Opening a NemKonto bank account in Denmark

Opening a NemKonto bank account in Denmark

The Danish system is characterized by a high level of digitization, making it possible to do most things online. NemKonto is a key and essential part of this system. It is a bank account that receives funds from public institutions in Denmark, such as tax refunds, Feriepenge and vacation benefits. It’s virtually impossible to receive money in the form of a check, so setting up a NemKonto is one of the most important formalities to complete once you start working in Denmark.

The employee independently chooses the bank account that will serve as the NemKonto. It can even be a foreign bank account. It is important that it is an account that we have easy access to and that we do not plan to change soon.

Establishing a NemKonto in Denmark can be a complex process, especially for those who have just arrived in the country or are not familiar with local administrative procedures. Radner offers comprehensive assistance in setting up a NemKonto to ensure your comfort and confidence that all paperwork will be handled correctly and without unnecessary complications.

What is a NemKonto?

NemKonto is a standard bank account that every person residing and working in Denmark should have. It is used to withdraw any amounts due from public institutions. It can be any account you indicate – new or existing.

It is important to set up this account as soon as possible after you start working in Denmark, so that you can receive all the money due to you. It’s not worth delaying in assigning the account as a NemKonto – the sooner you arrange it, the better. If you need help with the paperwork, we offer professional support in this regard.

NemKonto is an initiative within a project aimed at digitizing the Danish public sector. Registering this account is completely secure and improves the flow of information between Danish institutions and citizens. NemKonto allows various public entities in Denmark to transfer funds directly to the taxpayer’s bank account.

By registering your account with NemKonto, you can rest assured that the information being transferred is secure.

NemKonto receives receivables such as:

  • salaries for work,
  • pensions,
  • tax refunds,
  • child allowances,
  • unemployment benefits,
  • housing allowances,
  • vacation fund payments (feriepenge).

Advantages of NemKonto

NemKonto provides convenience and security, allowing you to quickly receive funds from various public institutions. As a result, there is no need to collect checks or visit administrative offices, making it much easier to manage finances.

There are numerous benefits of using NemKonto for the government, citizens, and companies:

  • You no longer need to visit the bank to cash checks from public institutions.
  • You can assign or update your account information in one place.
  • Public offices save time and money by avoiding cash or check payments.
  • Public authorities spend less time updating account information.

NemKonto is an essential financial tool for Danes to receive payments from public institutions easily and efficiently. It allows Danish citizens to effectively manage their finances and take advantage of the various benefits offered by the state.

How to open a NemKonto in Denmark?

To open a bank account in Denmark, you will need a CPR number. This is a nine-digit identification number, consisting of your date of birth and four unique digits. The CPR number is given to every person liable to pay taxes in Denmark, as well as to all citizens and residents over the age of 18.

What documentation is needed to open an account?

The necessary documents may vary by bank. Generally, most banks ask for:

  • Proof of identity (such as a passport, driving license, or health insurance card)
  • Employment contract or invitation letter
  • Tax card (optional)
  • For US citizens only: American social security card

You can set up a NemKonto in one of the following ways:

  • Assign an account yourself using MitID on NemKonto’s self-service portal.
  • Contact your Danish bank and inform them which account you want to designate as your NemKonto.
  • Fill out a form if you wish to designate a foreign bank account as your NemKonto.
  • Assigning an account as your NemKonto is free of charge.

If you use NemKonto’s self-service portal, an activation letter will be sent to you. When you assign or change your NemKonto via the self-service portal, an activation letter with an activation code will be sent to you. The letter includes instructions on how to activate your NemKonto. The activation letter will be mailed to the address listed in the CPR register. Currently, it is not possible to receive this letter via email or Digital Post.

To open an account in Denmark, you will need the following documents:

  • passport,
  • Danish CPR number,
  • proof of address in Denmark (e.g. utility bill, rental agreement, official government document).

Some banks may also ask for proof of employment or a certificate from a university.

Step by step:

  1. Preparation of documents:
  • Passport or other identification document.
  • Danish CPR number (identification number).
  • Confirmation of address in Denmark (e.g., utility bill, rental agreement).
  1. Filling out the form:
  • Download and complete the NemKonto registration form available on the Danish Digitaliseringsstyrelsen website.
  1. Registration methods:
  • Online: If you have a Danish bank account and a NemID or digital signature, you can complete all the paperwork online at nemkonto.dk.
  • Traditional method (for foreign accounts):
    • Fill out the form manually.
    • Obtain a notarized signature OR the details and signatures of two witnesses (including their personal information, addresses and ID numbers).
    • Attach a copy of your identity document (driver’s license, passport or ID card).
  1. Submitting the form:
  • For Danish bank accounts, arrange everything online.
  • For foreign bank accounts, send the completed form and additional documents by mail to a Danish address.
  1. Receive an activation code:
  • Within 30 days of submitting the form, you will receive an activation code by mail.
  • The activation code will remain valid for 30 days. Use it as soon as possible to activate your NemKonto.
  1. Account activation:
  • Call the phone number provided in the letter with the activation code.
  • Enter the code using the automated system to activate your NemKonto.

