Comments on: To be, or not to be planting flags in Denmark

By: IT guy

IT guy — Wed, 15 Dec 2010 19:58:27 +0000

Here's a survey taken among expats in Denmark on this very topic. The impression one gets from the results (and from the comments) is rather depressing:

http://www.worktrotter.dk/blog...

By: Swin

Swin — Wed, 21 Jul 2010 00:22:44 +0000

I agree with simon's opnion about Saxo- I've used their service before… customer service definitely lacking (They took 2 weeks to return an email!) but a good trading platform.

By: JJ

JJ — Tue, 20 Jul 2010 19:14:17 +0000

Note that Saxo bank has been reported to the fraud squad and one of the directors have moved to switzerland where he tried to hide by reporting a fake adress to the danish authorities. This happened only a few weeks ago. I've met with him once, and he seems like a nice guy. But you never know.

By: David

David — Tue, 20 Jul 2010 15:16:33 +0000

Hi Simon,

can you recomend an apartment for two persons in Austria Wiena. Maybe you can recomend an agency. Price range per night should be moderate, around 0 – 100 € per night.

Thank you very much.

By: Mark

Mark — Tue, 20 Jul 2010 08:41:59 +0000

Jyske Bank (the 3rd largest in Denmark) does accept US clients through an SEC registered subsidiary called JGAM (Jyske Global Asset Management). Their staff is all salaried and does not receive commissions, which seems refreshing to me (not having to worry about self-interested advice). They seem to do quite well with foreign exchange trading and carry trade investments. I am in the process of establishing an account there now.

By: Arbinvestor

Arbinvestor — Tue, 20 Jul 2010 07:32:10 +0000

About a year ago i was working with some Danish colleagues when the issue about the integration of “immigrants” into Danish society came up. This was seen as a key challenge for Danish society and they all seemed quite concerned. When i started to try to understand the issue it quickly became clear that many of these “immigrants” had actually been living in Denmark for many years. When i asked the question “when does an immigrant become a Dane” they looked quite perplexed. “Oh no you don't understand” they said. “Immigrants can never be Danish no matter how long they stay”.

As i probed further it became clear at least that these Danes (notionally well educated and 'liberal') saw themselves as 'Race” much as the Germans do and connected via blood rather than place and culture. Anyway, the whole discussion left me feeling rather queasy and yearning for a more simple US style approach where a set of common ideals and values are used to forge a nation and identify.

So whereas Denmark might seem on the surface a pleasant enough place to live in reality you had better share some Danish ancestry or you will forever be tagged as an “immigrant”!

By: lf

lf — Tue, 20 Jul 2010 04:08:19 +0000

Saxo Bank website still shows that US citizens can apply for Forex account. As for other services, they were not available to US residents as long as I remember. Do you mean that US citizens who are not US residents cannot open full-service brokerage account?
That will be news, since just couple of years ago it was very easy to open full-service account for an American residing in Singapore with their Singapore branch…

By: Wille

Wille — Tue, 20 Jul 2010 02:38:42 +0000

I don't believe the holding corporation regime is valid for forex trading – I believe it is mostly for trading subsidiaries where the ownership is in excess of 10%.

As for Cristians comment on Holland: Holland has a slightly friendlier regime, as they allow for Dutch holding corporations to be owned by offshore entities from the Netherlands Antilles (I believe IKEA is held this way and ultimately owned by offshore trusts closely tied to founder Ingvar Kamprad).

By: AlexP1973

AlexP1973 — Tue, 20 Jul 2010 01:14:23 +0000

Cristian- they changed the law in 2004; what Simon is saying is current.

By: Zaph

Zaph — Mon, 19 Jul 2010 23:44:32 +0000

Hey Simon,

What are your thoughts on Poland and a Polish passport. I'm American, but, my Grandpa was Polish so I'm entitled to a Polish passport. And I've been studying there for the past 3 years.

Is it true that with a Polish passport, if I work in Poland as a Polish citizen I don't owe the IRS anything even if I'm also a U.S. citizen?

Also, do you know the difference between having dual-citizenship and having two citizenships because the Consulate told me that with the Polish passport I would have two citizenships NOT dual-citizenship. I'm thinking it's something like I could only be a citizen of one country at a time.

Lastly, do you see any negatives in being treated only as a Polish citizen while in Poland as they completely disregard any other passport?

THANKS

By: elaielaios

elaielaios — Mon, 19 Jul 2010 22:48:39 +0000

You keep on talking about belgium as the goto place in EU, please write a letter about the place!

By: Cristian

Cristian — Mon, 19 Jul 2010 22:43:24 +0000

A couple of observations. Children born in DK with one parent a DK citizen does not necessarily give the child DK citizenship options. My wife is Danish. Our first child was born in DK [1968]. Because I am US citizen, the DK authorities said there was no option, the child would be issued a US passport and that was that. Years later we looked into the possibility of his gaining a DK passport at age 18, or 21 or whatever age the Danish authorities marked. No go. Not an option unless he had lived in DK for 5 consective years during his first 18.
The VAT recovery you outline is being made more and more difficult. That is, another layer of paperwork has been added for “walk-outs.” A high priced item exported is easier, but often a 6 to 12 week wait for the refund [better than no refund].
Den Danske Bank will open an account for a US citizen still since they have North American banks and have long since complied with US demands. If you don't provide a SS number, then they withhold 25% of any interest earned, no recourse.
Comment #1 ref Danish holding company is quite correct. Holland is a touch better and easier to navigate.
Would love for you to show me where to find the 2 bedroom apartment in city center for 1000 euros! Seriously! Unless you mean that 4th floor apartment with no elevator and all of 45 meters square.
Good article and write-up. Thanks.

By: Don

Don — Mon, 19 Jul 2010 22:43:18 +0000

Wille gives part of the answer I missed in your article. We opened a saxo account to attempt to learn Forex trading and thus funded it minimally. We were told that Forex profits were not taxed to us in Denmark but we unfortunitly never needed to varify that!Subsequently we considered using the platform for stocks, etc. But we could never figure out how to ascertain the tax withholding on future profits (Willie suggests none as in USA or Canada if in a non treaty country) , nor the safety of Saxo Bank, nor the treatment of sercurity holding in the Saxo account if we get a double dip, etc. Partly my own laziness but does anyone know?

By: Wille

Wille — Mon, 19 Jul 2010 21:27:36 +0000

I would actually argue that planting a business flag in Denmark CAN be beneficial under very specific circumstances:
Denmark has one of the best Holding Corporation regimes in Europe (the other EU standout being Holland(!)) and access to a very wide range of double taxation treaties which can make use of this, with none of the "tax haven" stigma of many other countries.

For instance: for a EU citizen living in a high tax European country, holding shares in your other businesses through a Danish holding company can be useful, as qualifying dividends and share sales will not be liable to dividend tax, capital gains tax or corporation tax.
In other words, it could be a potentially useful vehicle for stock holdings for people living in European high tax countries who want to defer paying dividend- or capital gains tax indefinitely.

..that being said, administration costs and startup costs may be pricey, so the potential gains would have to be substantial, as well as ensuring that the double taxation treaty between Denmark and the country of your residence allows for taking advantage of these benefits.