Thursday, May 21, 2009

Sticker Shock

We went to Copenhagen this past Sunday afternoon. Early Monday morning we had to go to the Office of Immigration Services to get our visas. Copenhagen is about a 3 hour drive straight east of Varde, crossing two very long bridges on the way -- and paying a $40 toll. I had to ask what the speed limit signs meant that said 110km/hour with a line through them -- thought maybe it meant "No Speed Limit" but found it actually means 130km/hour (about 80MPH.)

As far as I can tell, the order of events that we should be following to get officially settled with the state of Denmark is this:
  • File applications for visas. We did this well over a month ago. Just like in England, the wife gets hers via her position with an established company and I get one just because I can produce a marriage certificate. Easy living.
  • Get a letter via the post that says your visa was approved. This letter is oddly important but I don't know what it says (all in Danish) -- right now, I have my visa but didn't get the letter yet and this is holding up some other steps.
  • Next, go to Immigration Services and get the actual visa added to your passport -- another big sticker. Once again, mine explains how I am a deadbeat without a job and should be kicked out of the country if for any reason my wife says so. Or something like that -- who knows? It's all in Danish.
  • Next, get our CPR numbers by going to your local Citizen Services branch. This is about the same as a Social Security Number in the USA. You can't get this without your visa-approval letter. The wife was able to apply for hers but I am now in limbo. We also had to sign-up to learn Danish -- this is a brand-new requirement. Apparently the country has been having some immigration issues and this is a step to make folks a bit more committed to living in Denmark and following the rules.
  • Once you have your CPR number, you have to register at the local tax office. This is where things get hazy and confusing, and not because pot is somewhat tolerated here. The wife will very likely qualify for a tax scheme that limits her liability to 25% of income. For me, though, I might not make the cut and could be facing the much higher tax rates that most residents get. The bonus, then, is I can deduct any interest paid in a year -- this adds up and can make buying a home about 20% cheaper. But these are still theories on my part.
  • Once all this is done, we can take our CPR numbers and head to the bank and open accounts. We can also then get the Danish bank cards that are the only type of card that every business here accepts -- many won't take non-Danish credit cards. Almost everywhere here charges you a 3% fee for using a credit card.
  • Once we have bank accounts in hand and put some money in them, we can go buy that house we've always wanted and maybe even lease or buy a car -- but with a 180% tax (no, that's not a typo) included in the price of any car sold here, I don't think we will be getting that Aston Martin the wife keeps talking about! Comparing the 2009 Ford Focus base prices from the Ford USA website and the Ford Denmark websites, the USA price rolls in at about $16000, while the DK price shocks at 250,000 DKK -- around $45,000. Ugh!
Skål!

4 comments:

  1. Hope it all worked out for you, unlike in the UK.

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  2. 180%? You've got to be kidding. Is that just for the foreigners?

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  3. No -- that tax is for EVERYONE. Even if you bring a car into the country, they make you pay that tax on the Danish value of the car. Even worse, that 180% is applied AFTER a 25% VAT tax. Seriously, I think the politicians here are in bed with the folks that make Vaseline. BOHICA!

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  4. So, I take it a $90,000 Volvo V50 isn't on your list. I can't decide whether that's crazier than the $20,000 per year tax the Britishers levy on cars like the LS430.

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