Öresund connects 15 million people from two countries and the Öresundregion constitutes 3 million of those people. Many companies consider establishing cross border activities but are concerned about risks of doing so and may miss out on good business opportunities.
Both Denmark and Sweden have average GDP per capita of approx. EUR 63 thousand, but GDP per capita of the Copenhagen area is EUR 79 thousand, which is approximately 50% higher than the Skåneregion with EUR 52 thousand.
The Öresundregion has three million inhabitants, including 1,7 million in the Greater Copenhagen area and 1,3 million in the Skåneregion. The Danish krone is pegged to the euro as a result of a policy since 1982 when the Danish currency became pegged to the Deutschmark, due to Germany being Denmark's largest trading partner. Therefore, there are no fluctuations to the euro for Danish companies.
The Swedish krona has floated freely since 1992. In the last 20 years, the Swedish krona has fluctuated against the Danish krone in the range of 1,09 -1,56 SEK/DKK. During 2015 to mid 2016, the rate has been average 1,25 SEK/DKK.
When establishing business in Denmark or Sweden, there are important national differences to note as well as questions to consider. Also, there are issues that might not be widely known, but highly important to be aware of. It is KPMG's experience that proper planning and analysis mean a lot to create value. We can advise in areas where we see that common mistakes are made. E.g. our experience tells us that it is important to enter into beneficial rental and employee contracts, such as these types of agreements usually are costly and can be difficult to change after they have been signed.
KPMG has established an efficient collaboration between offices in Copenhagen and Skånereigonin order to offer the best possible service to companies with activity or ambition on both sides of Öresund.
Our group has more than 15 years of experience in facilitating the establishment of companies on both sides. KPMG offers advisory services across all our competencies, and our staff has good cross border understanding, which eases the step towards an establishment on the other side of Öresund.
Despite of many similarities some key factors differ, for instance in Denmark an advantage is the low employer social security contribution and in Sweden an advantage is the low energy taxes.
All figures are based on the latest public information, which might not be updated on an annual basis. The Danish krone is fixed to the euro at a rate of 7,45 DKK/EUR. The SEK//EUR exchange rate used is 9,02 SEK/EUR and is the average of the past five years. Figures that are affected by the fluctuation of exchange rates should therefore only be seen as indicative.
Note: (1) Source: NewsecEgeskov& Lindquist A/S
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