When you are moving to Denmark as a foreigner to work, study, or establish a life with your significant other, one of the first practical steps you’ll need to get familiar with is banking in Denmark. In other words, you’ll have to take the steps of setting up a bank account.
Here’s what we will cover in this comprehensive article about banking in Denmark:
- Importance of a Danish Bank Account: Having a bank account is essential in Denmark for receiving salary, paying rent, using MobilePay, and managing daily expenses, while avoiding extra foreign transaction fees.
- Requirements to Open a Bank Account in Denmark: Key documents include a CPR number, valid ID, proof of address, proof of employment or study, and, for non-EU/EEA citizens, a residence permit.
- Challenges for Foreigners in Danish Banking: Foreigners may face delays due to missing documents, language barriers in digital platforms, and lack of Danish credit history, which can affect accessing credit or overdraft facilities.
- Internet Banking and Digital ID in Denmark: Denmark’s banking system is highly digitized, with secure internet banking powered by MitID, offering 24/7 management of finances through user-friendly platforms and mobile apps.
- Banking for Businesses and Students in Denmark: Business owners need to meet specific legal and documentation requirements to open corporate accounts, while students benefit from specialized accounts with lower fees and benefits, requiring proof of enrollment and CPR number.
Contents
- Why you need banking in Denmark
- What You Need to Open a Bank Account in Denmark
- Challenges Foreigners May Face Regarding Banking in Denmark
- Internet Banking in Denmark
- Banking for Businesses in Denmark
- Student Bank Accounts in Denmark
- Next Steps: Choosing the Best Bank in Denmark for Foreigners
- FAQ About Banking in Denmark for Foreigners
Why you need banking in Denmark
In Denmark, having a bank account is important, whether it’s to receive your salary, pay rent, use MobilePay, or simply to manage daily expenses and to avoid paying extra fees when you are using a foreign card in Denmark. However, for many newcomers, banking in Denmark can seem complex and unfamiliar, which is why I have created this guide.
This guide is here to help you understand how banking in Denmark works and what to expect from local financial institutions. You can use it whether you’re planning a long-term stay or just getting settled in Denmark, as it covers the basics of banking in Denmark and will help you feel confident and prepared to what you might meet here.
If you are looking for more detailed guides on how to choose the right bank in Denmark or find the best bank loans for foreigners, you may want to check out our other guides, where we cover these topics in detail:
- The Best Bank in Denmark for Foreigners
- The Best Bank Loan in Denmark for Foreigners
- The Best Mortgage Loan in Denmark for Foreigners
- The Best Credit Card in Denmark for Foreigners
- The Best Stock Trading Apps in Denmark for Foreigners
What You Need to Open a Bank Account in Denmark
Banking in Denmark and opening a bank account is generally straightforward once you have the necessary documentation. For foreigners, however, delays can occur if key documents, like a CPR number, are not yet in place.
Below are the most common requirements to open a personal Danish bank account.
CPR Number (Personal Identification Number)
The CPR number is the cornerstone of most administrative processes in Denmark, including banking. Most Danish banks will not open an account for you without it. You receive your CPR number after registering your address with your local municipality (kommune) once you arrive in the country. This process is typically referred to as obtaining a “civil registration.”
Valid Passport or National ID
You will need to present a valid passport as proof of identity. EU/EEA citizens may be able to use their national ID cards instead. Some banks require in-person verification, while others offer digital identity checks.
Proof of Danish Address
Banks are legally required to confirm your place of residence in Denmark. This is typically done using a rental contract, housing confirmation letter, or a recent utility bill. In some cases, an official residence certificate (bopælsattest) from the municipality may also be accepted.
Documentation of Employment or Study
Many banks request proof that you are either employed in Denmark or enrolled at an educational institution. This helps them understand your financial situation and your legal right to reside in the country.
Residence Permit (for Non-EU/EEA Citizens)
If you are from outside the EU/EEA, you may need to present a valid Danish residence permit or visa. The exact requirements can vary between banks.
Challenges Foreigners May Face Regarding Banking in Denmark
While Denmark’s banking system is efficient and secure, we have often heard that foreigners face some initial challenges when trying to open and use a bank account. Some of the most frequent challenges are those below:
Delays Due to Missing Documents
The most common reason for delays is the lack of a CPR number or registered address. Since both are essential for opening an account, newcomers often experience a waiting period before they can access full banking services.
Language Barriers
Although most Danes speak English, not all banking websites or apps are available in English. This can make it difficult to understand the fine print or navigate digital platforms. Honestly, some banks are more foreigner-friendly than others, so it’s worth researching or choosing a bank known for international service.
In our guide Best Banks for Foreigners in Denmark you can learn more about the banks that are available in English.
Credit History
As a newcomer, you will not have a Danish credit history. This can make it more difficult to access overdraft facilities, credit cards, or loans, at least in the beginning. Building trust with your bank over time — by demonstrating a stable income and financial reliability — can help.
You can read more about finding the best credit card in Denmark here.
Internet Banking in Denmark
As you may already have sensed, Denmark is a highly digitized society, and internet banking is the standard for managing personal finances. Almost all daily banking tasks, from checking balances and transferring money to paying bills and setting up standing orders, are performed online or via mobile apps.
