Denmark

Investing

FDI in figures

The total stock of foreign direct investment in Denmark increased by 79% from 1998 to 2003 (in DKK, exclusive pass-through investments, current prices) and corresponded to approximately 25% of GDP in 2003.

Foreign Direct Investment	2004	2005	2006
FDI of inward flow (millions USD)	-10,442	13,103	7,032
FDI inward stock (millions USD)	n.c.	n.c.	138,410.0
Performance Index*, world ranking	141	123	112
Potential Index**, world ranking	20	19	n.c.
Number of Greenfield investments	92	79	65
FDI inwards (in % of GFCF)	-21.5	24.5	11.5
FDI stock (in % of GDP)	n.c.	n.c.	50.3

Source: UNCTAD, World Investment Report

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.

Why you should choose Denmark

Strong points: - A natural gateway to the Scandinavian countries and the Baltic area - Copenhagen Airport is the main hub in Northern Europe and Europe's most efficient airport; a high-quality motorway network means swift and easy access to all markets in the Northern European region
- One of the world's top 3 flexible labor markets
- One of the most advanced telecommunication infrastructures in Europe with world leading use of PC, Internet and Broadband
- A company tax rate of 25% and expatriates can benefit from a special tax regime
- A well-educated population with a high proportion of university graduates and excellent language skills
Government measures to motivate or restrict FDI: No direct aids from the Danish government. But, Danes think the best measure to motivate FDI is to guarantee good infrastructures, easy entry procedures and qualified labor force.
Bilateral investment conventions signed by Denmark: As of December 2004, Denmark has concluded investment protection agreements with the following 41 countries: Albania, Argentina, Bolivia, Bulgaria, Czech Republic, Chile, China, Croatia, Egypt, Estonia, Ghana, Hong Kong, Hungary, India, Indonesia, Latvia, Lithuania, Malaysia, Mexico, Mongolia, Mozambique, Nicaragua, North Korea, Pakistan, Peru, the Philippines, Poland, Romania, Russia, Slovakia, Slovenia, South Korea, Sri Lanka, South Africa, Tanzania, Tunisia, Turkey, Ukraine, Venezuela, Vietnam, and Zimbabwe.

Administrative procedures relative to foreign investment

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