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MONEY

Ten ways to save money in Copenhagen

Relocation expert Melanie Haynes offers these ten tips for making your kroner go further in the Danish capital.

Ten ways to save money in Copenhagen
Enjoying a cold one in the park rather than a pricey bar is just one of the many ways to cut costs. Photo: Cees van Roeden/Copenhagen Media
Just last month, the Economist Intelligence Unit's 2016 Worldwide Cost of Living survey found Copenhagen to be the eighth most expensive place to live in and the only Scandinavian city to make the list. We all know that things are more expensive here. I have long since stopped comparing how much things cost here versus other countries but instead concentrate on how I can get my kroner to work the best for me here.
 
Here are my top ten ways to save money:
 
1. Shop around
 
Supermarkets like Netto are typically cheaper than more upscale options. Photo: Jens Rost/Flickr
Supermarkets like Netto are typically cheaper than more upscale options. Photo: Jens Rost/Flickr
 
The obvious one is to take a little time to shop around and find the best deals on your everyday food and household needs. Over the last five years there has been a big rise in what can be described as budget supermarkets that sell many of the same branded products as other supermarkets but at a cheaper price. Shops such as Netto, Aldi and Lidl are the best ones to check out for good prices and deals. For household and personal care products Normal is well worth a visit.  Another tip is to shop in the small neighbourhood greengrocers where you can pick up interesting fruit and vegetables that are sold by the weight and not prepackaged, meaning that you can buy only what you need and save money at the same time. The new concept shop, Wefood, in Amager sells food that can't be sold in the supermarkets and is at least 50 percent cheaper. Follow them on Facebook to see what they have that day.
 
 
2. Buy generic medication
 
Medication is pretty cheap here in general and you pay a varying cost for your prescription drugs rather than a flat fee like in the UK.  Always ask for the cheapest version (generic) of the medication you need, both across the counter and on prescription, if you want to save money. There is also a scheme for eligible medicines that can be subsidised on a sliding scale which starts after you have spent 935 kroner. There are grants for very expensive medicines.  To find out more about this eligibility you need to speak with your doctor.
 
3. Brew your own coffee
 
If you can live without the fancy latte design, there are cheaper ways to get your fix. Photo: AnnaKika/Flickr
If you can live without the fancy latte design, there are cheaper ways to get your fix. Photo: AnnaKika/Flickr
 
The coffee shop culture in Copenhagen is huge and the prices of a cup of joe can vary wildly across the city, as can the quality. But a lot of supermarkets sell a great selection of beans and have a grinder there for you to use. One bag of my favourite coffee from Irma (Monsoon Malabar in case you are interested) costs about the same as two lattes from a reasonably priced coffee shop. Invest in a cafetiere, a milk frother, and a decent insulated travel mug and you can enjoy a decent cup without the price tag.
 
 
4. Buy secondhand
 
 
Before you spend big bucks on an electrical item, furniture or bike (just to name a few examples) check out buying secondhand options such as Den Blå Avis or one of the many online selling, giving or swapping forums. A good time to do this is around May and June when a lot of expats are on the move and selling off their worldly goods before starting again in a new country. It is obvious to say (I hope) but make sure you exercise caution on deals that seem to go to be true and take proper safety precautions when meeting with strangers to buy things.
 
5. Save on kids’ stuff
 
Flea markets are popular amongst Danes and can be a great place to pick up quality kids' items. Photo: Callistofestivalen
Flea markets can be a great place to pick up quality kids' items. Photo: Callistofestivalen
 
Flea markets start at the beginning of spring and run through autumn and as they say one person's trash is another person's treasure. The best thing for me about flea markets is the sheer amount of baby and kids' stuff you can find, normally good quality. Get to your local flea market early for the best choice and bargains. Also don't be put off if it is a bit wet as many stallholders will still show up and there will be less competition for the goods. Mødrehjælpen shops across the city are also great for baby clothes and toys.
 
6. Beers al fresco or old school
 
A kiosk-bought beer can be enjoyed at Nyhavn for a fraction of a cafe's cost. Photo: Elisabetta Stringhi/Flickr
A kiosk-bought beer can be enjoyed at Nyhavn for a fraction of a cafe's cost. Photo: Elisabetta Stringhi/Flickr
 
Beers can be astronomically expensive here, especially in the city centre and hipper locations. If you are not bothered by secondhand smoke, or the fact the regulars may stare at you at first, check out your local pub or kro. Drinks are definitely cheaper in these places. The other option in the sunny months is to grab a six pack from the supermarket and enjoy a drink in one of the many parks or waterside areas in the city and watch the sun go down. Unlike countries like the US, it is perfectly permissible to drink in a public place, just don't get loud and lairy and take your cans home or pass them on to one of the many people wandering around collecting them to make a few kroner.
 
