Relocation costs - how much should paid by firm?

I have an offer from a large firm in copenhagen [at] 70kDKK per month after tax. It’s a senior role. This seems on the face of it a good offer, however I am concerned over the amount I’d need to spend to move my family Denmark from London.

Is it usual for a large Danish firm to offer help for the first month in the form of temporary accommodation?
I’ve not been offered this, just relocation assistance e.g a firm finding a house etc +  a lump sum of 50kDKK paid a month after I’ve been there.

This barely covers the Removal costs!

I am concerned the upfront costs of renting a place for a family look on to be enormous, - 70-90k DKK upfront for a 3 bed in decent part of town. 

Is this typical offer of am I being squeezed?

Thanks

Hi,

It must be understood that legally nothing obliges a European company to take over the relocation of a new employee, nor to take care of the rest. The premium that is provided to you is just a commercial gesture of the company.

The cost of living and housing is high in Denmark, that's why salaries are high ... But the state offers many counterparts.

So it's up to you now. Either you negotiate an extra gift from your future employer, or you do like everyone else by fending for yourself before bringing your family.

Let's start with the pay. 70 K gross is quite a lot, in general also for a senior role. However, it puzzles me that you write that it is a net pay? Normally (always) a pay is stated as a gross pay as taxation depends on many individual things, including the tax payer's commuting expenses, where he settles, whether he is married and in that case, if his spouse works or not, other income/expenses such as  interest rates  ..........

An income of 70 K gross a month will qualify for a special taxation. However, individual circumstances will decide whether the normal taxation scheme or this one will be most profitable.
https://skat.dk/skat.aspx?oid=2244911

Expect the deposit to be three months' rentals.

All income, also relocation expenses and temporary housing is taxable.

Neither do I understand from where you have got the idea that a flat is so costly 70-90k DKK upfront for a 3 bed in decent part of town.

https://www.balder.dk/leje-lejligheder?area[]=5&rent[min]=8900&rent[max]=27500&size[min]=36&size[max]=151&rooms[min]=1&rooms[max]=5&sort_by=changed&field_antalrum--max=5&field_antalrum--min=2&field_city=cph&field_hyra--max=25900&field_hyra--min=11000&gclid=Cj0KCQjwoqDtBRD-ARIsAL4pviAPdRLxwaHWr1UdllG60BfrcdJGlkdcb28C2a-bE4z7shwnE_jJ7bIaApbcEALw_wcB&type=apartment

I shalln't say whether it is the normal to offer a temporary housing to expats, but on the other side, it's not unnormal to do so.

It is costly to move, especially from one country to another. 50,000 kroner will be a contribution, but probably not cover your expenses.

I've just heard from another expat (single) that his removal goods (a relatively few things as the flat was rented furnished, but some books, amounted to 63 boxes which were estimated to weigh one ton). Big surprise! I would ask a removal company for an estimate to get an idea of your expenses.

The pay is absolutely second to none, no doubt about that, but  - I may be wrong - I would find it reasonable if the offer included a temporary housing for the first month,  the actual costs of relocation were covered as well as you and your family's travel expenses. Do negotiate a little more.

Good luck (and please share your experience with this forum),
Nellie

When I did it, I was offered a fixed sum, plus extra actual costs for redecorating and carpets/curtains.  It became a part of my decision-making process as to whether I would accept the job - I did.  Just remember, it's taxable.

Thanks,  very helpful comments.  Yes the ~70k is net after 48e taxation. No complaining about the salary, it’s a good offer. 

My concern is I’m going to be using about £10k of my own money to move, and seems a bit one sided and risky for me.  Tried negotiating and they won’t budge!

Indeed, there are some pros and cons to consider if so.

Maybe, the fringes depend on more what industry we're talking about than on the company . The offer do is a good one, and as Cynic find it quite common only to get a fixed relocation sum, you can exclude that the company is trying to squeeze you.

/Nellie

Turdis :

Thanks,  very helpful comments.  Yes the ~70k is net after 48e taxation. No complaining about the salary, it’s a good offer. 

My concern is I’m going to be using about £10k of my own money to move, and seems a bit one sided and risky for me.  Tried negotiating and they won’t budge!

Hi again.

You could look at it as a £10k investment in you and your families future.  At the end of the day, only you will know how much of a risk that is.

If they won't negotiate and you consider the risk is too high, then perhaps you need to look elsewhere.

Just my opinion.

Cynic
Expat Team

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