Denmark is a country where everyone tries to live a decent and convenient life with less struggles. Any foreigner arriving in the country will quickly pick the cue and try as much as possible to own the nice stuff that makes life enjoyable. Key among the important things to own in Denmark as a foreigner is a car. Having a car in Denmark will ease your movement and make you less dependent on public transport. In case you have a driver’s license from abroad, it is possible to swap it for a Danish one after which no further restrictions will be put on you. All you need to do is keep the traffic rules in Denmark. But even as so many would go for car ownership in Denmark, it doesn’t come cheaply. You may pay through the nose just to keep your high end car on the road.

Buying and owning a car in Denmark is a given whether you are a native or a foreigner on the verge of moving. Car ownership in Denmark can be expensive and frustrating if you are not adequately prepared. Thus it won’t hurt to ensure your budget covers the car plus any other costs you might have. The first realistic step would be to determine what it will cost you to buy and maintain it. Factors that will influence these costs include;

The type of vehicle you are planning to buy

The model
How frequently you are planning to use the car
Whether you are buying a new or used car

Denmark is known for its high costs when it comes to owning a car compared to other European countries. This stems from the fact that it has registration costs that go as high as 150% of the car’s market value.

Costs Involved in Owning a Car in Denmark

The Danish Motorist Association asserts that one is likely to spend up to 2.65 DKK/km (smaller cars) to 4.88 DKK/km (larger cars) to own a new car in Denmark. Similarly, purchasing a small car costs around 100,000 DKK. A larger car would cost 350,000 DKK in Denmark.

However, these costs would vary if one were to purchase an electric car. Owning a small electric car is likely to cost 3.58 DKK/km while a hybrid is 3.78 DKK/ km. Nevertheless, the truth is owning a car anywhere is not only time consuming but also involves many recurring expenses.

Registering a Car in Denmark

In Denmark, all vehicles must be registered at a vehicle registration office within 28 days after purchasing. A payment fee of 340 DKK is required during registration. However, when you register via a number plate provider, you will pay an extra 40 DKK. Number plate providers also add an additional processing fee.

You are also required to provide your insurance information, owner details and the car’s registration number. The office then issues a registration certificate within 14 days or less. The certificate costs 100 DKK. However, pay attention when registering your car. In a situation where you provided false information, you will be required to pay the registration fees again.

Annual green tax or “gron afgift”

Gron afgift is made by all car owners in Denmark depending on the fuel one uses and the mileage. The payment is distributed equally in instalments for six months. People who drive petrol cars pay an annual green tax of between 620 DKK and 21,660 DKK. Similarly diesel car owners pay an annual green tax of between 240 DKK to 32,040 DKK.

Car Inspection costs in Denmark

The Danish Transit Authority is charged with the duty of inspecting vehicles in Denmark. With the help of Bilsyn, they inspect vehicles regularly to ensure that they are functional and roadworthy. Similarly, Danish policy requires new vehicle owners to have their cars inspected from years after they purchase them. Used car owners on the other hand, are expected to do the same every two years. It will cost you roughly 750 DKK to have your vehicle inspected every time.

Parking Fees in Denmark

Having access to a parking space is a crucial element of owning a car. In Denmark, parking fees will depend on the location, jurisdiction and how long you park your car. For instance, it will cost you slightly higher to park your car in a big city than a small one.

In a major city such as Copenhagen, car owners pay 38 DKK every 15 hours during weekdays and 38 DKK on weekends. Likewise, you need around 320 DKK to park your car at an airport for a full day. Other cities have slightly more favorable parking fees. For example, in Aalborg drivers are allowed to pay annual fees. It would cost you approximately 1,000 DKK to park at the city center.

Car Insurance in Denmark

Another important cost attached to owning a car in Denmark is insurance fees. The good news is, in Denmark you can choose the insurance that best meets your needs and budget. However, most of these insurance covers and companies charge from 7,000 DKK to 10,000 DKK yearly.

Fuel Costs

Fuel prices in Denmark vary depending on several factors. Currently, a gallon of gasoline goes for 61.57 DKK, while a liter costs Gasoline currently costs 16.625 DKK.

Car Registration tax

Aside from the Value Added Tax of 25% (car’s original value), you will also be required to pay a registration tax. Denmark uses this tax to reduce the number of cars on the roads.

Periodic tax

The periodic tax is collected from all vehicles that possess Danish number plates.

Weight tax

In Denmark, every vehicle be it a van or passenger car that was registered on or before 1st July 1997 is required to pay a weight tax. The amount paid varies depending on the type of vehicle and its weight.

Green property tax

All passenger cars apart from buses in Denmark are expected to pay the green property tax every half year. However, the amount paid varies depending on the distance traveled per liter of fuel.