Greater Copenhagen offers competitive business costs and taxation, the most flexible labour market in the EU and a talented workforce, making it ideal for a Nordic headquarters or shared services centre.
Copenhagen is Scandinavia’s most cost-efficient capital
Business operating costs are lower in Copenhagen than in the other Nordic capitals, Stockholm, Oslo and Helsinki.
Salary levels for researchers, postdocs and other highly skilled employees such as engineers and R&D team leaders are lower than in other major cities in Northern Europe. The wage progression in Denmark is modest, resulting in competitive final salary levels for these types of employees.
The world’s lowest employer costs
Moreover, Denmark offers the world’s lowest employer costs; costs which must be added on top of salaries.
Employers in Denmark pay less than one percent (maximum 1,350 euro) per employee per year in social contributions. In Norway, employers pay 14% in social contribution costs, in Finland the rate is 23% and in Sweden the rate is 29%.
Also, office rental prices per square metre in Copenhagen are lower than in the other Scandinavian capitals. The square metre price for an office in a Copenhagen prime location is about 50% lower than in Stockholm.
The Danes are one of the most productive and hardworking workforces in Europe, across industries. Your company will benefit from excellent productivity, owing to skilled and highly motivated employees.
Register your company in a few hours
The World Bank has ranked Copenhagen the easiest place to do business in Europe from 2012-2016, and the third easiest country in the world in 2016.
Registering a company takes only a few hours once the formal practicalities are in place.
Establishing a company in Denmark is simpler, faster and more cost-efficient than establishing a branch, which usually takes several weeks.
No double taxation – great for Nordic and European expansion
In Denmark, foreign branches of a Danish company are not liable to pay tax in Denmark. No other Nordic country can offer such a favourable tax rule.
This unique tax rule makes a Danish company an ideal, cost-efficient platform for Nordic and European expansion from which to set up branches in other countries.
Europe’s most flexible labour market
Denmark offers Europe’s most flexible labour market and the second most flexible in the world, according to IMD.
Flexible hiring and firing legislation and minimum wage regulation provide supreme up and down-scaling conditions so you can adapt to market changes quickly and efficiently.
The rules around redundancy vary considerably between the Scandinavian countries. The substantial protection afforded to employees in Sweden and Finland contrasts with Denmark, where employers have significantly more freedom to act in the interests of the business.
In Denmark, the employer is free to choose who to make redundant and who to retain. The only protection for employees against unjust termination, other than discriminatory grounds, is if they have at least one year’s service, or nine months in most Collective Bargaining Agreements.
Scandinavia’s talent hub
Greater Copenhagen has Scandinavia’s largest recruitment base of highly skilled employees and privately and publicly employed researchers.
Denmark has moreover implemented a number of programmes, facilitating smooth international hires.
Fast track for key employees
Denmark offers a fast-track scheme making it easier for certified companies to bring employees with special skills or qualifications to Denmark.
Easy entry for high-wage earners
Foreigners who are offered a job with an annual salary of 375,000 DKK or more are granted easy access to the Danish labour market. There are no special requirements for educational background, occupational field or the nature of the job.
It may however be a condition that the employee obtains a Danish authorisation. For example, foreign-trained medical practitioners must obtain an authorisation from the Danish Health and Medicines Authority.
Read more about the Pay Limit Scheme.
Red Carpet programme
Denmark has launched a red carpet programme offering simplified procedures for obtaining Danish Schengen visas for applicants who travel regularly to Denmark for business purposes. Employees of accredited companies will be offered a visa fast track service.
The programme is offered to private and public companies and organisations with business partnerships in Denmark and provides the following benefits:
- Decision within three working days
- Reduced documentation requirements
- No need to apply in person
- No need for appointment
- Multiple-entry visas (valid up to five years).
Read more about the Red Carpet Programme.