Relocation costs - how much should paid by firm?

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 wrote:

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

Thanks for the advice.   The firm won't negotiate on moving costs or paying any expenses and so it has become a numbers game. We like Copenhagen but won't skimp of standard of living or savings we can make in London. 

For us to move our house contents is £4.5K from London to Copenhagen.  This will almost be covered by the fixed allowance the firm has offered.

The rest of the moving costs will have to be paid for, we've worked this out at just under £2k for flights, moving pets (!), and other things.   We then meed to pay £10k (86000 DKK) upfront to move in, of which £2500 (21500DKK) is the 1st month's rent, the rest being deposit.

Total cost to move = £16.5K, 4.5K is paid = £12.5k upfront for us to foot= 105000DKK!

We shall be passing up the opportunity, its a pity, but not going to take this much financial risk.  The offer is good, but its the same as I'm on in London, so we have an equal footing from which to evaluate the deal.

I could see the offer working for someone single or without kids that can move lightly into somewhere smaller, but it doesn't work for us.

Hi again.

That's a shame.  Have you put what you've summarised above to them?  For them not to consider it is nuts as most of the extra cost is deductible on their side.  Seems like they are cutting off their nose to spite their face.

Anyway, I wish you and your family the best.

Cynic
Expat Team

Yes have put it to them, they are a big Danish firm so thought they would have more serious answers.  They in fact suggested I take a loan in the UK to pay for the move!  We can afford it but we don't think it's right to make that kind of upfront financial commitment, It just doesn't pass the smell test!

I suggested as deftly as possible, that their relocation package won't attract anyone who is professional with a family. 

Unfortunately they are a typically large inflexible firm that can't simply make exceptions and change process...it's their loss.