark. Whether you plan to invest small or large amounts, you must be aware of the taxation that applies when you leave Denmark again. The rules may be complicated, and it may be a good idea to talk to an investment adviser or a tax expert about your investments and investment plans, so that you get the most out of your investments.
When you move between Denmark and another country, as a Danske Bank customer, you can get specific advice about your finances. There is no extra charge.