Denmark
Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in Denmark.
Foreign Ownership Eligibility
Denmark welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- No citizenship or residency requirement for any entity type
- Foreign nationals can form ApS, A/S, or IVS remotely via Erhvervsstyrelsen online platform
- No requirement to have a Danish address or local staff at formation
- All company filings can be handled electronically via virk.dk
- Founder does not need to be physically present in Denmark to incorporate
Ownership
100% Foreign OK
Formation
100% Remote
Note
Non-EU/EEA founders planning to reside in Denmark need appropriate residence permit (Start-up Denmark visa or standard work/residence permit)
Tax at a glance
Denmark Tax Overview
22% flat rate on all taxable corporate income
Corporate income tax (CIT)
Fact sheet section 2 (PwC Denmark, Feb 2026)
25%
VAT (moms) standard rate
Fact sheet section 2 (PwC Denmark, Feb 2026)
None — Denmark has single VAT rate of 25%
VAT reduced rates
Fact sheet section 2
Progressive system; top marginal rate ~52%
Personal income tax (top bracket)
Fact sheet section 2
27% (may be reduced under tax treaties)
Dividend withholding tax
Fact sheet section 2
Subject to normal 22% CIT rate
Capital gains tax
Fact sheet section 2
~0-2% (Denmark has low employer contributions compared to EU)
Social security contributions (employer)
Fact sheet section 2
Pros & cons
Advantages & Considerations
Key Advantages
Digital government infrastructure — World-class e-government system (virk.dk); fully online company formation, tax filing, and compliance; NemID/MitID digital signatures for secure authentication.
Low corruption and strong rule of law — Denmark consistently ranks #1 globally on Transparency International's Corruption Perceptions Index; stable legal system; strong contract enforcement.
Access to EU market — Denmark's EU membership provides access to 446 million consumers; free movement of goods, services, capital, and labor.
Highly skilled workforce — Excellent education system; strong English proficiency (most Danes speak fluent English); expertise in cleantech, pharma, maritime, and digital industries.
Innovation ecosystem — Strong startup culture in Copenhagen; access to venture capital; government support programs for innovation and R&D.
Quality of life — Ranked consistently among world's happiest countries; excellent work-life balance; comprehensive social welfare system; safe and stable environment.
Low employer social security contributions — Only ~0-2% employer contributions (vs 20-40% in most EU countries); however, gross salaries are high.
No residency requirement — Foreign founders can incorporate and manage company remotely; no requirement to be physically present in Denmark.
Considerations
High cost of living and doing business — Denmark is one of the most expensive countries in Europe; high salaries, office rents, and professional services; difficult for bootstrapped startups.
High labor costs — Among the highest in Europe; competitive salaries required to attract talent; strong employee protections make dismissal complex and expensive.
High personal income tax — Top marginal tax rate ~52% (combined state and municipal taxes); can deter talent relocation despite high salaries.
High VAT rate — 25% VAT with no reduced rates; increases consumer prices and administrative burden.
Complex tax and accounting rules — Danish tax system is sophisticated and complex; professional accounting assistance mandatory for most companies (adds DKK 15,000-40,000/year).
Language barrier — While most Danes speak excellent English, official documents and government correspondence are often in Danish; Danish language skills helpful for local business relationships.
Non-Eurozone currency — Denmark uses DKK (not EUR); companies trading in Eurozone face currency exchange risk; pegged rate provides stability but not full Euro benefits.
Small domestic market — Population of only 5.9 million; limited domestic market size; companies often need to expand internationally early.
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Reserve company name
Prepare articles of association
File online via virk.dk
Receive CVR number
Tax registration
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Denmark has high labor costs and strict employment regulations. Professional accounting assistance is strongly recommended due to complex tax and VAT rules. Annual compliance costs are significant (DKK 15,000-40,000+).
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Denmark setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? YES.
