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Family Integration Guide

Published by mazzone, 2020-04-23 03:51:56

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INTEGRATION IN THE DANISH CULTURE AND BUREAUCRACY THE BRIGHT-MINDED GUIDE

Indhold ........................................................................................................................................................................... 0 WELCOME! ........................................................................................................................................................ 3 FAMILY AND LEISURE........................................................................................................................................ 3 Pregnancy and childbirth.............................................................................................................................. 3 Doctor and Midwife visits......................................................................................................................... 3 Parental Support Classes .......................................................................................................................... 4 Bith certificate, Naming and Christening ................................................................................................. 5 After birth: parental leave and how does it work ................................................................................... 5 Childcare........................................................................................................................................................ 7 “Børneydelse”: child benefits in Denmark............................................................................................... 7 Childcare facilities ..................................................................................................................................... 7 Kindergartens: types and how to apply ................................................................................................... 8 Education....................................................................................................................................................... 9 Efterskoler and Højskoler ....................................................................................................................... 10 International basic schools ..................................................................................................................... 11 SU and financial aids............................................................................................................................... 11 Learning Danish....................................................................................................................................... 12 Housing........................................................................................................................................................ 13 Commercial Housing ............................................................................................................................... 13 Non-profit housing.................................................................................................................................. 13 What to remember ................................................................................................................................. 13 Rent levels............................................................................................................................................... 14 Lejernes Landsorganisation (LLO)........................................................................................................... 14 Culture and Leisure..................................................................................................................................... 14 Sport activities in the Danish culture ..................................................................................................... 15 General benefits and allowances - overview......................................................................................... 15 FINANCE AND TAXES....................................................................................................................................... 16 Registration and healthcare card ............................................................................................................... 17 CPR number: ........................................................................................................................................... 17 Health Insurance Card: ........................................................................................................................... 17 How to request a NemID ........................................................................................................................ 18 E-Boks ...................................................................................................................................................... 19 Banking........................................................................................................................................................ 19 1

Choosing a bank ...................................................................................................................................... 19 Opening a bank account ......................................................................................................................... 19 Obtaining a loan...................................................................................................................................... 20 Insurances ................................................................................................................................................... 21 Work related insurance .......................................................................................................................... 21 Private insurances................................................................................................................................... 21 How to choose an insurance company .................................................................................................. 23 Salaries ........................................................................................................................................................ 24 The payslip .............................................................................................................................................. 24 Holiday allowance................................................................................................................................... 24 Sick leave................................................................................................................................................. 25 Tax System .................................................................................................................................................. 26 Taxation in Denmark: ............................................................................................................................. 26 A-skat and B-skat .................................................................................................................................... 27 Direct and Indirect taxes......................................................................................................................... 27 Tax deductions and allowances (Skattefradrag) ................................................................................... 30 Setting up your own business................................................................................................................. 31 Pension System ........................................................................................................................................... 32 State pension and individual pension:................................................................................................... 32 Pension Funds ......................................................................................................................................... 33 2

WELCOME! Bright-Minded is glad to welcome you in Denmark! Congratulations for this big step in your life. We will do our best to help you finding your way around as quickly as possible and to get successfully integrated professionally and socially in the Danish life. This guide is for you, and it will hopefully be a helpful resource to the basics of the life in Denmark, for you and your family. Each experience is unique, and you might encounter situations that have not been described in this guide. You are always welcome to contact your Regional Partner for any additional information you might need, they are always ready to help. FAMILY AND LEISURE In this first chapter you will find all the information that might be relevant for you and your family in order to understand how the Danish system is organized and to help you to get your kids safely through their first steps and their education. You will also find a few things about Danish culture, and some indication of unwritten rules in order to quickly create your professional and social network. Pregnancy and childbirth Doctor and Midwife visits In Denmark you can buy a pregnancy test in any supermarket or pharmacy (Apotek) for a reasonably low price. If the test is positive, you should contact your doctor1 and you will be invited to come in for an appointment. 1 see section ”Registration and health care card” to know how to get your doctor. 3

Congratulation for your pregnancy! You are surely excited to meet your new family member, and the Danish healthcare will help you through the process. Most doctors and midwifes talk English very well, so you don’t have to worry about the language barrier. All pregnant women can see a doctor and a midwife free of charge during pregnancy. They will examine you and ensure that both you and your baby are well. There are 5 examinations made by a doctor, the first between week 6 and 10 of pregnancy, a second in week 25, a third in week 32 and the last two are 5 and 8 weeks after the birth. The midwife will be visiting you in week 29 and from week 35 until the birth. During pregnancy you will also have your blood tested and ultrasound scans. During these meetings, your health and well-being will be checked. The doctors are very kind, and you can openly speak about any doubt, idea or worry you might have. In a good time before your due date, your doctor will ask you to decide at which hospital you want to deliver your child, or if you prefer to give birth at home. In some regions (in Region Syddanmark for example) you will have to select a midwifery clinic, usually the closest to your home. Please note that the number and the schedule of the visits might vary from region to region, so make sure of your appointments with your doctor, who will inform you about the pregnancy program. Parental Support Classes Usually hospitals offer antenatal classes and birth preparation classes: you can participate free of charge (usually also with your partner or somebody else to accompany you). There is a wide selection of classes offered in Denmark: pregnancy Yoga, private consultations, and birth preparation classes in English being among them. The classes have the goal to give you a solid knowledge basis into becoming a parent, from breastfeeding, mood swings, post-natal reactions, sex life and much more. You can ask your midwife about those, and you will get all the details needed. There are also private antenatal classes in English, which you will need to pay for. You can also ask your health visitor (sundhedsplejeske) to add you in a mother group. It is a group of women who will give birth at around the same time, who get in contact with each other to socialize and exchange experiences. Sometimes there is a wait time until they have a sufficient number for the group. 4

