This article takes you through the steps to create a NemKonto as an expatriate and newcomer to Denmark. It starts by describing what a NemKonto is and why you need to have one. The benefits from having a NemKonto are also described.
At first sight the steps described below can look like a lot of technical stuff and time consuming tasks to do. But no need to get exhausted. The good news is that the steps are ones you need to carry out anyway as a newcomer in Denmark. And not only for setting up a NemKonto. So you need to choose a bank for your bank accounts and personal finances anyway. You also need to have a CPR-number (step 2 below) and a personal digital MitID (step 3) for many other important purposes. These other purposes and situations are also described below. So if you have already got a CPR-number and/or a MitID for other purposes, the practical parts of step 2 and/or step 3 below is not so important.
In fact a CPR-number is a mandatory requirement when living in Denmark. To use digital solutions and have a digital life, MitID is also necessary in practice. Moreover, the official websites to apply for a CPR-number and set up your MitID is available in English versions and guides you through the process in a user-friendly way. Links to these websites are also provided below. So it is actually rather easy to get done.
What is a NemKonto?
A NemKonto is a special bank account in Denmark, which every resident, including expats, must have. It is a solution provided by the state aimed at making it easy for ordinary residents to manage their finances. A blend of banking and government services. Other countries often have separate systems. But Denmark combines them with NemKonto. This approach is unique and simplifies financial matters for everyone as described below. Especially for newcomers to Denmark with a lot of new things to learn and take care of.
A key feature is that the account is linked to your CPR-number. All payments from the government are sent to this account and it is secured that the receiver is the right person.
Payments to receive from the government could be child benefits, rent subsidy or tax refunds. When you pay due taxes, it is also done from your NemKonto.
A NemKonto makes it easy to manage your personal finances – all payments in one bank account
All banks in Denmark are part of the NemKonto solution. So as a newcomer to Denmark you can choose the bank that fits your needs best knowing that all of them offer a NemKonto. And if you want to shift to another bank you can be sure to get a NemKonto in the new bank. It is free – without charges – to create a NemKonto in most banks.
NemKonto also helps with automatic bill payments so you won’t miss payments. And all your transactions with public authorities will be carried out here. Such as receiving welfare benefits or paying taxes. If you choose your ordinary payroll account as the NemKonto, all transactions including the monthly salary payment from the employer will be gathered at this account. Accessing your NemKonto online is straightforward. Almost every Danish bank has an online banking platform. You can check balances, view transactions, and transfer money. For expatriates, this means easy access to your finances, anytime and anywhere. Handling your bank business becomes easy and time efficient compared to the way it was done earlier on. And provides proper management of your personal finances in a secure way.
Some expats use international banking services like Revolut. Currently, Revolut cannot be used as your Nemkonto – it must be with a Danish bank. However, you can easily transfer money from your NemKonto to services like Revolut.
The bank you choose for your bank accounts and personal finances can help set up your NemKonto.
How to create a NemKonto – steps for expatriates
Step 1: Choose a bank in Denmark for your bank accounts and personal finances
To get a NemKonto you need to have a bank account in a Danish bank. So the first step is to choose the bank you want for your personal finances and bank accounts. It is important to pick a bank that meets your needs. Think about prices on loans and savings, other services offered, location etc.. For expatriates, banks with English-speaking staff can be a big help. Most banks offer a personal adviser and for some this will be an important parameter as well.
“Mybanker.dk” is a good tool to compare banks regarding their prices on loans and savings, the services they offer, how popular they are among customers etc. This will get you started and provide an overview of which banks are most relevant. In the link below you can type your personal information about your finances and your needs as a bank customer. The tool will then compare around 30 banks and select and present the 3 banks that fit your needs best. The website is in danish language but using “Google translate” to english language will work quite well. Mybanker tool to compare banks. Mybanker has also conducted a survey that ranks the best banks in Denmark as of 2024: Mybanker survey and ranking of best banks. Moreover you can read more about best banks in Denmark in this article: Best Bank in Denmark for Foreigners.
Before contacting the bank you have chosen, two important things must be accomplished: You must apply for a CPR-number (civil registration number) and also get a personal digital ID called MitID. The steps to take are described below.
Step 2: Apply for an “CPR-number”
What is a CPR-number?
CPR-number is a civil registration number or personal identification number. CPR is the abbreviation for Central Person Register. The number is 10 digits, with the first 6 digits being your birth date (DDMMYY) and the 4 last digits are random digits used as personal identification numbers. To create the NemKonto, a valid CPR-number is required.
All Danish citizens have a CPR-number. Expatriates and people from other countries who intend to live in Denmark for more than 3 months must have one as well. For workers coming from countries outside the EU, a residence and work permit is also needed. You can read more about this in this article: Work Permit Denmark – How To Get a Work Visa Successfully A place to live in Denmark with a valid address is also a requirement.
