How To Open A Bank Account In Denmark [ Complete Process]

If you are planning to move to Denmark, then you will need to open a bank account to help you manage your finance and below is how to go about this.
Ketcha Brandon
Open a Bank Account in Denmark

Denmark is an amazing nation to live in with a lot of cultures and great places to visit, it is of no doubt one of the best countries in the European continent. So with that said, if you have plans  of moving to Denmark, you will surely have to open a bank account in Denmark.

The nation of Denmark has been rated as one of the happiest places to be on the globe. More to that, it also features among the countries with the safest banking systems in the world with very low fees and for that reason, the nation of Denmark is one of the best choice for Expats.

Financial services is important of all organizations no matter the size, therefore choosing the right bank for your organization can be very crucial for your financial success with your company.

Incase you are a student planning to move to Denmark, you will surely need to have an idea about the best banks in the country especially for students. Many banks understand that students do not have much to offer in terms of documentation so for this reason they often facilitate your account opening.

With all that said, regardless of whether you plan to move to Denmark or you are a student or a CEO that wants to open a bank account in Denmark, this article is for you as it browses you through the best way you can use to open a bank account in Denmark as a resident, non resident ( without CPR), as an entrepreneur and even as a student.

Table of Contents

The Banking System in Denmark

Having adequate knowledge on Danish banking systems can be very important to you especially if you open an organization in the country as it will help make sure that your business operates well on the financial basis.

It is necessary to say that Denmark has one of the most secured banking systems in the European continent and local banks charge of the lowest costs associated with bank account opening, administration and withdrawal fees.

However this low fee charge for opening accounts unfortunately only applies to those opening a personal or corporate account in Denmark. This also means that individuals can open a savings or deposit account while companies or business units can on their side open merchant Danish bank accounts.

This merchant account is especially helpful to companies that offer e-commerce services since it facilitates them to be able to accept debit card and credit card payments.

You are able to open this account after you have finished with the step of setting up the company in Denmark and the share capital has been deposited into the regular bank account of the company.

The merchant account is going to be put in place via the help of a business partner who will facilitate the communications un the electronic payment transactions. As an investor, you have to put in mind that charges will apply even though the benefits of accepting electronic payments may outweigh the costs.

What do you need to Open a Bank Account in Denmark?

As long as you are above the threshold mark of 18 years of age and having a residence permit, then you can open a Danish bank account even expats. The process is not complicated as compared to banks in other countries but you will have to check the requirements of each bank but you will surely need the following documentation in order to open a standard bank account in Denmark. 

  • Photo ID- This can be a passport or a national identity card but in most cases, a bank may require certified copies of it. 
  • CPR Number (CPR- numer or personnummer)- This refers to a unique 10 digit personal identification number for everyone living in Denmark and you often get a CPR number when you apply for residence. Note that there is a high possibility that you might not be able to open a bank account in Denmark without a CPR number. 
  • Proof of employment- You are going to be prompted to show up with your employment contract or proof of registration or enrollment proof for those that are students. 
  • Proof of Address in Denmark- Most banks often accept utility bills (no more than 3 months), or a rental card or better still a health insurance card as proof of address. 
  • As some banks in every country, some banks in Denmark will require you to pay some money as a minimum opening deposit before they can open your bank account. ;

What to Know Before Opening a Bank Account in Denmark 

Denmark is a European nation that is widely known for its strong financial system even though its banks are also well known for their red tape and high fees. This simply means that it is an amazing idea for your to check out all the options available, from national or international banks to fully digital banks, when setting up a bank account in Denmark. 

Banking Fees and Charges 

One of the key factors when choosing a bank is to take a good look on its fees as some banks may require an opening deposit, but most do not charge a fee to open a bank account. But even if the banks do not charge any opening fee, you might some fees such as; 

  • Withdrawal fees- Should in case the bank you have chosen do not have a lot of ATMs in around your area, you will find yourself being charge high fees for using machines from other banks. 
  • Currency Transfers- Here comes another feature that can be particularly expensive and you have to be especially more careful  if you are been paid in a currency other than the Danish Krone(DKK) 
  • Monthly Service Commissions or Fess- This refers any cost that is associated with maintaining your account and you using your debit card or credit card. 

Most Danish financial institution bills will include a Dankort—the countrywide debit card—and may generally handiest be utilized in Denmark.

Be certain to affirm your alternatives for signing into your account from outdoor the united states and request get entry to immediately, as it is able to take numerous weeks to receive.

It is likewise essential to consider the languages of the financial institution's service. Some banks in Denmark provide guide offerings in English—however, it is really well worth confirming that they provide different languages.

Make certain to request your files within side the language of your choice, in any other case they'll mechanically be processed in Danish.

Types of Banks in Denmark 

The sector which is in charge for banking in Denmark massively focuses on several major market players and the country's 2 largest banks have a combine market share of around 70% or more than. 

It has been noticed that foreign banks in Denmark are primarily intended for large companies and multinationals even though some of them have changed this strategy in recent years and now also provide personal loans. Below I will provide you with the 4 major banks in the country Denmark. 

Danske Bank - Ideal bank for Students and Dummies

Here is one of the largest banks that operate in the territory of Denmark and it occupies the whole Scandinavian and Baltic Region. This banks offers specialized products for students and young people alongside a variety of accounts with specific advantages such as monthly cashback.

