41 concrete initiatives to transform Denmark into a world-class entrepreneurial country: The government announced a package of measures aimed at boosting the start-up world by infusing 2 billion DKK of value over the next three years. The measures will be negotiated with the parliamentary parties before they become reality. What to expect?
- Removal of the tax on company dividends from unlisted portfolio shares. Increase the amount of dividends taxed at 27% (from 64,000 to 80,000 DKK). Increase the deduction (fradrag) on company losses from 9.5 million DKK to 20 million DKK. Legalize equity crowdfunding for limited companies.
- Reduction of starting capital for ApS (limited companies) from 40,000 to 20,000 DKK. Simplify regulations and automate data reporting from companies. Companies will obtain the right to a business bank account.
- Unemployed people who want to start a business will be able to receive unemployment insurance (a-kasse) for a longer period while running their own business. Allow entrepreneurs on maternity leave (barsel) to still work up to 3.5 hours per week on their companies. Finance stronger entrepreneurship education in schools to encourage more young people to choose this lifestyle. Create start-up environments in all educational institutions, from vocational to universities.
- Fast-track support to register a patent or design. More money allocated to support companies to afford patent/design registration.
- Support for sports tech start-ups via the establishment of a dedicated incubator. There will be an “entrepreneur’s guide” at the regional business houses (erhvervhusene) to support new start-ups.
- More money to support international entrepreneurs in Denmark.
Good news for people with variable loans – the interest rates are going down: After the European Central Bank and Denmark’s National Bank announced an interest rate cut of 0.25%, the larger banks in Denmark (Nordea, Danske Bank, Nykredit) have already followed suit.
- The European Central Bank reduced interest rates from 4% to 3.75%, while Denmark’s National Bank reduced interest rates from 3.6% to 3.35%.
- The interest rates are expected to be reduced two or three more times this year.
- As long as the inflation rate stays at 2% maximum, the interest rates should continue to drop.
