Retiring in Denmark: a complete guide
Discover what it takes to retire in Denmark and the various pros and cons of spending your golden years in this popular Scandinavian retirement destination.
Summary
Denmark is a popular place to retire due to its sustainable lifestyle and high standards of living and safety.
The average cost of living in Denmark is 9.8% higher than in the US, and the tax rate on retirement pensions is 15.3%.
Denmark is ranked as the tenth-best destination for Americans to retire abroad. Its cost of living is high, but so is the quality of life.
Unbiased can match you with an advisor that streamlines the process of retiring abroad.
What are the pros and cons of retiring in Denmark?
Retiring in Denmark has advantages and drawbacks, which should be considered before deciding whether you’d like to settle there in your non-working years.
Pros of retiring in Denmark:
Extremely safe and secure: Denmark has one of the lowest crime rates in the world. It is also very politically stable, making it a secure country in which to retire.
Low language barrier: Around 86% of Danes speak English, making communication easier than most European countries.
Sustainable lifestyle and infrastructure: Denmark is one of the greenest nations on the planet. Public spaces are clean, the air quality is high, and a vast percentage of the country’s energy comes from renewable sources.
Cons of retiring in Denmark:
High taxes: Like many Nordic countries, Denmark has high tax rates to compensate for public services and high quality of life.
Relative lack of diversity: Denmark has strict anti-immigration policies, making it difficult for foreigners to settle there. You aren’t likely to meet many international retirees.
High cost of living: Rent, utilities, groceries, and commuting are all costly endeavors in Denmark, making it an expensive place to retire without significant savings.
What are the best places to retire in Denmark?
Denmark’s natural beauty and quaint but lively cities make it a beautiful location for retirement.
Some of the best places to retire in Denmark include:
Copenhagen: Denmark's vibrant capital offers world-class commute infrastructure, stunning natural and city scenery, and a thriving nightlife and culture community.
Esbjerg: Known as the Energy Metropolis of Denmark, this city is extremely sustainable and expat-friendly. It also features unique public sculptures and some of the most beautiful beaches in Scandinavia.
Vejle: This vibrant, affordable region of Denmark offers breathtaking landscapes, rich arts and architecture sites, and plenty of outdoor exploration opportunities.
What age can you retire in Denmark?
The average age of retirement in Denmark is 65.5. However, a new law states that by 2070, the retirement age will increase by nine years, setting a new retirement benchmark of 75.
This is one of the highest retirement ages in the world, and it’s a definite consideration if you want to emigrate to Denmark.
What is the average cost of retirement in Denmark?
Retiring in Denmark is expensive, even in comparison to other European countries.
Utilities, transport, rent, and commodities are high, with the average cost of living for a single retired person averaging around $1,250 per month, excluding rent.
Rent is particularly high.
Furnished accommodation costs around $2,260 per month, with rates increasing significantly in upper-class areas.
The cost of living in Denmark is high because the infrastructure, healthcare, and public services are so efficient.
Do you pay taxes after retirement in Denmark?
Denmark taxes retirees based on the growth of their pension schemes. The tax rate is 15.3%, which is relatively high for the US and many EU countries.
As a foreigner retiring in Denmark, your pension scheme will be taxed at the same rate. To receive a Danish pension, you would need to have lived and worked in Denmark for a minimum of 40 years.
What programs are there for emigrating to Denmark?
The emigration programs for emigrating to Denmark are not extensive, but they are simple. As there are no Danish retirement visas available, you will need to obtain a work or partner visa.
What visas do I need to retire in Denmark?
As mentioned, Denmark does not have a retirement visa. You need a partner or work visa, after which you can file for retirement when you reach the age of 65.5 or older.
If you are married to a Danish citizen or have a business partnership with someone who legally lives there, you could apply for a sponsorship visa through them before retiring to Denmark.
What are my healthcare options in Denmark?
Denmark has universal healthcare coverage known as Sygesikring.
All legal residents have access to Sygesikring, making the healthcare options in Denmark favorable for US retirees.
Is it safe to retire in Denmark?
If you retire in Denmark, you will live in one of the safest countries in the world. It has a very low crime rate and is considered an extremely socially secure place to live, work, and retire.
What is the housing market in Denmark?
If you want to retire in Denmark, the prices of property in the different cities and towns vary significantly.
The average cost per square meter is between 38,724kr and 26,865kr, and the average house prices are as follows:
| Area of Denmark | Average house price |
|---|---|
| Area of Denmark | Average house price |
| Copenhagen | $750,000 |
| Esbjerg | $500,000 |
| Vejle | $680,000 |
What happens to my retirement benefits if I retire in Denmark?
You will still have access to your native country’s retirement benefits, but they will be taxed at 15.3%.
This means you can still enjoy your Social Security benefits. However, you will be taxed accordingly.
Is Denmark a good place to retire?
Many people consider Denmark to be one of the best places to retire in the world.
Its high quality of life, beautiful nature, focus on sustainable living, and universal healthcare program are all strong incentives for retiring in Denmark if you can afford it.
To facilitate a smooth retirement, let Unbiased match you with an expert financial advisor who can help you prepare for a financially successful future.
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