The backbone of secure internet banking in Denmark is MitID, the national digital ID that enables secure login and transaction approval across banking platforms and public services. All major Danish banks offer robust and user-friendly online banking portals and mobile applications, many of which are available with English interfaces.
This digital convenience allows you to manage your money 24/7, regardless of where you are, making banking incredibly efficient and largely eliminating the need for physical branch visits for routine transactions. Digital-first banks like Lunar exemplify this trend, as it offers a completely app-based banking experience.
Banking for Businesses in Denmark
Are you an entrepreneur in Denmark? Opening a business bank account in Denmark is an important step for foreign entrepreneurs and companies looking to establish a presence in the country. The process, while similar to personal banking in some aspects, has specific requirements based on the legal structure of your business.
We’ll take you through them here as it’s important to understand the key requirements and documentation needed to establish a business bank account in Denmark.
Key Requirements for Business Bank Accounts
| Requirement | Description |
|---|---|
| Danish CVR number | The company’s official business registration number, issued by the Danish Business Authority (Erhvervsstyrelsen). Mandatory for opening a business account. |
| Company registration documents | Depending on your company type (e.g., ApS, A/S, enkeltmandsvirksomhed), you must provide articles of association, shareholder registers, and other legal documents. |
| Proof of identity for owners/directors | Valid photo ID (e.g., passport) for all beneficial owners, directors, and authorized signatories. CPR number is required if they reside in Denmark. |
| Business address in Denmark | Your company must have a registered address in Denmark to open a bank account. |
| Business plan/purpose | A brief description of your business activities, goals, and expected transaction volumes. Required to meet anti-money laundering (AML) compliance. |
| MitID Erhverv (Business MitID) | Required for secure digital interactions with banks and authorities. This is a digital ID specifically for businesses. |
| NemKonto for businesses | A mandatory designated bank account used to receive payments from Danish public authorities, such as VAT refunds or subsidies. Usually your main business account. |
Important Considerations for Businesses
- Compliance: Danish banks are strict about compliance with AML and KYC (Know Your Customer) regulations. Be prepared for thorough checks and provide all requested documentation promptly.
- Timeframe: Opening a business bank account can take longer than a personal account, especially for newly established companies or those with complex international structures. Start the process early.
- Advisory services: Leverage the expertise of the banks’ business advisors, especially if you’re new to the Danish market. They can offer valuable insights into local regulations and financial practices.
Student Bank Accounts in Denmark
For international students moving to Denmark, managing finances efficiently is key to a smooth academic journey. While most standard bank accounts will suffice, some banks offer special student packages or benefits designed to meet the unique needs of those in higher education. These often include lower or no monthly fees, and sometimes preferential conditions on certain services.
To open a student bank account, you will still primarily need your CPR number and proof of enrollment from your Danish educational institution. Major banks like Danske Bank, Nordea, and even digital-only options like Lunar are popular choices among students, with some providing dedicated advisors or online resources tailored for young adults and students. It’s always advisable to compare offerings, as some banks might also offer higher interest rates on savings or specific card benefits for student customers.
Next Steps: Choosing the Best Bank in Denmark for Foreigners
Now that you have an overview of how banking works in Denmark, the next step is choosing a bank that fits your needs. Some banks are more flexible and user-friendly for newcomers, while others are better suited for students, freelancers, or salaried professionals.
We have created a detailed guide to help you compare the top options:
If you’re also looking to borrow money, you may find our comparison of loan options helpful:
By taking the time to understand the system and choosing the right financial partners, you’ll set yourself up for a smoother, more secure experience in Denmark.
FAQ About Banking in Denmark for Foreigners
Can I Open a Bank Account Without a CPR Number?
While most Danish banks require a CPR number, a few international or online banks — such as Wise or Revolut — may allow you to open an account without one. These can serve as short-term solutions but do not replace a proper Danish bank account. Without a CPR, you cannot use MobilePay or register your account as a NemKonto, which are essential for daily life in Denmark.
What is MitID?
MitID is Denmark’s digital ID solution and it’s essential for accessing most Danish digital services, including online banking, government websites (e.g., borger.dk, skat.dk), and even some private sector services.
How Does MitID Work?
MitID uses either an app on your smartphone/tablet, a code display, or a code reader to generate unique codes for secure login and transaction approval.
How Do I Get MitID?
Once you have your CPR number and a Danish bank account, your bank will usually guide you through the process of setting up MitID. It’s an indispensable tool for life in Denmark.
What is NemKonto?
NemKonto is a mandatory system in Denmark. It’s a regular bank account that you designate as your primary account for all payments from Danish public authorities (e.g., tax refunds, social security benefits, student grants, child benefits).
Why Do I Need a NemKonto?
If you are going to receive any payments from the Danish government, you must have a NemKonto.
How Do I Set Up a NemKonto?
When you open a Danish bank account, the bank will typically help you designate it as your NemKonto. If you have multiple Danish accounts, you choose which one to link. You can also manage your NemKonto selection online via nemkonto.dk (requires MitID). We wrote an entire article dedicated to this topic of setting up your NemKonto here.
