Start-up Denmark Visa Scheme

Back to Atlas

The Start-up Denmark visa scheme is an initiative by the Danish Government that grants residency to talented non-EU, non-EEA, and non-Swiss entrepreneurs in order to establish and grow high-impact startups or branches in Denmark.
What are the main aims and objectives?
The program focuses on fostering innovation by bringing in fresh ideas and expertise from outside the EU/EEA region. By doing so, it aims to contribute to the Danish economy, create job opportunities, and strengthen Denmark's position as an international hub for innovative businesses. Additionally, the scheme seeks to establish specific Danish business interests and promote active participation of foreign entrepreneurs in running their businesses in Denmark.
How does the program work?

Under the scheme, an entrepreneur can be granted a residence and work permit in order to operate an independent company in Denmark. To qualify, they must have an innovative business idea which can contribute to growth and new employment in Denmark. To apply, individuals or teams must submit a business plan, which will be evaluated by an independent panel. If approved, applicants can obtain a residence and work permit for a maximum of two years with the possibility of extension for three years at a time. A maximum of 50 permits were initially available each year, this has since been increased to 75. 

Start-up Denmark is aimed specifically at self-employed persons from outside the EU, EEA and Switzerland. Up to three eligible citizens can submit a business plan as a team. The business plan of each team is assessed by an expert panel composed of volunteer business consultants from public regional business development centres. If the business plan is approved by the panel, the applicants then must apply individually for a residence and work permit from the immigration authorities. It is also possible for non-EU/EEA citizens to submit a business plan that includes EU/EEA citizens as part of their team (even though the EU/EEA citizens are unaffected by migration rules).  

Applicants must also provide documentation that they have sufficient funds to cover their first year in Denmark. Applicants who intend to bring their families with them must also provide evidence that they can support them too. Currently the levels are: 

  • 143,328 DKK (approx $21,000) for applicants without any family 

  • 286,656 DKK (approx $42,000) for applicants applying with a spouse 

  • 333,816 DKK (approx $49,000) for applicants applying with a spouse and one or more children 

  • 190,488 DKK  (approx $28,000) for applicants applying with one or more children but no spouse 

What is the overall cost?
The Danish government does not publish the exact cost of running the Start-up Visa Program. However, there are no major costs associated with visa schemes outside of the administrative costs of processing applications, conducting background checks and maintaining the program’s infrastructure. Indeed, it is highly likely that any costs that do exist will be outweighed by the economic benefits associated with the program. Furthermore, applicants must pay a fee of Applicants must pay a fee of DKK 1,890 (approximately $277) for their application. This fee might help offset some of the administrative costs associated with processing and evaluating applications. 
How was it implemented?

The policy was designed and is implemented in collaboration between the Danish Business Authority (under the Ministry of Business and Growth) and the Danish Agency for International Recruitment and Integration (under the Ministry of Immigration, Integration and Housing). 

Rooted in immigration law, the legislative framework behind the scheme went into force on 1 January 2015, where it was opened for applicants. Start-up Denmark was initially designed to run for an experimental period of 3 years, i.e. until and including 2017, after which it was evaluated and extended with an increased cap of 75 permits per year. 

What impact has been measured?

As of April 2016, +300 entrepreneurs have applied, +70 of which were approved by the panel, and +20 had received a work and residence permit.  

It was indicated that the impact of the program would be measured based on the number and quality – indicated by revenue growth and job creation – of approved startups which have set up in Denmark via the scheme. However, no information is currently available on the outcome of this assessment and the impact the program has had more widely.  

What lessons can be learned?

The Start-up Denmark Visa Scheme has been praised for its quick application process which typically takes 10 weeks in total. Assessments of the business plans takes 6 weeks with approved applications then taking a further 4 weeks to process by the Danish Agency for International Recruitment Integration.  

It is worth noting that compared to other startup visa schemes around the world, this program has a much lower cap of 75 compared to 1000 in Canada, 8000 in Australia and uncapped in countries such as Finland, France and Ireland.  

CURATED BY