Figures published by the Finance Denmark (Finans Danmark), which inludes the Danish Investment Association (Investering Danmark) suggest the number of registered equity savings accounts in the country doubled between May to the end of December 2019, from 25,000 to 50,000.
Birgitte Søgaard Holm, executive director, Investments and Savings, at Finanace Denmark, said: "The new figures show that a growing number of Danes have opened their eyes to the advantages that can be achieved by investing through an equity savings account (aktiesparekonto, or ASK). The accounts make it easier and more attractive ot invest, among others because investors do not have to manage income statements or check tax returns, it is all manged by the bank. On top of which, tax on returns is a bit lower when investing via an equity savings acount than by the general rules."
Finance Denmark is also keen to point out that the equity savings account regime is intended to encourage an investment culture, to create growth, and ensure that inflation does not hollow out savings.
"It is very positive that the savings ceiling has been raised to DKK100,000 (€13,382). We hope that it will contribute to a further rise in the number of established equity savings accounts in 2020, so that the more than DKK900bn (€120bn) that Danes have in the best case paying 0% interest in general deposit accounts can come out and work for the benefit of Danes," Søgaard Holm added.
The ASK regime was established by the Danish parliament in 2018, taking effect from 1 January 2019, initially with a maximum savings amount set at DKK50,000 and a flat tax rate of 17% on gains. The original proposals from the Danish government pointed to the maximum annual amount rising to DKK100,000 in 2020, DKK150,000 in 2021, and DKK200,000 in 2022. (https://www.regeringen.dk/nyheder/erhvervs-og-ivaerksaetter-aftale/aktiesparekontoen/)
From 1 January 2020, the accounts can allow holdings both in equities as well as shares of funds. The Danish Customs and Tax Administration has published a list of valid funds and their share classes here: https://skat.dk/getfile.aspx?id=140780.