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There are advantages and also potential challenges for Northern Ireland companies doing business in Denmark.

Denmark is one of the EU’s best-performing economies and very open to international trade. It has low inflation, a healthy economic growth rate and low unemployment.

Advantages of exporting to Denmark

Denmark offers numerous benefits to companies looking to do business in the region including:

• dual market access allows businesses in Northern Ireland to trade goods freely with Denmark as it is part of the European Union. Read more about how to take advantage of dual market access.
• prosperous economy
• gateway to the Scandinavian and Baltic countries
• close to growing economies of Germany, Sweden and Poland
• English widely spoken
• easy access to northern Europe markets via Copenhagen hub airport and high quality motorway network
• well educated population with a high proportion of university graduates
• advanced telecommunication infrastructure
• takes only 24 hours to establish a company online

Challenges of exporting to Denmark

Doing business in Denmark is very similar to doing business in the UK. If your product or service is successful in the UK, there’s a good chance you’ll be successful in Denmark.

Denmark is a member of the European Union (EU) so there are no significant trade barriers in exporting to Denmark.

The European Union (EU) is an economic and political union of 27 countries. 

Dual market access allows businesses in Northern Ireland to trade goods freely with Denmark as it is part of the European Union.

What is dual market access?

Dual market access allows businesses in Northern Ireland to trade goods freely with both Great Britain and the European Union.

This means goods can move from Northern Ireland to Great Britain and the EU without customs checks or tariffs, offering businesses a competitive advantage in both markets.

What are the benefits of dual market access when exporting to Denmark?

With dual market access, your manufacturing business based in Northern Ireland can: 

• Expand your customer base: Sell goods seamlessly to both GB and EU markets.
• Avoid trade barriers: no customs declarations or tariffs when trading with the EU.
• Enhance your competitiveness: access to two major markets provides a unique edge over businesses operating in only one.
• Reduce compliance costs: Northern Ireland maintains regulatory alignment on goods with EU regulations and there are no additional approvals required to place qualifying goods on the on the market in GB.
• Simplify your supply chains: businesses in Northern Ireland can act as a gateway between the UK and EU, leveraging their unique position to enhance logistics and distribution networks.  

Dual market access presents opportunities for businesses meaning that Northern Ireland-based companies can strengthen relationships with both UK and EU customers while maintaining supply chain efficiency. 

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Opportunities exist for UK companies across a wide range of sectors, including Infrastructure and engineering, Cleantech and energy, Healthcare, Physical security and cyber security, Technilogy and Maritime.

There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.

Infrastructure and engineering

Though the Danish infrastructure sector is established and mature, significant investment is still being made in its development, particularly in mainline and urban rail.

Reliable infrastructure

Denmark offers the most reliable electric grid in Europe, as well as clean water and well-maintained road and rail systems. The highly developed Danish telecommunications network means broadband internet access is available almost everywhere. Opportunities for UK exporters exist for safety and traffic management consultancies offering audit, consultancy and training services; railway systems integrators; and innovative high-tech utilities companies.

Expanding national network

Denmark’s location makes it an excellent transport hub for both Northern Europe, Scandinavia and the Baltic Sea. Enhancements to national networks range from electrification projects and schemes to add capacity, to plans to build very high-speed train lines. The building of the Femernbelt Fixed Link, a subsea road and rail link between Denmark and Germany, is well underway. The project is expected to be completed by 2029. There are also opportunities in airport expansions, such as new retail outlets, airport security and baggage handling systems and construction services.

Transparent tendering processes

The Danish procurement process is transparent and ensures equal opportunities for all bidders.

Cleantech and energy

Denmark’s Climate Act of 2019 is driving demand for solutions which can decarbonise its society and economy. The act commits the country to reduce its greenhouse gas emissions by 70% by 2030. Renewable energy is set to cover Denmark’s total electricity needs and 50% of total energy needs by 2030.

Expanding offshore wind

Denmark is a wind power pioneer. It plans to add at least 3GW of new offshore capacity by 2030, which offers great opportunities for UK companies within design, development and construction. With more renewable energy added to the energy mix, storage and grid stabilising solutions and technologies are currently being tested and deployed.

Electrification of society

Electrification and digitisation is gaining momentum in Denmark, across all industries in both public and private sectors. The goal is to create greener and smarter living. There is a growing demand for tested and safe solutions – from electrification of heat networks, to individual transport, and smart devices and systems. The ecosystem for testing and maturing innovative solutions is very advanced.

Decarbonisation beyond the energy sector

Opportunities for UK companies also exist in agriculture, heavy transport and other industries. Solutions and innovative technologies to drive both efficiency improvements and fundamental transformations will be needed. Important areas include alternative fuels, recovery of surplus heat and carbon capture.

Healthcare

Denmark is investing in its health sector infrastructure. It is also a major procurement centre for The United Nation’s health projects.

Demand for UK expertise

The Danish market for healthcare services and products is very open to UK suppliers. Opportunities for UK businesses include healthcare technologies, medical devices, hospital equipment, training in healthcare best practice and healthy ageing services and products.

Export opportunities to UN agencies

Copenhagen is now the second most important procurement centre outside Geneva for the UN. Major international agencies include the World Health Organization (WHO) and United Nations Development Programme (UNDP). The main areas of procurement are medicine, emergency equipment, medical devices, water and sanitation.