Danske bank offers its clients with online banking in English ( which is something that most Danish banks do not offer) and this is a distinct advantage if your Danish is not up to part. 

Nordea Bank - Ideal Bank for Expats, students, organizations

Similar to Danske Bank, Nordea is another large bank that serves the whole region. This banks offers individuals with a full range of banking products and even though their website is not entirely in English, you are able to request to be called back in English so to discuss what you need from a new account. 

Nykredit Bank - Best Bank Offering Online Banking Options

This is a giant financial situation that has been functioning in Denmark for the past 150 years and it provides a whole range of financial products, from banking to insurance including real estate.

If you are the type who is fun of online banking via an app, then Nykredit is the best option for you as the have won numerous award for their online and app based banking option. 

Sydbank

Sydbank is a widely known bank in Denmark and also in Germany and the number of branches that it in these 2 nations speak for itself. More to that this is one of the bank that contributes mostly to philanthropic projects and they they offer a wide range of banking products with a over 115 branches that they have. 

Due to their numerous bank staff willing and able  to speak English also offering online chat or phone services that will help answer quick queries, opening a bank account in Denmark should be quite easy. 

Can I Open a Bank Account in Denmark from Abroad?

Incase you are the owner of an account at a large international bank, it is often necessary to verify if the bank also operates in Denmark and if they do operate there, then transferring to a Danish account could be a fairly straightforward process.

With Danske bank, you will be provide with the process of starting the account application process online or directly from your mobile or desktop device even though finalizing the process will depend on some circumstances as you will be prompted to visit a branch upon arrival to show your documents.

Note that all accounts do not come with an online application so it is often necessary to consider going through the little print if you consider it necessary.

Can I Open a Danish Bank Account As a Non Resident?

Denmark is a European nation with a robust banking system and unlike other countries around the globe offering banking services with no much documentation, Danish banks are known to be strict when it comes to documentation.

Well the fact that you can open a bank account in Denmark requires you to have a CPR number and this CPR number is being issued only to residents of the country- meaning that you cannot open a bank account in Denmark as a non resident of the country.

If you planning to move to the country and want to setup a bank account before arriving the country, you can start the online application process and then show up with your CPR card in person once you arrive the nation.

It is often important to consider the fact that with Danish banks is that if you are in search for all security services and features of traditional bank, you must go for a bank with a complete banking license instead of an e-money license.

The Nemknonto Account in Denmark

Residents of Denmark of more than 18 years of age must have a NemID or Nemkonto account also known as "Easy account". This is a designated bank account to receive payments directly from public authorities such as tax refunds, pensions and student loans.

It is of no doubt that all banks in the nation Denmark are familiar to this concept but it is up to you to let them know that you want to assign your account as Nemkonto when you open your Danish bank account.

The bank can assist you in setting up the account yourself or open one for you directly.

Best Online Banks in Denmark

Though many traditional banks in Denmark offer full online banking services, including Sydbank, Nordea, Nykredit, and others, there are many financial institutions that focus on the virtual banking system.

The following are the best online banks in Denmark that have been voted for and rated for their online banking services in Denmark:

  1. N26 
  2. Revolut 
  3. Bunq 
  4. Monese

Best Danish Banks For Students

It can be extremely difficult for students to establish themselves financially in a foreign country such as Denmark. Most Danish banks recognize that students have little to offer in terms of paperwork and will gladly assist them in opening a bank account in Denmark.

Below are the best banks in Denmark for students;

  • Sydbank
  • Jyske Bank
  • Arbejdernes landsbank
  • Nordea
  • Nykredit
  • Danske 

How to Open a Bank Account in Denmark Online

In order to brief out the steps to open a bank account in Denmark Online, below is a list of your requirements.

1. Compile your Documents

You will have to get your documentation ready in  order to open a bank account from online banks in Denmark.

2. Choose your Danish Bank

You have to make sure that the bank offers what you want and that the fees are affordable too before you can choose your Danish bank.

3. Apply for an Account

Once you have selected the bank that suits you best, you will have to go to the online platform of the bank and follow the necessary steps to open an account with them.

Final Thoughts on How to Open a Bank Account in Denmark

Denmark has strong banking systems, and their banks will require you to fill out paperwork that other banks in neighboring European countries will do as well. As a result, if you were unable to open a Danish bank account, opening a SEPA bank account could be a great alternative for you.

Before opening a bank account in Denmark, whether you are an Expat, a business owner, or a student, you should check the fees for each bank before engaging with them.

Frequently Asked Questions

Can foreigners open bank account in Denmark?

Only residents and citizens who are liable to pay taxes in Denmark can open a Danish bank account. In other words, you need a Danish CPR number, which is a government tax identification number, in order to open a bank account in Denmark.

Why is it so hard to open a bank account in Denmark?

Denmark is known for its robust financial system, yet their banks also have a reputation for hefty paperwork and high fees. This means that it's a good idea to check out all available options—from domestic or international banks to fully digital ones—when you set about opening a bank account in Denmark.

Which bank is best in Denmark?

Arbejdernes Landsbank. Danske Bank. Handelsbanken. Nordea Bank Danmark. Nykredit.

Can I open a bank account if I am a foreigner?

In most cases, a non-U.S. citizen cannot open an account online. Instead, you'd need to visit a branch for a bank or credit union to open an account. Santander Bank, for example, accepts online applications only from U.S. residents or resident aliens who have a Social Security number or ITIN.

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