Opening a bank account in Denmark as a US citizen

A Danish bank account is close to essential once you live in Denmark. Salaries, rent, utility bills and public payments all run through it, and many everyday payments are digital. For Americans the process has two extra wrinkles: banks need Danish identifiers that you only get after arrival, and US citizenship brings FATCA paperwork that some banks treat cautiously. This guide sets out the order of steps and what to bring, based on Life in Denmark, SIRI and the IRS.

The order of operations

Life in Denmark describes the sequence for newcomers who come to work:

1. Find a home and move in.
2. Register for a CPR number.
3. Get a tax card (skattekort) from the Danish Tax Agency.
4. Open a bank account.
5. Assign a NemKonto for public payments.

Life in Denmark states that you can only open an account with a Danish bank once you have obtained your tax card. To get a tax card you need a CPR number, or a tax number if you are working in Denmark for three months or less.

What the bank will ask for

Life in Denmark says to bring photo ID, such as your passport, and address information. Where you are not yet a registered resident, it notes the bank will want to see your passport, tax card, contract of employment and payslip. Its NemKonto page lists what most banks ask for: proof of identity (passport, driving licence or health insurance card), an employment contract or invitation letter, and your tax card. Requirements vary by bank, so call ahead.

Bring originals, and bring your residence permit or registration certificate as well, since it shows the bank your legal basis for living in Denmark. Banks verify identity under anti-money-laundering rules, and copies are often refused.

The right to a basic account

Life in Denmark explains that Danish banks must offer a basic payment account to consumers with legal residence in the EU or in a country with which the EU has a financial agreement. A bank can still refuse in certain cases, for example if you already have a payment account at another Danish bank. If a bank turns you down, ask for the reason in writing and try another bank.

NemKonto

Every resident should designate a NemKonto, the account where public authorities pay tax refunds, child benefits, holiday allowance and similar payments. Life in Denmark explains that a NemKonto is an existing account, Danish or foreign, that you choose. You need a CPR number to register it. You can assign it yourself through NemKonto self-service with MitID, ask your Danish bank to do it, or use a form for a foreign account. It is free. Authorities can only pay money into a NemKonto; they cannot withdraw or see your balance.

MitID and online banking

Danish online banking uses MitID. Once you have a CPR number you can get MitID. Your bank links MitID to your accounts. Without it, you will rely on branch visits, which are limited at many Danish banks.

FATCA: why banks ask if you are American

Under FATCA, foreign banks report accounts held by US persons to tax authorities, which pass the data to the IRS. Danish banks will ask you to complete a self-certification of tax residence and may ask for your US Social Security number as your US taxpayer identification number. Have your SSN ready. Answer the citizenship questions accurately: US citizens are US persons for FATCA purposes regardless of where they live.

Your US reporting

Your Danish accounts create US filing obligations:

• FBAR (FinCEN Form 114). Required if the combined value of your foreign financial accounts exceeded $10,000 at any time during the year. It is filed electronically with FinCEN, separately from your tax return.
• Form 8938. Under FATCA, taxpayers living abroad file Form 8938 with their return if foreign financial assets exceed higher thresholds. The IRS lists $200,000 on the last day of the year or $300,000 at any time for single filers, and $400,000 or $600,000 for married couples filing jointly.

Interest earned on Danish accounts is taxable on your US return and must be reported in Danish tax filings as well.

Before your CPR arrives

The gap between arrival and a working Danish account can be several weeks, because each step depends on the one before. Plan to cover rent, deposit and daily spending from US accounts in that period. Tell your employer which date you expect to have a Danish account so the first salary payment is not delayed, and give them the account details as soon as you have them.

MitID requirements

Life in Denmark states that MitID is available to people aged 15 and over with a CPR number. Children under 15 cannot have their own MitID, so parents manage children's digital matters through their own login.

When you leave Denmark

Before you move away, update your NemKonto if you close the Danish account, since final tax refunds and holiday allowance are paid there. A foreign account can be assigned as NemKonto with the form Life in Denmark links to, which lets final public payments reach your US account.

Keeping a US account

Keep at least one US checking account and a US credit card open. You will need them for US bills, tax payments and credit history if you return. Some US banks close accounts when they learn the customer lives abroad, so check your bank's policy and update your address carefully.

Moving money between the US and Denmark

International transfers can be expensive at both ends. Compare your Danish bank's incoming transfer fee and exchange margin with specialist money transfer services, and look at the total cost, not only the advertised fee. For large transfers, such as a house deposit, ask both banks in advance about limits and documents they will want.

Checklist

• Passport and residence permit.
• CPR number and yellow health card.
• Tax card confirmation.
• Employment contract and a recent payslip.
• Danish address and lease.
• US Social Security number for FATCA forms.

Common questions

Can I open a Danish bank account before I arrive? Usually not. Life in Denmark says you can only open an account with a Danish bank once you have your tax card, which needs a CPR number or tax number obtained in Denmark.

What is a NemKonto? An existing Danish or foreign account you designate to receive payments from public authorities, such as tax refunds. You need a CPR number to register it, and it is free.

Why does my Danish bank ask for my Social Security number? FATCA requires foreign banks to identify US persons and report their accounts. Banks use your SSN as your US taxpayer identification number on the self-certification.

Do I need to file an FBAR for my Danish account? Yes, if the combined value of all your foreign financial accounts exceeded $10,000 at any time in the year.

Can a Danish bank refuse to open an account for me? Banks must offer a basic payment account to consumers with legal residence in the EU or a country with an EU financial agreement, but Life in Denmark notes they can refuse in certain cases, such as when you already hold a payment account at another Danish bank.