DENMARK: Useful Info

Denmark has one of the highest standards of living in the world. Its prosperity can be partially attributed to a strong industrialised market economy, marked by a liberal trade policy. Its exports and imports combined contribute to a third of its GDP. It is considered to be the UK’s 16th most important export market.

Denmark has a long history of trade, with its merchants crossing the seas to establish strong maritime contacts with Europe and the US. Its interaction with its neighbors not only filled the country’s coffers, but led to a rich culture and vibrant intellectual environment. Some of Denmark’s best “exports” have been its thinkers: philosopher Soren Kierkegaard, storyteller Hans Christian Anderson, astronomer Tycho Brahe and Nobel laureate Niels Bohr.

Denmark enjoys great political stability. One of the most heated debates is the country’s role in the European Union. It has yet to adopt the Euro, due to concerns of the long-term stability of European economies and a fierce sense of nationalism.

Quick Facts

Population: 5.4 million (Source: UN, 2005)
Capital: Copenhagen
Area: 43,098 sq km (16,640 sq miles)
Major language: Danish
Monetary unit: 1 krone = 100 ore
Main exports: Machinery and equipment, foodstuffs, chemicals
GNI per capita: US $40,650 (Source: World Bank, 2005)

Economic Background

Denmark is an excellent place for UK firms to do business. Aside from the two countries’ strong cultural and historical ties, its excellent purchasing power, and a stable political and economic environment, it offers incentives and benefits that are attractive even for small and medium sized businesses.

It has one of the world’s top three flexible labour markets, with no restrictions to overtime work (allowing round-the-clock productivity) and a low frequency of strikes. The high level of educational attainment and English fluency (it is considered a natural second language) also make it one of the most competent work forces in the world, and its technicians and engineers are particularly respected. For companies that wish to do business with several European countries, most Danes can also speak German, French and Spanish.

The country also has one of the most liberal rules on the termination of contracts, allowing companies to adjust manpower according to need and maintaining cost-efficient operations.

Denmark also leads Europe in telecommunication infrastructure, with a fully digitized network, and both companies and private citizens have embraced Internet, computers and mobile phones as a matter of course.

Transportation is efficient and swift, and due to its excellent network of roads and the Øresund Bridge it is Europe’s gateway to the Baltic region and the Scandinavian countries. The Copenhagan Airport is also considered to be Europe’s most efficient airport, and is the main hub in Northern Europe.

Denmark also offers superb business incentives, including a corporate tax rate of 28% and tax treaties. Expatriates working in Denmark are also given special privileges.

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