Physical security and cyber security

The Kingdom of Denmark, which includes Greenland and the Faroe Islands, has small domestic physical security and cyber security sectors and looks to its allies for solutions in these industries.

Interest in UK expertise

The UK’s large physical and cyber security sectors produce world-class solutions which are of interest to Danish buyers. The internal market in these sectors is smaller in Denmark, so it looks to strong NATO and UN allies, like the UK, to share their expertise and capabilities with them.

Growing investment in security

Denmark has prioritised investment into both physical and cyber security across its public sector and critical national infrastructure. Investments into large infrastructure projects and local and city-level developments present multiple opportunities for British physical security and cyber security solutions.

Close allies and friends

The UK and Denmark have a strong history of security cooperation, shared values, and similar cultures. Danish investment into Greenland and the wider Arctic region is increasing which will call for both physical and cyber security solutions, many of which the UK could provide.

Technology

Denmark's innovation culture, great connectivity and leading position in global digitisation (Digital Economy and Society Index, 2021) make it a receptive market for the UK's technological products and services.

Agile regulation

The Danish government’s Digital Growth Strategy (2018) shows the country is eager to promote agile regulation in the tech sector, 91Ï㽶»ÆÉ«ÊÓƵing Denmark as a digital frontrunner. The strategy puts forward innovative solutions such as new business models and easy access to public data.

Fintech and UK expertise

Fintech companies are the fastest growing start-ups in the Nordics. In full 91Ï㽶»ÆÉ«ÊÓƵ of this, Denmark is focussing on its ambition to attract companies to its flourishing fintech community. With London recognised as Europe’s tech capital, Danes are keen to use British expertise and help companies from all over the UK to adapt to the Danish business environment.

Industry 4.0 and smart cities

Copenhagen aims to become carbon-neutral capital by 2025. It has the largest smart city lab in Europe, and is inspired by UK smart city solutions. Denmark is focused on smart manufacturing and advanced robotics, and is open to collaboration with UK suppliers within areas such as AI, machine learning, big data analytics and IoT (Internet of Things).

Maritime

Denmark is a maritime hub with a concentration of ship owners and operators. It also hosts a vibrant maritime services and supply chain industry.

Strong shipping industry

Denmark is the world’s 5th biggest shipping nation, measured in operated tonnage (IHS Sea-web, 2020), and hosts one of the worlds’ biggest shipping companies, A.P. Møller-Maersk. This has helped create the basis for a strong maritime industry, offering great opportunities for UK maritime industries and service providers.

Demand for professional services

The UK is a world leader in financial and legal services to the maritime market. Denmark is an obvious market for these service providers to target, given the size of the maritime industry, the proximity and the close ties between the 2 nations.

There are a lot of things to consider before you start exporting to Denmark. It's essential to find out about local rules and regulations on tax and duty in your intended market.

VAT

VAT is charged at 25% on all products and services.
You can get more information on taxation in Denmark from the Danish tax authority (SKAT) and on import duties from The Danish Customs Agency (Toldstyrelsen).

Standards and regulations

Products and packaging should meet EU standards.

The Danish Standards Agency is responsible for standards.

Services regulations

Information on rules for selling services and business travel to Denmark is available on gov.uk.Packaging and labelling

Routes to market

The traditional routes to market for Denmark are direct exports, finding a distributor or wholesaler, or starting a joint venture.

Starting a business

Once you have a foothold in the market, you may consider establishing a Danish subsidiary. Registering a business in Denmark is quick and only takes 24 hours. The provides valuable information on starting a business.

Intellectual property

Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office provides practical information to help you abroad. Further 91Ï㽶»ÆÉ«ÊÓƵ for businesses in Northern Ireland can be found through a network of , based in key UK export markets.

Payment terms

Payment is typically made after 30 days or the current month plus 30 days. Invoices are paid on time.

Check for trade barriers

Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.

Check duties and customs

Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.

Developing exports to Denmark could be a part of growing your business. But breaking into the market can be challenging. The right 91Ï㽶»ÆÉ«ÊÓƵ and advice can significantly improve your prospects.

Invest NI offers a range of advice, plus additional 91Ï㽶»ÆÉ«ÊÓƵ services for businesses trading with Denmark.

• – get 91Ï㽶»ÆÉ«ÊÓƵ with market research and market visits.
• - join trade missions and exhibitions to access new opportunities, strengthen relationships, and accelerate your business’s global growth.
• – access export and capability solutions to get the knowledge and skills to structure and build on your export activity.
• - assesses your business's readiness for exporting and get a tailored report sent to you, detailing your journey, next steps, practical tips, templates, and 91Ï㽶»ÆÉ«ÊÓƵ available.
• Invest NI offers advice and 91Ï㽶»ÆÉ«ÊÓƵ to help businesses .
• Invest NI can advise on how to use to 91Ï㽶»ÆÉ«ÊÓƵ your exports
• Invest NI can advise on and may be able to provide financial 91Ï㽶»ÆÉ«ÊÓƵ directly to businesses.

As well as Invest NI, there are other sources of 91Ï㽶»ÆÉ«ÊÓƵ to assist with trading with Denmark.

• The Northern Ireland Chamber of Commerce (NICC) provides members with a to learn, up-skill and connect as they grow locally and internationally.
• Department for Business and Trade (DBT) in-market 91Ï㽶»ÆÉ«ÊÓƵ - eligible UK businesses can on exporting to specific countries from the DBT global network of international market hubs.
• A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
• Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.