DENMARK

Export Atlas in PDF

With a population of 6 million and a forecasted GDP of almost $450bn in 2025, Denmark is a typical example of the Nordic economic model, combining high living standards and low income inequality. As a small, high‑income open economy, it is underpinned by very strong external credentials: its NIIP was roughly 78.5% of GDP in March2025, among the highest in Europe. The current account surplus remained robust at 9.8% of GDP in 2023 (despite easing from 11.7% in 2022), reflecting strength in pharmaceutical exports and shipping services.

Public debt is relatively low: general government debt was about 33% of GDP per Eurostat’s 2023 reporting, well below EU thresholds. Fiscal credibility remains sound, with premium credit ratings supported by a strong institutional framework. A notable source of recent economic momentum is Novo Nordisk’s rapid growth in 2023, which helped the economy narrowly avoid recession.

Nevertheless, the economy faces medium‑term challenges: diversification beyond pharma, sustaining competitiveness amid global headwinds, and ensuring climate‑investment supports external rebalancing. Growth is expected to remain moderate but steady through 2025.

Summary

BNP Paribas has been present in Denmark since 2006 with a business centre based in Copenhagen. While Denmark is well-served by local banks, many multinational corporations were seeking an international banking partner that can provide pan-European cash management services and international trade finance solutions. BNP Paribas is one of only a few non-Nordic banks with direct access to the local clearing house in Denmark. It is also one of few banks that can include local accounts in Denmark within a pan-European cash pool. BNP Paribas has been recognised by corporate clients as the top international bank in the country and the Nordics (ahead of several local & regional banks). 

Currency

Denmark uses the Danish krone (DKK).

Bank accounts

  •  A company is resident in Denmark (i) if it is incorporated in Denmark and registered in the Companies Register as having a Danish place of business or (ii) for foreign companies if they are having their actual place of management in Denmark.

Factoring

  • Negative pledge in regards of floating charge needs to be signed and registered at company house in Denmark.
  • Pledge on bank account in favour of Factor is only possible with fixed amount. That is why disclosed transaction is much preferred.
  • Ban on assignment is valid under Danish law.
  • Hardening period: If not notified to debtors, 3 months hardening period applicable, starting the date of debtor receive notification.

BNP Paribas Cash Management Capabilities

Cash collections
Cheque collections
Direct debit collections
Domestic incoming transfers
Virtual IBAN
Virtual accounts
International incoming transfers
Card acquiring

Payments & collections

Electronic credit transfers are predominantly used by companies to pay suppliers and employees. Debit cards are commonly used by consumers to make retail payments. Contactless payments predominate. Over 86% of all in-store payments in October 2020, were contactless.

The BOKIS banking consortium, offers mobile payments using Dankort, the national payment card. The Dankort app is Dankort’s mobile wallet. Other mobile payment schemes include MobilePay, Denmark’s most popular mobile wallet, Apple Pay, Google Pay and Samsung Pay.

The Nordic Payments Council’s Credit Transfer Scheme entered into effect in December 2020 and its NPC Instant Credit Transfer Scheme in February 2021. The schemes will enable payments to be made in Swedish krona (SEK) and Danish kroner (DKK) between bank accounts across the Nordic countries.

Electronic banking services are available from almost all banks. There is no national electronic banking standard in Denmark, so companies use banks' proprietary services. Transaction and balance reporting and transaction initiation services are available on a domestic and cross-border basis.

Danish banks use the Nordic Payments Council’s Credit Transfer Scheme  MIG (Message Implementation Guideline), an XML-based format for payment initiation, cancellation or status reporting. Banks also support the legacy payment formats sometimes with the support of MasterCard Payment Services local legacy formats. 

E-Faktura, an online electronic invoice and bill presentment scheme, is increasingly used by Danish companies. Digital banking services are provided by all of the country’s banks. More than two million people in Denmark have access to open banking services.

Short term investments

Interest payable on credit balances

  • Interest-bearing current accounts are permitted for residents and non-residents.

Demand deposits

  • Demand deposits are available for residents and non-residents.

Time deposits

  • Time deposits are available in DKK or major foreign currencies for terms ranging from one day to one year.
  • The minimum investment is DKK 250,000.

Certificates of deposit

  • Domestic banks issue certificates of deposit with a range of tenors.

Treasury (government) bills

  • The Danish government issues Treasury bills (T-bills) with terms of six or nine months (although up to one year is possible).

Commercial paper

  • Commercial paper is issued by companies with a range of maturities. The minimum investment is DKK 1 million.

Money market funds

  • Money market funds are available.

Repurchase agreements

  • Repurchase agreements (repos) with maturities ranging from overnight to one year are commonly available in Denmark. The minimum investment is DKK 1 million.
  • Reverse repos are also available with a minimum investment of DKK 500,000.

Bankers’ acceptances

  • Bankers' acceptances are not used in Denmark.

BNP Paribas Trade Finance Capabilities

Documentary credits
Documentary collections

International trade

  • As a member of the EU, Denmark follows the EU customs code and applies all associated regulations and commercial policies.
  • Trade with countries in the European Economic Area (EEA) and Switzerland is exempt from tariffs and other controls.