The health visitor will set up the first meeting, and then the moms of the group have the freedom to set up as many meetings as they like. The International Community in Denmark is very active. There are many active groups for English-speaking Parents and Moms. You can check the LINK-page (Ladies in Denmark), which has an active program of activities for English speaking moms and parents. Churches also often hold playgroups and music classes for babies. During labour you will receive support and guidance from your midwife by phone when the contractions start, and you will be accepted at the hospital once the contractions reach a regular rhythm. Bith certificate, Naming and Christening Once your baby is born, you will have to fill in a form, which is to be sent to the Register of the State Church, which then issues a birth certificate. It is always the Danish National Church who registers all the new births on behalf of the State, whichever your religion is. Online you can find a form to register the baby’s name before the child is six months old. Once the child receives a Birth Certificate, he or she can be named at the Christening Ceremony as a recognized religious community. After birth: parental leave and how does it work If you are working in Denmark, you have the right to the same economic benefits concerning parental leave as people who live in Denmark. The rules for Parental Leave in Denmark are flexible. Some of it is fixed, but the rest can be shared between the new parents as desired. The total weeks of maternity/paternity leave with maternity/paternity benefits is of 52 weeks. - 4 weeks prior to the birth for the mother: it does not affect the length of the leave after the birth if the birth takes place before or after the due date. - 14 weeks after the birth for the mother: the leave starts on the calendar day after the birth. - 2 weeks after the birth for the father/co-mother: The leave is taken in connection with the birth but the father may arrange with his employee for the weeks to be placed at another time before the child is 14 weeks old. In specific cases, the father may assume the mother's entitlement to leave during the first 14 weeks. This applies, e.g., in the event that the mother passes away or cannot take care of the child due to illness. The co-mother has the same rights as the father according to the Act on Entitlement to Leave and Benefits in the Event of Childbirth. 5

- 32 weeks after the birth, which may be divided between the parents: it may be taken together, by taking turns or in continuation of each other. If you are paid during any of the maternity/paternity leave, you must be aware that the weeks with pay are deducted from the 52 weeks of leave with maternity/paternity benefits. This is because the government benefits are paid to your employer as reimbursement for the pay you receive. When to give notice to your employer? - 3 months prior to the due date: The mother must inform her employer of when she expects to give birth and state whether she wishes to exercise her right to pregnancy leave prior to the birth. However, it may be a good idea to disclose your pregnancy or fertility treatment earlier, in order to safeguard against dismissal. - Within 4 weeks prior to the start of the leave: the father/co-mother must inform his employer of when he expects to take his 2-4 weeks of paternity leave - Within 8 weeks after the birth: Both the mother and father must inform their employers of whether they wish to take parental leave with full pay, as well as when they wish to take their leave. The parents must inform their employers of how much leave they wish to take, how they will take it and whether they wish to extend or postpone a part of their leave. The parents must also inform their employers if they wish to make use of the uniform agreement right to a part-time agreement up to and including week 60 after the birth. The right to Parental Allowance – “Barselsdagpenge” Maternity benefit or parental allowance is in Danish called \"barselsdagpenge\". It is paid to give you an income during pregnancy, or in conjunction with birth or adoption. The authority \"Udbetaling Danmark\" decides whether you are eligible for barselsdagpenge. The requirement are the following as of July 1st, 2018: - You must be employed by the day before or on the first day of your parental leave. - You should have worked for at least 160 hours in the last four full months before your parental leave. - You must have worked for at least 40 hours a month for at least three of the four months. Udbetaling Danmark automatically receives this information from your employer. The precise conditions that apply to you depend on the agreement at your workplace and in your employment contract. In some cases, the employer pays your full salary during the whole or parts of your 6

parental leave. If this is not the case, you have the right to an allowance and should contact Udbetaling Danmark. Check with your employer to find out what applies in your workplace. Childcare “Børneydelse”: child benefits in Denmark The Danish authority \"Udbetaling Danmark\" manages and pays child benefit. You can go to your local \"borgerservice-kontor\" in the municipality where you are working to get help with filling in the application and to ask questions. Udbetaling Danmark decides on and pais the benefits. Child benefit is paid once a quarter, usually to the child's mother unless the child's father is the guardian. How much is paid depends on the age of the child. For 2019, the amounts are: Child benefit (børneydelse): - 0 - 2 years old: DKK 4 557 per child per quarter - 3 - 6 years old: DKK 3 609 per child per quarter - 7 - 14 years old: DKK 2 838 per child per quarter Young life benefit (ungeydelse): - 15 - 17 years old: DKK 946 per month per teenager The right to receive ungeydelse can sometimes stop if the teenager in question stops attending secondary education. For single parents who meet special requirements it is possible to receive an extra benefit, called \"børnetilskud\". Contact Udbetaling Danmark for more information. Childcare facilities For children below the age of three, parents can choose nursery (Danish: vuggestue) or family daycare (Danish: dagpleje). A nursery is an institution designed to look after larger groups of small children while family day care involves only four or five children, looked after by a childminder in his/her own home. Both systems are public (also the childcare provider for the daycare is, in some cases, hired by the municipality). It is also possible to put your child in private daycare. In this case, your child is cared for in a private home by a child care provider who is approved by the municipality. If the child-care provider is self-employed, then you are required to pay the daycare provider in full by the end of every month. 7

Childcare for three to five year-olds takes place in kindergartens. Most Danish kindergartens are public, but you will also find private ones. Almost all Danish families send their children to kindergarten. All Danish kindergartens have professionally trained staff, but children don’t receive preschool teaching. Instead, Danish kindergartens stimulate children’s social, linguistic and democratic skills, primarily through play. Childcare facilities receive financial support from the state. The amount payable out of parent’s pocket is at most 30% of the actual cost. The opening hours of the care facilities are, in most cases, between 6:30 am and 5 pm (Fridays until 4 pm), but they can vary. You can register your child for one of these services in the municipality administration office (in Danish: Pladsanvisningen). The cost of childcare services in Denmark depends on your child’s age and the type of childcare you choose. You should get information about the actual prices at your municipality, but to get an overview you can read more about childcare services in Copenaghen here: https://international.kk.dk/artikel/cost-childcare- services Kindergartens: types and how to apply The Danish “børnehave” allows children from 3 to 5 years-old, although some municipalities accept younger children, for example Aarhus receives children from 2 years and 11 months of age. The staff in the kindergarten consist of trained kindergarten teachers and assistants. Your experience with your child's habits and routines is an important element in your cooperation with the kindergarten. Tell the staff about your child so that you can ensure that your child thrives and develops at home as well as in the kindergarten. Ask the kindergarten teachers how to help your child get the best start in the new kindergarten. The daily routine may differ depending on which kindergarten your child attends. Also, in addition to ordinary kindergartens you can find the following types in kindergartens in Denmark: - Nature kindergartens - Sport kindergartens - Special-needs kindergartens for children with disabilities - Kindergartens offering part-time care - International kindergartens You can find more about which kind of kindergartens are there in your municipality, on your municipality’s hompage. 8