 
7. Year passes and free culture
 
An annual pass to Tivoli can pay off within just a few visits. Photo: Blondinrikard Fröberg/Flickr
An annual pass to Tivoli can pay off within just a few visits. Photo: Blondinrikard Fröberg/Flickr
 
There are a lot of opportunities in the city to be cultured and many museums and galleries are free, such as the Statens Museum for Kunst (SMK) and the National Museum. Other museums will offer times free entry during certain hours, so check out the websites of the places you are interested in. Another way of saving money on culture and recreation is to buy a year pass (årskort). The best examples of great value ones are Tivoli and Copenhagen Zoo. Most places you only need to visit twice and you have made your money back and then every time after that it's free! With these passes we find we take more advantage of places and enjoy them without feeling like you have to see everything at once to justify the entry price.
 
8. Buy Christmas gifts and winter clothes in August
 
Many shops, especially Bilka, have big discounts in the summer on children's toys and winter clothes. Every year for the last three Bilka has run a 25 percent sale on all Lego in August. If you child is a Lego fanatic like mine then this is the time to put on your Santa's hat and stock up. This is also the time to get the best prices on winter clothes and it pays to act! Winter clothes come in early in Danish stores and once they are gone they don't seem to be restocked.
 
9. Make use of libraries
 
Libraries are a source of free entertainment and, in the case of the Black Diamond, excellent views. Photo: Scanpix
Libraries are a source of free entertainment and, in the case of the Black Diamond, excellent views. Photo: Scanpix
 
The library network in Copenhagen is huge and all you need is a CPR number to make the most of the borrowing services. Wifi and other facilities are available to anyone. You can use the central website to search for books (and there is a great selection of English language titles) and then request to have to the books delivered to your local library for collection and return. Libraries also have kids' play areas and many organise free events and talks. Usually these are in Danish but the Copenhagen Cultural Network organises English language events for adults and children in a few locations.
 
10. Savvy public transport savings
 
Train travel is definitely an area in which you want to buy in bulk. Photo: Scanpix
Train travel is definitely an area in which you want to buy in bulk. Photo: Scanpix
 
Copenhagen may have the world's most expensive single-trip tickets, but there are plenty of more costly alternatives to paying as you go. The best way to save money on transport, if you use it regularly, is to get a monthly pass with unlimited travel within your selected zones. A Rejsekort will also save you money on individual journeys if you don't travel everyday. Another tip if you are travelling out of the city to visit a museum is to see if they are part of a DSB discount scheme which saves you money on travel and entry – Louisiana is the best example of this. Finally if you are planning to use intercity trains in Denmark there are limited cheap tickets under the DSB Orange scheme which can save you an enormous amount of money if you book well in advance. Also if you are travelling in a group of three or more passengers you can take advantage of a mini group ticket which again saves you money.
 
Melanie HaynesMelanie Haynes is originally from the UK and has lived in Copenhagen for eight years. She writes about life in Copenhagen on her blog Dejlige Days and after experiencing relocation to Copenhagen and Berlin, she runs a settling-in service aimed at helping expats called Dejlige Days Welcome. Her ebook, Dejlige Days: A Guide to relocation, will be published soon.

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WORKING IN DENMARK

What salary can you expect to earn in Denmark?

Denmark is well known for being an expensive country with high taxes. But what can your salary expectations be if you move here and what are you left with after tax and other deductions? We break it down for you.

What salary can you expect to earn in Denmark?

What is my salary after tax?

The Danish average income is 45,500 kroner per month (see below for a breakdown of variations according to age and sector). This is your grundløn, which is the basic wage before supplements are added and before tax, which is paid monthly, månedslønnet. The average full-time job is typically 160.33 hours per month, your timetal. What you take home after deductions is called your netto pay.

Broadly, your salary will include the following deductions: Labour market tax (AM-bidrag 8%), State tax (bundskat 12%), Municipality tax (kommuneskat 25%), State pension contribution (ATP-bidrag 94.65 kroner), Holiday pay (Feriepenge potentially 12.5 percent claimed back later in the year).

If you have an income of 45,500 kroner per month, that means around 45.1 percent will be taxed, and 94.65 will go towards the state pension, giving you a total of 24,884.85 kroner per month (3,340 euros per month) after deductions. Holiday pay may be deducted and later reimbursed, depending on your employer.

It should also be noted that various tax deductions can result in the overall tax contribution being reduced.

How does salary vary by age and profession?

The average employee in Denmark earns 45,545.60 kroner (6,111 euros) per month before taxes, according to Statistics Denmark.

The older you are and more experience you have, the more you earn. So when broken down into age categories, the figures are slightly different.

Under 20 year olds: 19,264.35 kroner per month. 

20-24 year olds: 26,996.14 kroner per month

25-29 year olds: 36,120.13 kroner per month

30-34 year olds: 41,606.29 kroner per month

35-39 year olds: 45,287.62 kroner per mont

40-44 year olds: 48,227.51 kroner per month

45-49 year olds: 49,852.91 kroner per month

50-54 year olds: 49,817.97 kroner per month

55-59 year olds: 48,471.48 kroner per month

60 and over: 47,138.48 kroner per month

Job sectors also have an impact on salary. On the Statistics Denmark website, you can select your field of work to find the average salary for your role.

