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Cross-border
economic
development
39
Territory portraits: economic development on different borders
Denmark -Germany
Comparison of framework
conditions
Framework conditions do not differ significantly between Germany and
Denmark. Corporation tax amounts to 25% in Denmark compared with
15% in Germany, but the tax on industrial and commercial activities
(
Gewerbesteuer
) also of around 15% must be added to this, which
rebalances tax burden levels for businesses. However, hourly labour
costs are nearly twice as high on the Danish side, where wages are
generally around 20% higher (or even more depending on the sector).
On the other hand, labour legislation is more flexible.
With respect to the price of property, this is higher in Denmark because
there is less land available for building. The German towns situated near
to the border, such as Flensburg, have therefore proved particularly
advantageous as locations for businesses wishing to develop their
activities across both markets. Moreover, many Danish firms choose
to locate on the German side in order to be closer to the Hamburg
conurbation.
As regards the general context for doing business, investors tend to
consider the German system too bureaucratic, with many procedures
having to be validated by regulatory acts with the involvement of a
notary. Denmark is much less demanding in this respect, which makes
transactions easier.
Portrait of a territory
GERMANY
DENMARK
North Sea
Baltic Sea
SWEDEN
Flensburg
Padborg
Copenhagen
Hamburg
SCHLESWIG-
HOLSTEIN
Region Sønderjylland
-Schleswig
SYDDANMARK
Fyns Amt /
K.E.R.N.
Kiel
INTERREG Germany -
Denmark
SJÆLLAND
HOVED-
STADEN
Fehmarnbelt Region
50 km