A number of schools also offer after school programmes (Fritidsordning/SFO) for children between the ages of six and 10. Contact your child’s school to find out more about the programmes they offer. Education Education in Denmark is compulsory, from the age of 5 - 6 to 15 – 16 years old. This period of compulsory education is called “Folkeskole” (literaly translated: “people’s school”), encompassing pre-school, primary and lower secondary education. The educational approach in Denmark avoiods class rankings and formal tests: children work mostly in groups to boost team-working and cooperation. The emphasis is on problem-solving and teachers are called by their first name. All children have access to tuituion-free public folkeskole until they are 16 years old. If you choose a private school instead, there will be tuituions. Others choose private schools for religious reasons: Denmark is home to Jewish, Christian, and Muslim schools. English-language international schools and French and German-language schools are also available on a paid-for basis. All schools are required to follow the national government's basic requirements for primary education. Students get grades based on a 7-point grading scale: Danish Explanation of the mark Equivalent mark ECTS mark 12 For an excellent performance A 10 For a very good performance B 7 For a good performance C 4 For a fair performance D 02 For an adequate performance E 00 For an inadequate performance Fx -3 For an unacceptable performance F fig. 1. “Danish grades” source: https://eng.uvm.dk/primary-and-lower-secondary-education/the-folkeskole/7-point-grading-scale An overview of the Danish Education System is the following: 9

fig. 2. “Danish school system” source: https://internationalcommunity.dk/en-US/Your-guide-to-DK/Living-Working/Children/The- Danish-Education-System Efterskoler and Højskoler Efterskole is a special offer for students between the age of 14 and 18. Presently, some 28.500 students attend one of the app. 250 schools throughout Denmark. Depending on the school, grades 7th-10th are taught. Students live at the school and engage in many extracurricular as well as social activities. For many, the year(s) at efterskole is much more than just education – it is an experience of a lifetime where they make friends for life and find themselves turning into adults. You must pay school fees to attend efterskole. Højskole (“people’s hiogh schools”) are for everybody who is at least 17 ½ years old or older (there is no upper limit). There is no fixed curriculum, no exams and no grades. Students can freely choose from a wide variety of different subjects and classes. In this way, they can broadly challenge themselves and try new things in a supportive environment thus clarifying important personal questions such as: What am I good at? What makes me happy? What could be my future path in life? The teaching is based on positive motivation, dialogue and the equal and friendly relations between students and teachers. 10

International basic schools Education in municipal international basic schools covers the pre-school class and 1st-9th forms. The education must be up to what is generally required in the Folkeskole. Based on the local council’s decision, the language of instruction at a municipal international basic school is English, German or French. In the subject Danish, the language of instruction is Danish. The local council may decide that the education provided at the municipal international basic school should be certified internationally. It is, however, at precondition that the education continues to be up to what is generally required in the Folkeskole. The local council has to pay all expenses relating to municipal international basic schools. Consequently, the local council cannot require parents to pay school fees at a municipal international basic school. Payment must, however, be demanded from the parents of children who participate in the school-based leisure-time facilities of the school. If a student at a municipal international basic school is resident in another municipality than the municipality of the school, the local council of the municipality of the school may demand payment from the municipality of residence for the expenses relating to the education of the child. Further information can be found at the local school authorities’ website of your municipality. SU and financial aids Once they have completed their secondary education, Danes can choose from a variety of tertiary options, including a standard university that grants bachelors, masters', and PhD degrees; a university college that awards bachelors degrees in hands-on subjects such as social work; or a public arts and architecture academy, like The Royal Academy of Music. Full-time students in Denmark are eligible for Statens Uddannelsestøtte, or SU (limited income support) from the government alongside other work they do to help pay their expenses while studying. If you are a foreign citizen, you must fulfil specific conditions in order to be granted equal status with Danish citizens and receive state educational grant (SU). There are, in general, two sets of rules according to which you can apply for equal status: Danish rules or the rules of EU law. Depending on the rules under which you apply, there are different conditions that you must fulfil. You can gain “equal status according to Danish rules” if: - you came to Denmark with your parents - you are married to a Danish citizen 11

- You have worked in Denmark - You have resided in Denmark for a minimum of 5 years and others… You can also fall under “equal status according to EU law” if: - You work in Denmark - You have resided in Denmark for a minimum of 5 years - You are the child of an EU/EEA citizen - You are married to an EU/EEA citizen - You are the parent of a EU/EEA citizen You can read more and find out under which category you fall and how to apply at www.su.dk Learning Danish Learning Danish is key to integrating into Danish society and will also help you on the job market. “Lærdansk” is a language center specialized in teaching Danish to foreigners, helping them to get from basic level to the highest “Studieprøven” which gives the possibility of enrollment into Danish courses at the University. Lærdansk offers a special course for spouses and partners, in which you’ll be taught spoken Danish, pronounciation an from there you can switch to the public course Danish Education 1, 2 or 3. Learning the language is crucial to build a network in your new community and it is a boost into finding a job. At the same time, attending group classes will enable you to create a network also among recently arrived people in your area. “Danish Education 1, 2 and 3” are courses for learning how to write, speak, read and understand Danish with topics applicable to your everyday life. Each level comprises 6 modules with defined learning goals, and each module concludes with a test to assess if you are ready or the next module. There are tuition fees to enroll for Danish courses. Course Fee: 2 000 DKK per module. Deposit: 1 250 DKK. The deposit will be refunded when you complete or interrupt your course. Students who receive public social benefits in Denmark are exempt from payment. You will receive further details about payment when you sign up. There are other schools and other possibilities other than Lærdansk, but you should check with your municipality. 12

Housing Affordable housing has been a jungle to maneuver in for a number of years, especially in the student cities Aalborg, Odense, Aarhus and Copenhagen. Typically, there is always an abundance of very expensive apartments in the city center. The farther from the city center the greater chance of availability at an affordable price. The housing market is comprised of commercial accommodation and non-profit housing. Commercial Housing As commercial housing has a focus on profit, and the speed of the market requires quick decisons, ruthless landlords, exaggerated rents and various scams can quickly become a headache. Danish housing is mostly internet based and you will not find as many options in the national newspapers compared to other countries. Accommodation is typically not furnished. If it is furnished, both the advertisement and the price will reflect this fact. Typical sources for apartment hunting can be found at for example the following companies: - Lejebolig.dk - Boligportal.dk - DBA.dk Non-profit housing Non-profit housing is the most affordable and least problematic housing option in Denmark, as it operates under tighter regulation and utilizes waiting lists at a small annual fee, approximately 100-200 DKK. Non- profit housing never comes furnished. Organizations renting out social housing includes the following. - Dansk Almennyttigt Boligselskab (All Regions) - Boligøen (Funen only) - Danmark Bolig (All Regions) - Domea.dk (All Regions) What to remember Never pay a deposit in cash, and always have the full amounts listed in the contract. A potential landlord can ask for a deposit up to 3 months rent and pre-paid rent also in the amount of three months rent, never anymore than this. Always write a letter detailing all flaws regarding the house. Get proof that you have sent the letter to your landlord before the 14-day limit. A registered letter is advisable and will serve as sufficient proof. Remember that even small flaws should be mentioned as otherwise you may be liable for repairing it when moving out. Taking pictures is also advisable. 13

