Facts about doing business in Copenhagen
Did you know that Greater Copenhagen is a very competitive business location? Here is what our clients appreciate most about doing business here.
Business operating costs are low
Copenhagen is 15-20% cheaper than Stockholm in terms of salaries, social contributions and office rent when comparing the total costs of a business operation such as a Scandinavian headquarters or a shared services centre.
Corporate tax is below EU and OECD level
Denmark's corporate tax is 22%, which is below the average OECD and EU level.
Uniquely, there is no double taxation. In Denmark, foreign branches of a Danish company are not liable to pay tax in Denmark – no other Nordic country can offer such a tax rule.
Denmark also offers attractive tax schemes for foreign researchers and key employees.
Finding the right employees is easy
In Greater Copenhagen you will get access to Scandinavia’s:
- Largest recruitment base of highly-skilled employees.
- Biggest pool of private and publicly employed researchers.
Copenhagen Capacity can moreover help you attract international talent to your business in Greater Copenhagen.
Employee costs are very competitive
Staff costs in relation to PhDs, researchers and other highly educated employees in Denmark are very competitive.
Denmark has Europe’s lowest social contribution rate paid by the employer. Employers only pay social contributions corresponding to a fixed amount of EUR 1,350 per employee per year.
The market offers access to 100 million consumers
Greater Copenhagen links continental Europe, Scandinavia and the Baltic countries, providing access to 25 million Scandinavians and the North European market of 100 million consumers within 24 hours.
Denmark is also renowned for its R&D and as a leading test market for ICT, cleantech, smart grid and smart city solutions.
- The four Nordic countries form one of the world’s wealthiest regions with GDP per capita set to increase by 80% by 2050.
- With exports making up 33.7% of GDP (2014), Denmark is the export leader in the Nordics.
- When the Baltic states are included, the UK’s export to the Nordic countries is equal to Britain’s export to all of the BRIC markets (2014).
There are no language barriers
Nine out of 10 Danes speak English, and 6 out of 10 Danes speak German.
It is easy to get a residence & work permit
Denmark has a green card scheme under which a residence and work permit is issued on the basis of an individual evaluation based on a point system.
In 2015, Denmark introduced a fast-track scheme making it easier for certified companies to bring employees with special skills or qualifications to Denmark.
Different residence and work permit rules apply to EU/EAA/Swiss citizens and to citizens from outside the EU/EAA. Our partners can tell you all you need to know.
Many incentives for foreign investors
Denmark has comprehensive funding programmes and financial incentives focused on research & development (R&D) as well as attractive tax rules in relation to R&D.
Particular funding is also available in biotech, pharmaceuticals, medico, life sciences, environment, energy, ICT, food, agriculture and transportation.
We can help you get an overview of your opportunities.