Denmark

Kristen Yasso

Overall: 76.3 World Ranking: 11

Denmark facts compared to United States

Population: 5.6 million/ 316.4 million

GDP: $211.9 billion/ $16.8 trillion
GDP Growth %: 0.4%/ 1.9%

GDP Per Capital: $37,900/ $53,101
Unemployment: 7.1%/ 7.5%
Inflation: 0.8%/ 1.5%
Foreign Direct Investment: $2.1 billion/ $187.5 billion

Legal System of Denmark

Levels of corruption are low in Denmark. Protections of property rights are enforced strongly and an independent and fair judicial system is institutionalized throughout the economy. The tax is divided into state income tax and a local income tax. The state income tax is a progressive tax while the local income tax is a flat tax. All income from employment or self-employment is taxed at 8% before income tax.

Competitive Markets

Denmark's economy depends heavily on foreign trade. Increased immigration spurred by the 2011 uprisings in North Africa has caused the government to consider more restrictive immigration laws. Even though Denmark isn't part of the euro, they have felt the wrath of the European economic crisis. Denmark's economic growth has been sluggish, unemployment stays low.

Limits on Government Regulations

The politics of Denmark depend of the framework of a parliamentary, representative democracy. Denmark is a constitutional monarchy. Direct taxes in Denmark are about 8% on goods.

Efficient Capital Market

Denmark's overall regulatory environment remains one of the most transparent and efficient in the world. There are minimum capital requirements for limited liability's to companies has been reduced. Launching a new business involves 4 procedures. Flexible new employment regulations sustain in the labor markets. Monetary stability is established.

Monetary Stability

Stable prices and confidence in the currency gives you monetary stability. Stable prices are defined by the Government's inflation target, which the Bank seeks to meet through the decisions taken by the MPC (Monetary Policy Committee). This is basically the stability of the value of money.

Low Tax Rates

All income from employment or even self-employment is taxed at 8%. The state income tax has two income brackets, base and top. The highest local income tax in Denmark is 27.80 while the lowest being 22.70% as of 2009. Health care tax is also at 8%. The sum of all tax percentages cannot exceed 51.5%.

Free Trade

EU members generally have a 1.0% tariff rate. Although some non-tariff barriers do exist. The EU is usually open to external trade. Denmark is open to foreign investment. and usually treats foreign/domestic investors equally.

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