Always check if the landlord is in fact the owner. You can do this on www.ois.dk. When meeting with a potential landlord make sure to know how the person looks like ahead of the open house. Social media can be useful for this. Always pay your rent on time. Late payments may incur penalty fees and ultimately eviction. Always check the contract if the accommodation is time-limited. Time limitations have two pitfalls. You have no right to live in the house beyond the date stated in the contract, and if you move out before the lease is up, you are still be liable for fulfilling the contract. Rent levels Most renters of private housing in Denmark pay too high of a rent level, as rent is regulated by Danish law. It is difficult to tell exactly how much is too much, but if you are paying in the excess of 1.000 DKK per square meter annually, for a non-modernized housing option, you are probably paying too much, and have the possibility to have your rent lowered should a court decide so. Lejernes Landsorganisation (LLO) One way to avoid many of the pitfalls is to become a member of LLO, but this would most likely only be extra useful should you choose accommodation from a for-profit landlord. A membership may be money well spent if you run into an unreasonable landlord. The signup fee includes six months of membership at the cost of 990 DKK, followed by a biannual fee of 495 DKK. Culture and Leisure When it comes to cultural experiences and leisure, Denmark has a lot to offer. No matter what you are interested in, from sports, music and movies to fine arts, opera or museums – you will find it here. The Danish lifestyle is deeply connected with the diverse Danish weather: during summer long daylight hours leave time for sunbathing, swimming, pic nics, outdoor sports and social events; while the dark and cold winter calls for the Danish “hygge”. ‘Hygge’ is a very important term in Denmark, which covers the warm and friendly atmosphere of spending quality time with friends, family or other loved ones. Danes in general are bicycle-friendly, there are long bicycle lanes that get never empty, not even during the winter. Denmark is sometimes referred to as ‘a nation of associations’. This is due to the fact that almost no matter what kind of hobby you have, or what you like doing in your spare time, you can find a Danish association on the subject. Almost all Danes are member of some kind of association or club. Becoming and being a member of an association is usually not expensive, as they are mostly run by volunteers. This is important because it 14

means you are able to socialise and practice something you like – with others who feel the same way – without having to pay a great sum of money. Sport activities in the Danish culture Sport is considered an important national and social activity in Denmark. The Danish government has an objective that sport should be available for all, and there is a wide range of options for those interested in following, or indeed partaking in, sporting activities across the country. The national, regional and local parks are free and open to everyone, providing a broad selection of facilities - picnic areas and campsites, walking and cycling paths and horse riding trails. In Denmark, getting involved in sports is seen as essential not just for health, but also for social cohesiveness and even democracy. Sports are where people from different backgrounds get together and interact. Three out of four Danish children participate in sport on a regular basis, and about half the adults in Denmark are members of an athletic club. Even the elderly keep fit with activities tailored to their age range, from group aerobics to weightlifting. Newcomers to Denmark are usually urged to join a sports team as soon as possible. Handball is a Danish passion. Professional team handball draws large crowds in arenas and on television, and amateur handball facilities can be found all over Denmark. The game is fast and aggressive, with as many as 30 goals in an hourlong match. Both men and women play it, and the Danish women’s team gas won more gold medals than any other country. With more than 8,700 Km of coastline and 600 lakes, rivers and watercourses, sailing, fishing and other water-based pursuits are popular in Denmark. Swimming is also a popular sport in Denmark, and public swimming halls are available all over the country. Most Danish children learn to swim at school. Football is also very popular in Denmark; Danish football clubs have a membership of more than 330,000, a big number in a country with a total population of 5.8 million. While the Danish National Team does not often defeat its opponents from more established football powers, the victories it claims are celebrated and remembered. When meeting Danes of a certain age, you can get the conversation started by recalling the glories of the 1992 European Championship, when Denmark beat Germany 2-0. General benefits and allowances - overview Maternity benefit: Public sector employees receive full salary during maternity leave. Private sector employees are entitled to a minimum level of maternity benefit, which is subject to negotiation with the employer. Parents who are not entitled to paid maternity leave from their workplace can receive maternity 15

maintenance from their municipal office in their place of residence. In order to claim this payment, the local municipality should be contacted no later than eight weeks after the birth. Child and youth allowance: Parents who are tax resident in Denmark receive child and youth allowance (børne- og ungeydelsen, also called børnecheck). This is paid automatically every three months into a NemKonto account (an account specifically designated to receive payments from the public sector). The amount paid depends on the child's age and is paid until the child is 17. Holiday Pay: Everyone working in Denmark is entitled to five weeks paid holiday in a \"holiday year\". If the employee has only been employed for a short time, 2.08 holiday days are earned per month of employment. The holiday pay is automatically paid in to the NemKonto account. Sickness benefit: Under the Danish Sickness Benefit Act, sickness benefits are paid to the employee for the first 14 days of the employee's absence. After 14 days, the sickness benefits are paid by the local authority. The employee receives 90 percent of their salary or a maximum of DKK 3,016 per week. The employee cannot receive sickness benefits for more than one year. Disability benefits: Services and benefits for people with disabilities are financed by local authorities. A home help can also be provided if the local authority considers it necessary. Local authorities also offer personal assistance schemes and socio-pedagogical support for those who need it. Reimbursement of extra costs may be granted depending on the specific situation (this can include extra transport, or help with day- to-day tasks within the home). Housing benefits: Housing benefit is a grant that you can get to help pay your rent if you are renting a home with your own kitchen or kitchenette. Whether you have the right to housing benefit, and how much you receive, will depend on things like your rent, your income, your assets, the size of your home and how many people live in it. Udbetaling Danmark will recalculate every month and at the end of the year your housing benefit, if your income has changed, but remember to tell anyway if anything in your situation changes. Furthermore, you have to live at the residence for more than half the time of your tenancy in order to get housing benefit. If you are receiving cash benefit, it may have an impact on your housing benefit. If there are more than one person in the household, only one of you can receive housing benefit: the housing benefit will be paid to the applicant or the housing organisation. The housing organisation will deduct the amount directly from the rent. The housing benefit it tax-free. FINANCE AND TAXES 16

