The Danish Dream: Three challenges expats face in Denmark

Moving to Denmark offers many opportunities, whether it is for a short study stay or to build a new life. However, settling in can be challenging as expats often struggle with certain bureaucratic and financial matters. Among the most common difficulties we see expats experience in Denmark are CPR numbers, pensions, and insurance. These may seem like practical concerns, but they can be major challenges in everyday life.

Below, we take a closer look at these three key issues and what newcomers need to know to navigate them successfully.

The CPR Number Maze

The CPR number is one of the most essential aspects of life in Denmark, but for many newcomers, obtaining it is far from straightforward. Without a CPR number, expats cannot open a bank account, sign up for a phone plan, or access healthcare services. The process of obtaining one can be particularly frustrating, especially for those who are unfamiliar with the bureaucratic requirements.

While non-EU citizens often receive a CPR number as part of their residence permit process, EU citizens must register at their local municipality or International Citizen Service center. This process can take time, and many expats are caught off guard by the documentation requirements.

A common obstacle is housing. Without a legal rental contract, it is almost impossible to get a CPR number. This leaves many newcomers stuck in a bureaucratic loop where they cannot sign a long-term rental agreement because they do not yet have a CPR number, but they cannot get a CPR number without a fixed address.

To avoid unnecessary delays, it is important to secure stable housing as soon as possible and ensure that all necessary documents are in order before starting the application process. It is also important to check whether the municipality in which you are registering has any specific requirements, as processes may vary slightly from one area to another.

Understanding the Danish Pension System

For foreigners who plan a long life in Denmark, one of the most frequent concerns is the pension system. And rightly so, as it is more complex than in many other countries. Instead of a single pension scheme, Denmark has a layered system that includes a state pension, employer-sponsored pension schemes, and private pension savings.

Although this structure ensures financial security in retirement, for those who do not plan to stay in Denmark long-term, it can be difficult to determine how their pension contributions will affect them in the future.

Many expats wonder whether they will qualify for the Danish state pension or if they can transfer their savings if they move elsewhere. The answer typically depends on several factors, including the number of years spent working in Denmark and whether their home country has a pension agreement with Denmark. Without a clear understanding of how contributions work and how pensions are distributed, expats risk overlooking an important aspect of their financial planning.

Those who plan to stay should familiarize themselves with their pension rights and consider seeking advice from their employer or a financial expert to ensure they are making the best decisions for their future.

Navigating the Insurance Landscape

Denmark has a strong welfare system and this provides a sense of security. Yet many expats are surprised to learn that certain types of insurance are essential for daily life.

While the public healthcare system covers basic medical needs, many people choose to supplement it with private health insurance, which often provides faster access to specialists and treatments not covered by the state. This type of insurance is commonly offered as part of employment contracts, but not all expats are aware of it when they start working in Denmark.

Another critical type of insurance is personal liability insurance, which is considered a necessity rather than an option. In Denmark, individuals are held financially responsible for damages they cause, whether to property or other people. Without insurance, even a minor accident can lead to significant costs. Similarly, home insurance is something that many landlords expect tenants to have, as it protects against theft, fire, and damage to personal belongings.

Many expats only realize the importance of these insurances when they find themselves in a difficult situation, which is why it is a good idea to research the available options early on. Checking whether an employer offers health insurance, signing up for a liability insurance policy, and ensuring that home insurance is in place before moving into an apartment are all important steps in adapting to life in Denmark.

Adjusting to life in Denmark comes with a learning curve. Understanding how to secure a CPR number, the pension system, and arranging the right insurance coverage are some of the key challenges expats face. Although these processes can feel overwhelming at first, taking the time to learn about them and getting the right support can make all the difference.