A high standard of living and a thriving economy make Denmark an attractive location for expatriates. Many people are relocating north on a permanent basis despite the cosmopolitan city culture and industry demand for qualified labor in this tiny nation of less than six million inhabitants.
In order to embrace the relaxed Scandinavian way of life upon relocating to Denmark, one must obtain a bank account. There, life can be quite thrilling, but it is certainly not inexpensive. What is essential information to commence?
What documents do I need to open a bank account in Denmark?
Establishing a bank account in Denmark is a relatively uncomplicated process, albeit necessitating the presentation of a set of mandatory documents, including some that require notarization. Please verify the bank’s policy regarding this matter prior to your visit to the branch.
There are instances in which account opening incurs a fee, such as when non-EU/EEA students establish a specialized student account. However, creating an account should not typically incur any fees.
To establish a standard account, you must provide:
- A photo identification document, such as a passport. Certain financial institutions demand that a duplicate of this document be notarized.
- The ten-digit CPR Number serves as a unique identifier for every inhabitant of Denmark.
- In Denmark, banks will typically take recent utility bills or a rental agreement as proof of address. Additionally, your health insurance card may serve as verification of your registered address if you possess one.
- Documentation such as an employment contract if you are currently employed or proof of university enrollment if you are a student.
- Certain financial institutions require a minimum opening deposit amount in order to initiate the account-establishing process.
There may be additional requirements for certain accounts, such as income verification. You may establish at least a basic bank account, provided you possess a CPR number (issued to EU citizens upon registration and to others upon receipt of a residence permit).
Can I open a bank account from abroad?
It is prudent to verify whether a sizable international bank operates in Denmark if you have an account with that institution. If they do, the procedure of transferring funds to a Danish account may be relatively straightforward.
Danske Bank provides customers with the option to initiate the account application procedure via telephone or online. Your circumstances will determine whether or not you are able to complete the application in its entirety; you may be required to present your documents at a branch upon your arrival. If this is a deal-breaker for you, consult the fine print as not all accounts provide online application capabilities.
Can I open a bank account as a non-resident?
After becoming a resident of Denmark, an individual is issued a CPR number, which is required to establish a bank account. You are therefore ineligible to create an account as a non-resident. If you are planning a transfer to Denmark and wish to begin the application process prior to your arrival, it may be possible to do so online and subsequently present your CPR card in person upon your arrival.
Which bank should I choose?
With an extensive selection of domestic and foreign institutions, Denmark’s banking system is robust and secure. You have two options: select one of the prominent domestic banks provided below, or potentially relocate an existing account from a global bank to their Danish branches.
The fact that the majority of bank websites list their information and terms and conditions in English facilitates account comparison.
Four prominent national banks are enumerated below to assist you in locating the most suitable institution for your requirements:
- Danske Bank: Danske Bank, which serves the entire Scandinavian and Baltic Region, is one of the main financial institutions in Denmark. In addition to specialized products designed for the needs of students and young individuals, the establishment provides an assortment of accounts that include distinct benefits, like monthly cashback. Danske Bank, unlike other Danish banks, provides online banking services in English. This is a significant benefit for those whose Danish proficiency is limited.
- Nordea: Nordea, an additional major bank that serves the entire region, provides an extensive selection of banking products. Despite the fact that their website is not entirely in English, you may request an English-language phone call to discuss your new account requirements.
- Nykredit: Nykredit is a massive financial services institution with over 150 years of experience in Denmark. They provide an extensive selection of financial products, including insurance, real estate, and banking. If you prefer online banking through an application, this bank may be the one for you; their online and app-based banking options have won multiple awards.
- Sydbank: Sydbank, which operates in Denmark and Germany, is a comprehensive financial institution. In addition to operating 115 branches and providing an extensive array of banking products, they make substantial contributions to philanthropic endeavors.
In Denmark, establishing a bank account should not be too difficult. Bank employees are generally proficient in the English language and provide online messaging or phone services to address brief inquiries. As per customary banking practices in Denmark, branches will be closed on weekends. However, on Thursday evenings, operating hours will be marginally extended. Consider this when seeking guidance regarding the initiation of your account.
Banking fees and charges
It is crucial to peruse the fine print when opening a bank account in Denmark, particularly with regard to banking fees and charges.
Certain financial institutions impose recurring fees for account maintenance and credit or debit card usage. Additionally, withdrawing cash from ATMs operated by distinct banks might incur a fixed fee. While typically nominal in nature, these fees and charges accumulate gradually.
Additionally, be wary of exorbitant transfer fees if you frequently switch funds between accounts that utilize distinct currencies. This can pose a significant obstacle if one receives income in a foreign currency and is required to convert it in order to cover daily expenses in Denmark.
It is expensive to transfer currency across national frontiers using a bank. In addition to a transaction processing fee, the bank’s profit will be factored into the exchange rate.