Registration and healthcare card CPR number: Everyone who lives in Denmark is required to have a civil registration number called a CPR number. All residents in Denmark need to have a CPR number. You need it to open a bank account, access your health insurance, borrow books from the library, pay tax, receive a salary and so on. Facts about the CPR number: - The CPR number consists of ten digits. The first six digits are your date of birth (day, month and year) while the last four digits provide a unique identification number for all citizens in Denmark. The final four numbers also indicate your gender, ending in even numbers for women and odd numbers for men. - You can only obtain a CPR number after you arrive in Denmark - You will receive a yellow health card (sundhedskort) in 4 weeks after you are registered in the Civil Registration System (CPR). Health Insurance Card: When you have registered at Citizens’ Services and been issued a CPR number, you are covered by the Danish health insurance system. A yellow, credit card sized Health Insurance Card will be sent to your address. General information about the Health Insurance Card Your Health Insurance Card is proof that you are covered by the Danish healthcare system. You will have to present your Health Insurance Card in connection with all healthcare services, such as GP or hospital visits - including visits to the accident and emergency department. Your health insurance card is also often requested as a means of proof of your CPR number. You will be asked for your health insurance card by most public and many private service points as a means of identification of your CPR number. It is recommended that you always have your health insurance card with you. What is a Health Insurance Card? Your Health Insurance Card proves that you are covered by the Danish National Health Insurance. It is a yellow plastic card the size of a credit card. 17

The Health Insurance Card is sometimes also referred to as the Yellow Card, because of the yellow color of the card. The card states your name, your address and the name and address of your general practitioner. It also carries the municipality that issued the card and the date from which the card is valid. You must sign your card in the white space provided on the back. How to get a Health Insurance Card? To get a health insurance card you need a CPR number. When you register to get a CPR number you will be asked to choose a general practitioner. Read more about the rules for choosing a general practitioner under Choosing a General Practitioner. Your Health Insurance Card will be sent to your Danish address when you have been issued a CPR number and have chosen a general practitioner. When and Where to get a Health insurance Card? You will automatically receive a health insurance card when you have registered at Citizens’ Services and been issued a CPR number. Read more about how and when to get a CPR number under CPR number. The Health insurance card will be sent to your Danish address - remember to have your name clearly stated on the mailbox. Replace a lost or damaged ”Yellow card”? If you lose your Health Insurance Card, you must apply for a new one. You can apply online at www.borger.dk (Danish only) or at your municipality´s Citizens’ Services office. You will receive a new card in the mail 8-14 days after your application has been received. Replacement of lost or damaged cards costs 190 DKK (2016). How to request a NemID What is NemID NemID is a common log-in solution for Danish online banks and public websites. NemID is operated by the company Nets DanID A / S and was commissioned on July 1, 2010. - The idea is that you should be able to use NemID to log in to the institutions that have joined the scheme. You must be able to log in with NemID from any computer, both in Denmark and abroad. What is need to obtain NemID You do not need to be a Danish national to obtain NemID, but you need to have a CPR number and valid ID. To obtain NemID you can go to a citizen service centre, you can request NemID in your bank, or you can request NemID online. 18

E-Boks E-Boks is your online digital mailbox, the official e-mail to communicate with public administration. In E- Boks you can file all your important mail in one secure place. Read your mail whenever and wherever you please. E-Boks can be used anywhere. You can access all your mail - wherever you are. Use e-Boks from your computer, tablet or mobile phone. It's that easy. Banking Choosing a bank The most important step you must take before trying to open a bank is to register as resident in Denmark and be issued with a personal registration (CPR) number. Which bank is the best choice for foreigners living in Denmark? In a recent survey the most popular choice amongst the responses one received was Nordea, which is part of a large Nordic financial group. This is because many clients reported a good English service, accounts with low fees, and good mortgage offers. Were any other banks recommended? Yes, Danske Bank and Vestjysk Bank were also recommended as good banks for foreigners to open Danish accounts. In the case of the former, a good English-language website and app was considered a winning feature by more than one reader. Were there any bank recommended avoiding? Although some recommended it, Danske Bank was also the bank most-often mentioned as the one to avoid, with fees charged by the bank as the most common reason for this. In general, it is advised to be sure you ask about any fees you might be liable to pay before opening a bank account in Denmark with any bank, including annual fees and charges for ATM withdrawals. It is always adviceable to speak to a couple of banks before you make your mind up. - You can find a list of all banks in Denmark via this link: https://internationalcommunity.dk/Files/Images/IC_billeder/Your%20Guide%20to%20Denmark/2018- 09%20overview%20of%20banks%20in%20Denmark.pdf Opening a bank account You need to go to your bank of choice in order to open your first bank account in Denmark. Remember to bring your yellow health insurance card (in Danish: 'sundhedskort'), or your CPR number if you haven't received the health insurance card yet, valid passport, and employment contract (or documents for educational program if you are a student). 19

You can designate your basic bank account as your Easy Account (NemKonto) for the reception of public- sector payments such as child benefits. When opening a bank account, tell the bank advisor that you would like to receive information in English, otherwise you will automatically receive information in Danish. Obtaining a loan Mortgage Loans A mortgage loan is obtained from a mortgage institution (realkredit institut). When you take out a mortgage loan, the money is raised by the mortgage institution selling bonds to some investors. In order to be able to take out a mortgage loan, you must own a house or another type of real estate / property, as the mortgage institution will need to secure their lending in your property. Most often your bank mediates the mortgage loan. If you're buying a home or refinancing your property, you face a bewildering number of borrowing options: fixed or adjustable rate, capped or interest-only? We can help you understand the variety of loans and features available so that you can select the best solution for your family's circumstances. Examples are outlined by ”Danske Bank”: - Fixed rate: predictable payment schedule. - FlexLån®: interest rate is typically lower than on fixed rate loans but is adjustable and may rise during repayment period. - FlexGaranti®: adjustable rate loan with a guaranteed interest rate ceiling. - Danske Prioritet: offset loan linked to a deposit account (interest rate is variable and can rise immediately if official rate rises). The best solution for you is subjective, and depends on whether you prefer security or whether you want to benefit from possible interest rate adjustments. Bank Loans Do you need a new kitchen, a new car or similar you would most often finance this throught a bank loan, which is a personal loan that you are granted from your bank, which you – like the mortgage loan – pay 20