How to apply for a CPR-number
All the details about how to apply for a CPR-number and the documents to attach is described at the official website: https://lifeindenmark.borger.dk/theme/when-you-arrive. The application can be made online. But you must meet up in person to receive your CPR-number at a Citizen Service Center, if the application is accepted. Processing the application can take up to 14 days.
What is a CPR-number used for?
Besides for creating a NemKonto, CPR-number is also needed in many other important situations. Such as buying or renting an apartment or house, to get an insurance policy and to go to the doctor. So you need to get a CPR-number anyway. Also you are requested to inform your CPR-number when contacting public authorities. Such as applying for specific welfare benefits, using hospital services or communicating and filing information to SKAT (the danish tax authority).
Step 3: Set up and get MitID
What is MitID and what is it used for?
MitID is the official logon-solution to public as well as private websites. It is a personal digital ID aimed at making digital online transactions safe and secure. It is a required security step in many digital online situations and also when creating a NemKonto. MitID secures, that it is the right person behind the transaction. It is applied in situations such as transferring money in online banking, in the payment process for goods bought at a webshop or when logging into public self-service solutions like “skat.dk”, “borger.dk”, and “sundhed.dk”. MItID is a kind of monopoly in this area. So it is the only one to use and you can not choose other tools for logon. In reality therefore you need to have a MidID.
How to set up and get MitID
The official website for setting up your personal MitID and guiding you through the process is linked to here: Setting up MitID – official website.
As described at the website, there are 2 specific ways to get MitID:
- Online by using your passport as identification. With the MitID app (shall be installed on your smartphone) your passport is scanned and your identity confirmed. This can be done at home on a computer. It is not a big deal to set up your MitID online. The guided steps are made in a user-friendly way. As nearly all people living in Denmark – with varying digital skills and experiences – need to have MitID, the website and the guided steps are aimed at making it easy for the users.
- Get MitID at a Citizen Service Center. You must book an appointment and meet up physically. The documents for identification that you must bring to the meeting are also listed at the official website above.
Step 4: Create an NemKonto and your other bank accounts in the chosen bank
Contact your chosen bank and talk to a bank representative. Explain that you want to open a NemKonto. Each bank might have slightly different steps for creating the NemKonto. Then tell the bank which of your accounts should be your NemKonto. The bank will set up the account and link the account to your CPR-number. This link is what makes a regular account a NemKonto. Payments that are meant for you will find their way automatically.
The official website for administering the NemKonto solution is Official website for NemKonto. Here you can see the official information registered about the bank account you have chosen as NemKonto. The website provides a self-service solution where it is possible to create a NemKonto and also select another bank account as your NemKonto. This is an alternative way to create a NemKonto.
But as a newcomer to Denmark it is recommended to create the NemKonto with help from the chosen bank as described above. When you have to find a new bank and set up bank accounts anyway, it is easier and just as secure to create the NemKonto in that process with help from the new bank.
Most people choose their ordinary payroll account as NemKonto
You are free to choose which one of your accounts that shall be your NemKonto. Most people choose their ordinary payroll account as NemKonto. Then all your transactions with public authorities will be carried out here together with incoming salary payments from the employer. Such as receiving your monthly child benefits, tax refunds or student grants. So in practice it is most suitable to choose the payroll account as NemKonto. This makes it easy to manage your finances and not having to handle multiple accounts and transfer between them.
Your personal finances can be managed properly by the digital platforms in danish banks
Contact with banks in Denmark at present time is to a high degree online and on the phone. And not so much by physical meetings. But most banks still have branch offices around the country. It is possible to book meetings with your bank – physically or online. This can be relevant for larger financial matters such as applying for mortgage loans, investments or longer term financial planning. Most banks also offer a personal adviser for their customers. Nearly all day to day transactions, payments etc. can be carried out at the digital platforms offered by banks from your smartphone or computer. For most people this is a time efficient and easy way of handling bank business. It also provides you with the tools to manage personal finances properly.
Conclusion
NemKonto is a special bank account in Denmark, which every resident, including expats, must have. All payments from the states such as welfare benefits or tax refund are carried out at this account. Most people choose their basic salary bank account as NemKonto. With the monthly salary payment from your employer also gathered here, managing your finances gets easy with no need to handle multiple accounts.
The key feature about NemKonto is that it is linked to the CPR-number of the person. Thereby it is secured that all payments automatically are sent to the right person. So to set up a NemKonto a valid CPR-number is required. And also the digital personal ID tool called MitID. When these two steps are done, you can create a NemKonto in the bank you choose for your accounts and personal finances. With the bank helping to set up the NemKonto.
As described in this article, a CPR-number and a MitID is needed in many other situations and for other purposes than when creating a NemKonto. So as an expatriate and newcomer to Denmark, you need a CPR-number and a MitID anyway. And also to find and choose a new bank for your bank accounts. By this complete guide, the necessary steps are described and you are ready for easy handling of finances in Denmark.