Here is a sample of various professions in Denmark and their average monthly salaries in 2021:

Software developers: 59,904.51 kroner

Science and engineering professionals: 59,092.83 kroner 

Architects, planners, surveyors and designers: 49,013.29 kroner

Accountants: 60,526.45 kroner

University and higher education teachers: 50,452.46 kroner

Secondary education teachers: 51,013.67 kroner

Primary school teachers: 45,427.32 kroner

Early childhood educators: 38,708.66 kroner

Medical doctors: 73,551.49 kroner

Physiotherapists: 39,998.38 kroner

Nursing and midwifery professionals: 44,130.79 kroner

Advertisers and PR managers 82,871.18 kroner. 

Public relations professionals: 51,349.93 kroner

Advertising and marketing professionals: 51,768.53 kroner

Shop sales: 27,894.29 kroner

Restaurant managers: 44,294.49 kroner 

Waiters and bartenders: 27,566.83 kroner

What comes out of your salary?

Income tax in Denmark is divided into a number of components. The most important are the two state taxes, basic and top tax (bundskat and topskat); municipal tax and labour market tax (AM-bidrag).

READ MORE: How does income tax in Denmark compare to the rest of the Nordics?

AM-bidrag

AM-bidrag or arbejdsmarkedsbidrag, literally ‘labour market contribution’ is a tax of 8 percent of your wages. It is paid directly to the Danish Tax Agency (Skat) by your employer (for those who are not self-employed or freelance).

Bundskat

State or basic tax (bundskat) comprises 12.10 percent of your income after tax deductible income has been subtracted.

Kommuneskat

Municipal tax is the personal income tax which covers municipal services. The amount you pay depends on the municipality you live in but on average it is 24 percent.

Topskat

The top-end Danish income tax bracket, topskat, is based on the political principle that those who earn the most, must contribute more to the Danish state. Political debate on tax policy often revolves around the extent to which topskat should be applied.

Topskat is 15 percent (2022). This means that you have to pay 15 percent extra in tax if you earn more than 600,543 kroner. After AM-bidrag deduction, this is 552,500 kroner so you pay this extra 15 percent on the amount of money you earn over 552,500 kroner.

READ ALSO: How will new Danish government change income tax?

Kirkeskat

Denmark has a small church tax (kirkeskat). The exact rate depends on the municipality but averages at 0.661 percent. Only members of the Church of Denmark (Folkekirken) pay this tax, so foreigners who have moved to the country in adulthood (as well as people of other religions) generally won’t see it on their pay slips. Danes can opt out of paying the tax if you they do not wish to be a member of the church.

Skrå skatteloft

There is a tax ceiling (skrå skatteloft), which in 2022 was 52.07 percent. This means that you can never be taxed more than this amount. If your total tax rate ends up exceeding the tax ceiling, your topskat is reduced so that the total tax rate ends up at the maximum 52.07 percent.

Fradrag

Literally ‘(tax) deduction’, fradrag is the part of your income which can be exempted from taxation. This can be up to 46,000 kroner (37,300 kroner for people under 18).

Things that can be exempt from tax include membership to trade unions and A-kasse, employment expenses, charitable contributions, child support maintenance and the cost of commuting. You can check what you are entitled to here (in Danish).

READ ALSO: Denmark raises tax deduction for commuters amid high fuel prices

ATP-bidrag

ATP stands for Arbejdsmarkedets Tillægspension. This is a pension into which you are legally obliged to pay and which supplements the state pension (folkepension). Your employer pays two-thirds of the ATP contribution, one third comes from your wage. This is the amount you will see on your payslip.

If you are paid monthly it will be 94.65 kroner (2023). Your employer contributes 189.35 kroner, adding up to 284 kroner per month.

AM-Pension

Arbejdsmarkedspension and other pension contributions will be recorded on your payslip. You may see the terms AM-pension firma or AM-pension egen, depending on the type of pension you may pay into.

READ ALSO:

Feriepenge

‘Holiday money’ or feriepenge is a monthly contribution paid out of your salary into a special fund, depending on how much you earn. You can claim back the money once per year, provided you actually take holiday from work. It is earned at the rate of 2.08 vacation days per month.

There are two sub-types of feriepenge. These are ferie med løn, whereby you are paid while on holiday – in this case you are entitled to a supplement of about 1 percent to your wages.

If you are not paid while on holiday, you will receive feriegodtgørelse as part of your wages and will see this on your payslip. This means that your employer is obliged by law to pay 12.5 percent of your wages in holiday money into the national pool for you to claim back each year, equivalent to five weeks’ holiday.

READ ALSO: EXPLAINED: How to understand your Danish payslip

 
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