Banking options for non-resident founders in Denmark. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| Danske Bank | Traditional bank | Low (Visit Required) | 5-10 business days (traditional banks); 2-5 days (fintech) • DKK 100-500 (business accounts; varies widely by bank and services) • DKK 0-10,000 (varies by bank; many require initial deposit) • CVR certificate, Articles of association (vedtægter), Director ID and proof of address, Business plan (sometimes required) • SWIFT, SEPA (via EUR conversion), domestic transfers (Betalingsservice), cards, MobilePay |
| Nordea Denmark | Traditional bank | Low (Visit Required) | 5-10 business days (traditional banks); 2-5 days (fintech) • DKK 100-500 (business accounts; varies widely by bank and services) • DKK 0-10,000 (varies by bank; many require initial deposit) • CVR certificate, Articles of association (vedtægter), Director ID and proof of address, Business plan (sometimes required) • SWIFT, SEPA (via EUR conversion), domestic transfers (Betalingsservice), cards, MobilePay |
| Jyske Bank | Traditional bank | Low (Visit Required) | 5-10 business days (traditional banks); 2-5 days (fintech) • DKK 100-500 (business accounts; varies widely by bank and services) • DKK 0-10,000 (varies by bank; many require initial deposit) • CVR certificate, Articles of association (vedtægter), Director ID and proof of address, Business plan (sometimes required) • SWIFT, SEPA (via EUR conversion), domestic transfers (Betalingsservice), cards, MobilePay |
| Sydbank | Traditional bank | Low (Visit Required) | 5-10 business days (traditional banks); 2-5 days (fintech) • DKK 100-500 (business accounts; varies widely by bank and services) • DKK 0-10,000 (varies by bank; many require initial deposit) • CVR certificate, Articles of association (vedtægter), Director ID and proof of address, Business plan (sometimes required) • SWIFT, SEPA (via EUR conversion), domestic transfers (Betalingsservice), cards, MobilePay |
| Nykredit | Traditional bank | Low (Visit Required) | 5-10 business days (traditional banks); 2-5 days (fintech) • DKK 100-500 (business accounts; varies widely by bank and services) • DKK 0-10,000 (varies by bank; many require initial deposit) • CVR certificate, Articles of association (vedtægter), Director ID and proof of address, Business plan (sometimes required) • SWIFT, SEPA (via EUR conversion), domestic transfers (Betalingsservice), cards, MobilePay |
| Revolut Business | Fintech | High (Remote) | 5-10 business days (traditional banks); 2-5 days (fintech) • DKK 100-500 (business accounts; varies widely by bank and services) • DKK 0-10,000 (varies by bank; many require initial deposit) • CVR certificate, Articles of association (vedtægter), Director ID and proof of address, Business plan (sometimes required) • SWIFT, SEPA (via EUR conversion), domestic transfers (Betalingsservice), cards, MobilePay |
| Wise | Fintech | High (Remote) | 5-10 business days (traditional banks); 2-5 days (fintech) • DKK 100-500 (business accounts; varies widely by bank and services) • DKK 0-10,000 (varies by bank; many require initial deposit) • CVR certificate, Articles of association (vedtægter), Director ID and proof of address, Business plan (sometimes required) • SWIFT, SEPA (via EUR conversion), domestic transfers (Betalingsservice), cards, MobilePay |
| N26 | Fintech | High (Remote) | 5-10 business days (traditional banks); 2-5 days (fintech) • DKK 100-500 (business accounts; varies widely by bank and services) • DKK 0-10,000 (varies by bank; many require initial deposit) • CVR certificate, Articles of association (vedtægter), Director ID and proof of address, Business plan (sometimes required) • SWIFT, SEPA (via EUR conversion), domestic transfers (Betalingsservice), cards, MobilePay |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Corporate income tax return | Ongoing | Due by November 1 (for companies with fiscal year ending December 31) |
VAT declaration (moms) | Ongoing | Quarterly or monthly (if turnover > DKK 50M); filed electronically via virk.dk |
Annual financial statements | Ongoing | Must be filed with Erhvervsstyrelsen within 5 months of fiscal year-end |
Annual report (årsrapport) | Ongoing | Required for all ApS and A/S companies; filed electronically via virk.dk |
Payroll tax (A-skat) | Ongoing | Monthly if employees; employer withholds and remits to SKAT (tax authority) |
Record retention | Ongoing | Tax records, invoices, contracts must be maintained for 5 years |
Audit requirements | Ongoing | Mandatory for A/S; optional for ApS unless exceeds thresholds (revenue, assets, employees) |
CVR annual update | Ongoing | Update Central Business Register if company details change (directors, address, capital) |
Frequently Asked
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