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Investing in Denmark

FDI in figures | Why you should choose to invest in Denmark | Procedures relative to foreign investment | Finding assistance for further information

FDI in figures

In recent years, foreign direct investment stock in Denmark has increased sharply. Despite the effects of international financial crisis, the country is ranked 24th in the world, in terms of domestic FDI and 17th for FDI stock abroad.

 
Foreign Direct Investment 200520062007
FDI inward flow (millions USD) 12,8903,61511,224
FDI stock (millions USD) 115,953135,408146,632
Performance Index*, ranking on 141 economies 12311279
Potential Index**, ranking on 141 economies 1923-
Number of Greenfield investments*** 796567
FDI inwards (in % of GFCF****) 25.26.015.7
FDI stock (in % of GDP) 44.949.147.1

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

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Why you should choose to invest in Denmark

Strong points
This Scandinavian state's main advantages are:
- A skilled and multilingual workforce;
- Political stability;
- A high purchasing power;
- Well developed infrastructures;
- Great flexibility;
- One of the most advanced telecommunication infrastructures in Europe. The country is a world leader in the use of PCs, Internet and Broadband; and
- A relatively low company taxation rate (25%). Aditionally, expatriates can benefit from a special tax regime.
Weak points
The country's main weak points are:
- A relatively high income tax rate;
- A limited domestic market;
- An economic system that is too dependent on the international situation; and
- A currently damages economy.
Government measures to motivate or restrict FDI
The laws and regulations implemented by the government in recent years are orientated towards more openness and are non-discriminatory. The Danish government has concentrated its efforts on the improvement of general investment conditions and on reducing structural obstacles to market access. Significant progress has been made in privatization, de-monopolization and competitiveness.
In the eyes of the investors, Denmark has the advantage of being strategically geographically situated. It is a natural doorway to Scandinavian countries and the Baltic region.
Bilateral investment conventions signed by Denmark
As of December 2004, Denmark has concluded investment protection agreements with the following 41 countries: Albania, Argentina, Bolivia, Bulgaria, Czech Republic, Chile, China, Croatia, Egypt, Estonia, Ghana, Hong Kong, Hungary, India, Indonesia, Latvia, Lithuania, Malaysia, Mexico, Mongolia, Mozambique, Nicaragua, North Korea, Pakistan, Peru, the Philippines, Poland, Romania, Russia, Slovakia, Slovenia, South Korea, Sri Lanka, South Africa, Tanzania, Tunisia, Turkey, Ukraine, Venezuela, Vietnam, and Zimbabwe.

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Procedures relative to foreign investment

Freedom of establishment
High.
Acquisition of holdings
A majority holding interest in the capital of a local company is authorized.
Competent organization for the declaration

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Finding assistance for further information

Investment aid agency
Invest in Denmark
Federation of Danish Investment Associations
Other useful resources
Danish statistics
Ministry of economic and business affairs

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Last updates: November 2009