Denmark: Danish Bank Account Required for Certain Permit Holders

January 5, 2021 Lucy Halse

Key Points

  • Certain permit holders must have their salaries deposited in a Danish bank account
  • The rules apply to Positive List permits and work permit schemes
  • Employees must register an address within 90 days of arrival to meet the requirements
  • The changes apply to all affected work permit applicants applying on or after January 1, 2021
  • New requirements also apply to dependents
  • Permit applications filed on or after January 1, 2021 must also comply with new minimum wages

Overview

Certain permit holders must have their salaries paid into a Danish bank account, including Positive List permits and all work permit schemes. New requirements also apply for dependents.

What are the Changes?

Individuals who received a Positive List permit on January 1, 2021 or later must now have their salary deposited in a Danish bank account. They must also register a Danish address within three months of arrival to meet the requirements. 

The new requirement means that a Positive List permit holder’s entire salary must now be deposited into his or her Danish bank account if the employee plans to stay in Denmark beyond 180 days. Previously, only an employee’s earnings above the minimum salary could be paid in Denmark. Permit holders must also register a Danish address within 90 days of the permit’s start date or after arriving in Denmark, whichever is later. To open a Danish bank account, employees must have either a permanent accommodation in Denmark or reserve a temporary accommodation for one-two months.

Dependents’ work rights are also affected by the new rules. Dependents who are starting work in Denmark for the same employer as the principal permit holder, or who are working for a related employer, must obtain a principal employment permit before they can start work. Dependents must submit a new work permit before they begin work if they find employment after receiving their dependent permit.

What Should Employers and Applicants Know?

Employers should make sure that all Positive List permit applications conform to the new Danish bank account requirements if the applications are filed on or after January 1, 2021.

Additionally, employers should note that Denmark’s new minimum salary level is DKK 445,000 per year. The new policies only apply to initial work permit applications. Employers of initial work permit applicants who are applying after January 1, 2021 must increase the employee’s salary to comply with the new minimum salary requirements. Allowances and benefits are not generally included in minimum salary calculations. The minimum salary generally only includes paid holiday allowances, payments to a labor market pension scheme, and the employee’s basic salary.


Content in this publication is not intended as legal advice, nor should it be relied on as such. For additional information on the issues discussed, consult an Envoy-affiliated attorney or another qualified professional.

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