back in instalments. The bank bases its loan offering to you on an individual assessment of your financial position Moreover, loans, credit and debit cards, and other credit facilities are in general subject to credit qualification by the bank. Insurances Most insurances are voluntary in Denmark. But, a few types are mandatory by law: Work related insurance In Denmark, the employers are obligated to take out occupational injury insurance. You are covered by your employer’s insurance in connection with your job. Employer’s insurance does not cover your leisure time. Unemployment insurance is, unlike in many other countries, voluntary in Denmark. You can choose to register with an unemployment insurance fund (“A-kasse”). Private insurances In Denmark the following three insurances are mandatory by law: 1. If you own a car ( moped or motor bicycle), you must take out third-party liability insurance. 2. The same goes for dog and horse owners, as you are legally required to have insurance that can cover any damage your dog/horse may inflict on another person or animal. 3. If you choose to buy a house rather than renting, you cannot take out a mortgage without having house insurance, which includes, as a legal minimum, building and fire insurance (in Danish: Bygnings og Brandforsikring). All other private insurances are voluntary. For instance, the basic family insurance (“familiens basisforsikring” or “indboforsikring”) is voluntary. In most cases it consists of: - Contents insurance covering personal property in the event of theft, fire, or water damage - Personal liability insurance - Legal protection, covering lawyer expenses for certain legal matters In addition, it can be reassuring to have a private accident insurance. In Denmark, social security is covered by the Danish state, but as a supplement there are private health insurances. 21

In order to insure yourself, you can take contact to an insurance company: there are many, easy to find on the Internet. Generally, insurance papers in Denmark are only available in Danish. Prerequisites for an insurance: An insurance policy cannot prevent the occurrence of any loss, damage, injury or accident, but it can offer you a source of financial relief. The purpose of insurance is to restore you to the same financial situation as before you sustained the loss. In principle everything is insurable, but the following preconditions have to be met: - The person taking out the insurance must have a legal interest in the property - Many people have to be exposed to the same risk - The loss must occur by chance - The insurance company must be able to calculate the risk and cost of the loss. In Denmark yuo will find different types of insurance policies covering you in your every day life, as for example: - Liability - Personal liability insurance - Universal coverage - Dog-owner’s third party insurance - Horse-owner’s third party insurance - Home buildings insurance - Motor insurance - Personal Accident Insurance - Pension schemes Please find more information via the following link: https://www.forsikringogpension.dk/media/1230/insurance_for_everyday_needs.pdf Once in Denmark, you have to decide on the kind of insurances you need and which insurance company you feel confident to take out the insurance policies with. Most importantly, you need to ascertain the insurance coverage you need specifically for Denmark, taking into account what may be legally required. 22

How to choose an insurance company In a new country, choosing an insurance company can be extremely difficult. You will want to know who they are and what they cover, maybe even what their pay-out history has been like. A few large players dominate the Danish insurance market for damage insurance (private property, home, car, accident etc.). The four largest companies have a combined market share of 56%: Tryg (18 %), Topdanmark (17 %), Codan (11 %), and Alm.Brand (10 %) and with only ten companies accounting for 86 % of the total market, it is a highly concentrated one. Of course, Denmark is a small market, and the larger companies are part of larger Scandinavian or international insurance groups. The 15 largest damage insurers (Skadeforsikring) are: 1. Tryg 17.8 % 2. Topdanmark 16.6 % 3. Codan 10.5 % 4. Alm.Brand 9.5 % 5. Gjensidige Forsikring 7.3 % 6. IF 5.6 % 7. Sygesikring Danmark (only health/accident) 5.7 % 8. LB Forsikring 5.3 % 9. Alka 4.0 % 10. PFA Pension(only health/accident) 3.1 % 11. GF Forsikring 3.4 % 12. Danica Pension (only health/accident) 2.3 % 13. Købstædernes Forsikring 1.8 % 14. Himmerland Forsikring 0.7 % 15. Sønderjysk Forsikring 0.7 % 23

Salaries The payslip Where can I find my payslip Your payslip is found in your E-Boks, which is your online digital mailbox. The payslip is sent at the end of every month to your E-Boks from “Moderniseringsstyrelsen” – the Agency for Modernisation Ministry of Finance. Checking my payslip It is your responsibility to check whether you receive the correct salary. Please make sure that the salary and supplements correspond with your contract. It is also important to check the tax rate. If the information differs, you can contact the HR consultant who issued your contract. The salary is paid on the last working day of the month. Please find examples of payslips via the following link: https://ism.ku.dk/salary-tax- pension/Understanding_your_payslip.pdf Holiday allowance Holiday allowance (Feriepenge) is money you earn when you work, which you can use to get paid holidays. Your employer pays part of your salary into your ”FerieKonto” (holiday account), and you can request the outpayment of this amount when you go on holiday, from your FerieKonto-account. Some employees get paid while on holiday instead of receiving a holiday allowance, you can check with your employer how does your workplace cover for your vacations. How much is your holiday allowance Your employer calculates your holiday pay. Your holiday pay is by law 12,5%of your basic salary. This complies with 2.08 days of holiday for every month that you are employed. If you have worked for 12 months, you have earned holiday pay for 5 weeks’ of holiday. The earliest date on which you can receive your holiday pay is the 1st of May, but the new Holiday Act will come into force from 1st September 2020. It will allow employees to take paid holidays in the same year as they accrued. The holiday year will run from 1 September to 31 august. You earn 2.08 paid holidays per month and can spend in the same holiday year or no later than 30 December in following year. 24

Sick leave llnesses can happen to anyone at any time. Even when not feeling well, it may be hard to even think about taking time off work when you have impending deadlines. However, employees are entitled to take sick leave and it’s important to take care of yourself when you become ill. The rules around sick leave for salaried employees can be found in the Salaried Employees Act (Funktionærloven) and the Danish Sickness Benefits Act (Sygedagpengeloven). If you are a blue-collar worker, then sick leave would instead be granted according to the terms stated in your collective bargaining agreement and not these acts. You may think of illness traditionally as something physical, ranging from the flu to more serious conditions where you have to be hospitalized for treatment. In Denmark, mental or emotional illnesses are also recognized, such as depression or stress. The latter can be difficult to grasp, especially if you are a foreigner in Denmark and used to having more ‘stress’ at work in your home country. But if you are legitimately ill, then you can also go out on sick leave in these situations. You could be asked to provide proof of your illness from your doctor at any time. On your first day of illness, you should let your manager know that you are taking the day off and log it according to company procedures. This informs your employer (especially the payroll department) that you have taken a sick day, which is important for a couple of reasons. Your company has to pay you during sick leave, but if you are going to be out for more than 30 days, your company will be eligible for partial reimbursement by your municipality. It’s also important that there is a clear first day of illness logged, if it turns out to be a long illness. You don’t have to divulge the nature of your illness, but the company has the right to ask you for a ‘Fit for Work’ certificate. This applies to both short-term and long-term illnesses. This certificate is something that you would be asked to submit usually within two weeks of the request. You and your employer would fill out one part, and your doctor also has a part in the completion of the certificate. The overall point is to evaluate how the illness has impacted your ability to perform your job duties. If you end up taking a long period of sick leave, then your employer will contact you about conducting a sickness absence interview. This is a mandatory interview that has to be completed within four weeks from 25

