When you are moving to Denmark
When you move to Denmark from another country, there are various things you need to consider and get an overview of. Otherwise, you and your family may face unexpected consequences – especially financially.
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1. Insurance policies
Insurance policies give you and your family peace of mind in your everyday life. It is good to know that financial help is at hand if you are unlucky, for example in the event of burglary, fire or if one of you is injured. It is also a good idea to be insured against causing personal injury to others or damage to the property of others. Most insurance policies are taken out on a voluntary basis. However, some are compulsory, including
- third-party liability insurance covering injuries to third parties if you own a vehicle
- third-party liability insurance covering injuries to third parties if you own a dog
- compulsory industrial injuries insurance if you are an employer
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2. Health and national health insurance
When you live, work and pay tax in Denmark, you are also covered by the national health insurance scheme. You must have a health insurance card (‘sundhedskort’), which entitles you to medical care, examinations, treatment and hospitalisation if you or a family member need it. It is free and financed by the public sector. To obtain a health insurance card and be covered by the national health insurance scheme, you must register with the Danish Central Office of Civil Registration and get a CPR (civil registration) number.
Some healthcare services, such as dental treatment, psychological treatment, glasses and physiotherapy, you must pay for yourself. Child dental care, however, is also covered by the national health insurance scheme.
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3. Pension
Pay attention to your choice of pension scheme when you come to Denmark to work.
There are two types of pension schemes in Denmark:- Scheme with deductible payments – payouts are taxed. We recommend this scheme if you want to live in Denmark for an extended period and you do not need to have your funds paid out to you if you leave Denmark.
- Scheme with non-deductible payments – payouts are tax-free. This scheme is generally a good idea in two cases:
1) If you pay less than the standard Danish tax rate on your salary, that is, a labour market contribution of 8% and then 27% in income tax.
2) If you are staying in Denmark for only a short period of time and will terminate your Danish pension scheme when you leave.
The rules are complicated, and there are many aspects to consider. You should always consult an adviser, so that you set up the pension scheme that suits your circumstances the best.
