International money transfers cost Danes millions in hidden fees each year. A typical bank transfer from abroad can lose 5% to exchange rates and charges. Savvy residents now bypass traditional banks for better options.
Understanding Transfer Costs
Three elements determine your total cost. The exchange rate margin adds 2-4% above the mid-market rate. Transfer fees range from zero to 50 euros. Some providers charge receiving fees in Denmark. Wise (formerly TransferWise) shows all costs upfront. Their transparent pricing model sparked industry changes. Revolut offers free transfers within monthly limits. Traditional banks like Danske Bank still hide costs in poor rates.
Top Transfer Services Compared
Wise works best for regular transfers to Danish kroner. They use the real exchange rate with a 0.5% fee. A 1000 euro transfer costs about 5 euros. Money arrives in 1-2 business days. Revolut suits those who already use their banking app. Standard accounts offer free transfers up to 1000 euros monthly. Premium accounts (7.99 euros monthly) remove limits. XE provides good rates for large transfers over 10,000 euros. Their fee structure favors substantial amounts. All three services beat typical bank rates by 2-3%.
Avoiding Common Pitfalls
Never transfer without checking the mid-market rate first. Use XE.com or Google for real-time rates. Compare the offered rate against this benchmark. Watch for weekend markups. Most services add 1% for transfers Friday through Sunday. Schedule transfers for Tuesday through Thursday mornings. Verify Danish account details twice. Include the regnummer (4-digit code) and kontonummer. Missing digits cause delays and return fees. Consider splitting large transfers. Send test amounts first when using new services.
Setting Up Your First Transfer
Create accounts with two providers minimum. Compare rates for each transfer. Documentation requirements vary. Most need photo ID and proof of address. European transfers require less verification than non-EU ones. Link your funding source carefully. Bank transfers work better than credit cards for large amounts. Card payments often carry extra fees. Set up beneficiary details in advance. Save Danish account information in your transfer profile. This speeds future transactions. Monitor transfer status through provider apps. Good services provide tracking like package delivery.
Frequently Asked Questions
What is the cheapest way to send money to Denmark?
Wise typically offers the lowest total cost. Their average fee is 0.5% with mid-market rates. For transfers under 1000 euros, Revolut's free tier works best. Always compare both for your specific amount.
How long do international transfers to Denmark take?
SEPA transfers from Europe arrive same-day or next business day. Transfers from outside Europe take 1-3 business days. Wise and Revolut usually complete transfers within 24 hours. Banks often take 3-5 days.
Are money transfer services safe for Denmark?
Licensed providers like Wise and Revolut operate under Danish Financial Supervisory Authority oversight. They keep client funds in segregated accounts. These accounts receive protection under EU regulations.
What information do I need to send money to Denmark?
You need the recipient's full name. Provide their Danish regnummer (4 digits) and kontonummer (10 digits). Include the bank name though not strictly necessary. For larger amounts, prepare your identification documents.
Can I send Danish kroner directly?
Most services let you send euros or dollars that convert to kroner. Some like Wise allow holding kroner in multi-currency accounts. Direct kroner transfers sometimes cost more than euro transfers that convert automatically.
What are the tax implications for receiving money in Denmark?
Gifts under 72,500 kroner annually from close family are tax-free. Larger amounts may be taxable. Business transfers require proper documentation. Consult Skat.dk for specific cases.
Do Danish banks charge for receiving international transfers?
Most Danish banks charge 50-100 kroner for incoming international transfers. Nordea charges 75 kroner. Danske Bank charges 50 kroner. Some online banks like Lunar offer free incoming transfers.