the first day of the illness. The employee is also obligated to attend, which can be in person or by phone, unless there are extenuating circumstances due to the nature of the illness. The purpose of this interview is to talk to you about making a plan to come back to work. If you think that you will be on sick leave for more than eight weeks, then the employer is entitled to ask you for a return- to-work plan. The terms of your return can be discussed and agreed upon, according to what makes sense in your situation. You could, for example, ask to return on a part-time basis at first and gradually work back up to full-time. Child’s first sick day In addition to your own illnesses, many companies allow for taking time off if your child becomes ill. This is referred to in Danish as barnets første sygedage. You’ll need to check if your company gives this benefit as it’s something that’s given through agreements with the company rather than legislation. The way the benefit generally works is that on the first day that the child is ill, parents can take the day off to care for their sick child, provided that the child is below a certain age (such as 18) and lives with the parent (or at least to a certain extent). Some companies also give a second child’s sick day, which works the same way, but it could be that the other parent stays home with the child on the second day. Tax System Taxation in Denmark: The Danish welfare state is, among other things, based on the concept of citizens having equal access to the different services paid for by taxes. - Everyone must be able to get help in situations, such as unemployment or illness. - All children must attend school and have the possibility of completing an education. - All citizens must have access to information and guidance (for example from libraries and media). - The public sector provides numerous services. Denmark has a progressive tax system All citizens use the public sector in some way, and as a general principle all citizens must thus help pay for it. The tax funds are used to pay for the different expenses that Danish society has such as welfare benefits, state pension, child benefits and for public institutions such as schools, hospitals, libraries and the police. 26

The Danish tax system is progressive. This means that the higher your income, the more taxes you have to pay. In many other countries citizens pay less tax than in Denmark, but in return they have to pay to go to school, to the hospital, the doctor's, etc. Denmark has its own Minister of Taxation, Ministry of Taxation and its own taxation laws. A-skat and B-skat If you are an employed by a company you are liable to pay A-skat of your income. If you set up your own company and start working as a self-employed, you are liable to pay B-skat of the profit you make in your company. Please find more information about taxation in Denmark via the the following link: https://www.skat.dk/getfile.aspx?id=140479 A-tax (tax deducted from income at source) This is tax deducted directly from your income. Income tax is collected during the year by your employer, pension provider, etc. withholding part of your salary or pension before it is disbursed. This also includes property value tax based on the public property assessment. The amount withheld is paid to the Danish Tax Agency (Skattestyrelsen) as provisional tax. At the end of the year, a calculation is made to determine whether the amount paid is more or less than the tax payable for the whole year. B-tax (tax not deducted from income at source) Some people also pay B-tax, which is tax that is not deducted directly from your income, such as tax on interest income and business profits. Direct and Indirect taxes The Danish tax system consists of direct taxes and indirect taxes. This section contains the most common types of tax. Direct taxes: - A-tax (tax deducted from income at source) - B-tax (tax not deducted from income at source) - State tax - Municipal tax - Health contributions - Church tax - Labour market contributions - ATP contributions - Property value tax based on the public property assessment 27

- Property tax (land tax) - A-tax and B-tax: see previous paragraph. State tax Part of the tax that you pay out of your income goes to the state. The state tax rates are the same irrespective of where you live in the country, but they depend on your income. The state tax is calculated as a progressive tax and is divided into two categories: Bottom-bracket tax Top-bracket tax Municipal tax All citizens must also pay tax to their municipality. The tax is calculated as a percentage of their income. Each municipality determines the tax percentage that its citizens must pay. Your total tax contribution will therefore depend on the municipality that you live in. Health contributions Health contributions are a state income tax payable by everyone who has taxable income above the personal allowance. The contribution is deducted from your gross pay. Church tax Approx. 80% of the Danish population are members of the Danish National Evangelical Lutheran Church (Folkekirken), and the members pay church tax. This tax covers the running and maintenance of the churches in the municipality. The size of the church tax varies from municipality to municipality, and it is collected together with the other direct taxes. If you are a member of another church or religious association and you pay a contribution to this, your contribution may be tax deductible. To not to pay this tax you have to declare yourself as not a believer. Labour market contributions (AM-bidrag) All working citizens must pay labour market contributions. Your employer will deduct the contributions from your pay. Labour market contributions are used for the Government's labour market expenses, for example to cover unemployment benefits, supplementary training courses and maternity. It should be noted that the labour market contributions are actually a tax, deducted from employees' gross pay, or self- employed persons' income from self-employment. ATP contributions Everyone who works in Denmark must pay contributions to the Danish labour market supplementary 28

pension fund (ATP). The contributions will be deducted from your pay before the calculation of income tax. As a general rule, you pay a third of the amount yourself, and your employer pays the other two-thirds. For information about what will happen to your ATP contributions if you leave Denmark, please visit lifeindenmark.dk. Property value tax based on the public property assessment If you own a house or an apartment, you must pay property value tax based on the public property assessment. The property value is assessed by the Danish Tax Agency every other year. People living in Denmark must also pay property value tax on any foreign property that they own, and people living abroad must pay property value tax on any property that they own in Denmark. Property tax (land tax) If you own a house, an apartment or a plot you must also property tax to the municipality based on the actual property value. The property tax is assessed and collected directly by each municipality and will differ from municipality to municipality. Indirect taxes: - VAT - Green taxes - Excise duties - Customs duties Indirect taxes are taxes and duties that you pay via the goods and services you buy. You pay indirect taxes to the state every time you buy an article or every time you, for example, open your water tap. The indirect taxes are included in the price that you pay for the goods/services. The seller is responsible for paying, for example, VAT, customs duties and excise duties to the state. VAT In Denmark VAT is included in the price of nearly all goods. VAT is also levied on services, for example, having your bicycle or car repaired, a visit to the hairdresser's etc. Green taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes you must pay. The idea is to make citizens try to limit their consumption and thus conserve the natural resources. For example, green taxes are levied on petrol, oil, electricity, water and waste. This means that the price of these resources increase, which is the intention. If the price of petrol 29