Once activated, your NemKonto will be ready to receive payments from public institutions in Denmark.

When setting up a bank account in Denmark for the first time, we will most likely have to visit one of the bank branches in person. To book an appointment, contact the branch of your choice.

Setting up a NemKonto is free of charge. Foreigners with MitID can assign any Danish account to their NemKonto electronically, which is not a complicated procedure. You do not need to be a Danish citizen to obtain a MitID, but it is necessary to have a CPR number and a valid identity document.

Activating a NemKonto is not complicated. The easiest way is to do it electronically using MitID at nemkonto.dk. Those who do not yet have access to electronic login can also set up NemKonto. This requires:

  • Filling out the appropriate form.
  • Authenticating the form with a notary public or obtaining the signatures of two witnesses.
  • Sending the form by mail, along with a photo of an identity document.

Then you have to wait for a response and authentication.

To set up a NemKonto, you need to fill out a special application form, attach a photo of a valid ID card and get proof of identity from two witnesses (also on the form). All documentation should be sent to the Danish postal address designed to handle such matters. Within 30 days of sending the form, you will receive an activation code in the form of a return letter.

A foreign bank account can also serve as a NemKonto, but it can only be registered in the traditional way – by sending a form by mail or visiting the office in person. In addition, we will need written confirmation of our identity by two people, along with their detailed personal information. Once the application is successful, we will receive an activation code and further instructions for registering NemKonto within 30 days.

Anyone who is legally resident in Denmark or within an EU/EEA country has the right to open a basic deposit account and a basic payment account with a Danish bank. This right also extends to consumers who do not have a residence permit but cannot be deported.

A month or two after submitting the form, we will receive an activation code, which will be used to activate the account. The code is only valid for 30 days, so use it as soon as possible. After this time, the code will lose its validity and you will have to start the whole procedure from the beginning.

NemKonto will be used for all transactions with the tax office and other administrative authorities. The average waiting time for a decision from the tax office is 3 to 6 months.

Is it possible to open a bank account in Denmark before arriving in the country?
Many banks offer online banking services and allow you to begin the process of opening a bank account before you arrive in Denmark. However, depending on your status, some traditional banks may require you to present your documents, including your CPR number, at a local branch once you arrive. This means you might not have a fully operational Danish bank account immediately upon arrival.

If so, a good alternative is to open a Danish bank account with a reputable online bank. The verification process is straightforward, and you can have your card mailed to your current address before you relocate. However, keep in mind that if you want all the services and security features of a traditional bank, you should choose a bank with a full banking license instead of an e-money license.

How to register a NemKonto in Denmark?

To create a NemKonto, you need to fill out and submit the appropriate application to the Danish tax authority SKAT. If you want to use a Danish account, this can be done online using NemID or a digital signature. A foreign bank account can be registered as a NemKonto without a problem. It doesn’t matter to the tax office whether the account was established in Denmark or abroad. The important thing is that we are its owner and that it is active. This also allows us to receive tax refunds from Denmark to a foreign account.

It is important to note that as of September 1, 2020, an additional safeguard has been introduced – two witnesses must confirm the identity of the applicant on the form. You will need their personal information, address, identification number and signature on the application. This safeguard is designed to eliminate the submission of false applications by unauthorized persons.

In the form, you will need to provide the IBAN number, which is the account number with the prefix (or the code of another country where you have an account). You can find your bank’s BIC/SWIFT code online. CPR – Danish social security number.

To ensure the form is valid, you need:

  • notarized signature OR personal information and signatures of two witnesses,
  • a copy of an identity document – this can be a driver’s license, passport or ID card.

The office will automatically check whether the account number provided is correct. Once the form is sent to the address indicated, you will receive an activation code.

Activation of NemKonto
Submit the completed form along with a photo of a valid ID card:

  • Online via the form at: support.nemkonto.dk

or

  • Send the printed document by mail to: NemKonto Support, Dahlerups Pakhus, Langelinie Allé 17, 2100 Copenhagen Ø, Denmark.

NemKonto registration by letter
Registration by letter is the only way to have a NemKonto with a foreign bank. First you need to download, print and fill out the appropriate form.

How do I notify the authorities about my NemKonto?

  • Contact your bank and inform them which account to designate as your NemKonto.
  • Visit www.nemkonto.dk and assign an account number yourself. This option is available if you have a NemID or a digital signature.
  • Change your NemKonto through your online banking system – 90% of Danish banks offer this service.