increases, people will do less driving which will limit the impact on the environment. Lower green taxes are imposed on environmentally friendly cars that pollute less and are more fuel-efficient. Excise duties Excise duties are levied on the import, manufacture and sale of certain goods. When you buy an article at a shop, the excise duty has already been paid, so as an ordinary customer you do not have to worry about this. Goods on which excise duty is imposed include wine and beer, batteries, chocolate, sweets and soft drinks. If you buy a car or a motorcycle, you will have to pay an additional registration tax. Customs duties Customs duty is a tax which you pay to the state. If you have travelled to a non-EU country and bought goods that you are bringing back to Denmark, you may have to pay customs duties. This depends on the total value of the goods that you have bought. A special set of rules applies to spirits and tobacco for which you must pay customs duties if you bought a certain volume. You must declare what goods you have bought and pay customs duties upon arrival to Denmark (for example, at the airport or the border crossing). Tax deductions and allowances (Skattefradrag) Everybody who has an income is entitled to tax deductions and allowances. The total amount you end up paying in tax depends on your deductions and allowances. Having deductions and allowances means that you can earn a certain amount of money without having to pay tax. For example: if your withholding rate is 40%, then 40% is deducted from the part of your pay which exceeds your deductions and allowances. Your employer makes the deductions from your pay and calculates your tax before paying you. If you are married and do not use all of your deductions and allowances, they (or what is left of them) are transferred to your spouse. This is particularly relevant if one of you has no income. Personal allowance (Personfradrag) As taxpayers we have a personal allowance which tells us how much we can earn without having to pay tax. In 2018, the personal allowance for individuals over 18 years of age is DKK 46,000. - Other tax deductions and allowances (Andre fradrag) - Certain deductions and allowances are only granted if you have certain expenses. These include: - membership fees to a union or an unemployment fund - certain pension scheme contributions 30

- child support payments (set by the government in your home country and in agreement with your former spouse) - interest payments on loans - expenses for transport (more than 24 km) between home and work The Danish Tax Agency will be informed about most of your deductions and allowances, however, you will have to provide information on some of them. Income from capital (Kapitalindkomst) Income from capital is income from interest and investments. If you have savings in the bank generating interest for you or if you have shares or similar, you must pay tax on your profit. Your income from capital may be positive or negative, depending on whether you have made a profit or a loss on your investments. Accordingly, your income from capital must be either deducted from or added to your earned income before your tax is calculated. Labour market supplementary pension fund (Arbejdsmarkedets tillægspension) The labour market supplementary pension fund is a pension scheme to which all employees contribute from the age of 16 until retirement. If you receive daily benefits in the case of unemployment, sickness or maternity/paternity leave (dagpenge), social assistance benefits and certain other social pensions, you must also contribute to the labour market supplementary pension fund. Each time your employer calculates your pay, he/she withholds an amount for your labour market supplementary pension fund savings. Your employer also pays towards your savings, and when you pay 1/3, your employer pays 2/3. You will receive your labour market supplementary pension along with you ordinary pension when you retire. Setting up your own business A number of newcomers to Denmark dream of starting their own business. Denmark needs new businesses contributing to the Danish society by means of revenue and employment opportunities. If you want to set up your own business, you need to acquaint yourself with certain rules. Firstly, you need to register your business in order to inform the relevant authorities of the type of business you have and in order for them to make sure that you observe the rules and pay the required taxes and duties. As a business owner, you have a number of obligations: 31

- pay tax on the profit of your business - pay VAT on the goods or services you provide - make sure that duties and taxes have been paid for some goods and services (duties) - keep a register - keep accounts of income and expenses If you have employees, you need to keep accounts of their pay, A-tax, labour market contributions, pension scheme contributions, holiday accounts, etc. and ensure that money is paid to the relevant authorities. You can deduct many of the expenses you incur setting up and running your own business, and as a result you will pay less in tax and VAT. In certain cases you can even be refunded duties and taxes paid – another reason to keep proper accounts. Many business owners hire an accountant to do their accounts. Pension System State pension and individual pension: Your pension is paid for by yourself, the government and maybe your employer. In Denmark, you receive state pension from the state of Denmark, but a lot of people choose to also deposit money in a pension company. In some cases, your employer deposits money for your pension. However, that depends on your contact and terms of employment. State pension You may be entitled to state pension when you reach the state pension age. If you are a wage earner, your employer will ensure that part of your wage is paid into a pension scheme. ATP Livslang Pension (ATP lifelong pension) is a pension scheme enforced by law. ATP ensures that you receive extra pension besides your state pension. It is automatically paid to you when you reach the pension age. Individual pension You have the possibility to set up an individual pension scheme. For that you need a private pension company. There are a lot of those private pension companies in Denmark and Copenhagen, and they are often connected to a bank. 32

Pension Funds In Denmark there are approx. 20 Pension companies. Several large pension companies are well known in the public, while others are smaller and unknown to most people in Denmark. The 5 largest pension companies in Denmark are PFA Pension, Danica Pension and Velliv Pension, Pension Denmark and Topdanmark Pension. These 5 Pension companies have a total market share of approx. 60% in the pension market in Denmark. Market shares are calculated by gross premiums. Regardless of which Pension Fund you choose, you will have to choose among the following schemes: Retirement Savings From 2013, you can set up a retirement savings scheme. The funds are typically disbursed as a lump sum for you to spend whenever you want. This means that you get a large amount once, instead of smaller amounts issued regularly. But you can also opt for several, smaller disbursements – and you can choose to continue to pay into the scheme while receiving the disbursements. Annuity pension scheme An annuity pension scheme gives you the freedom to conrinue your noemal way of life – even though you have retired from active working life. The scheme guarantees you a regular monthly income when you retire. This gives you financial security because your annuity pension can replace your salary from day one and for instance supplement your early retirement benefits and state retirement benefits for up to 25 years. You can establish an annuity pension scheme right up the day before the deadline for taking your pension, provided that your permanent address is in Denmark. Life Annuity A life annuity pays you a regular income for life, no matter how long you live. There are no limits on how much you can pay into your scheme, or for how many years you can receive your pension income. A life annuity therefore gives you financial security for the rest of your life when you have retired. Everyone with a permanent address in Denmark can set up a life annuity with a Danish Pension fund. You can find more information about the the above described types of pensions schemes at: https://www.danicapension.dk/en-dk/Customers/Advisory-services/Payout-options/Pages/Payout- options.aspx 33


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