Photo: Maja Mohr Mortensen.

Artists and musicians, who are often self-employed, freelancers or combines, have long struggled to access a business bank account - a necessity for receiving fees, paying VAT and keeping track of finances.

Although a new law came into effect in January 2025 To ensure easier access to a basic business account, many continue to experience problems. This is because banks still have a lot of freedom to decide when a customer needs a business account - and what it can cost.

"There is no legal requirement to have a business account if you have a sole proprietorship or a PMV (Personally Owned Small Business). The problem arises when the banks themselves assess that you are self-employed - even if you don't have a CVR number - and then require you to open an expensive business account with them," explains Andreas Ring Andersen, legal consultant at Dansk Artist Forbund.

Big price differences - and high set-up fees

A review conducted by the Danish Artist Association shows that the cost of a business account varies significantly from bank to bank. The set-up alone can cost between DKK 1,000 and 5,000, and total costs in the first year range from DKK 4,000 to 7,500.

This makes financial planning difficult for small businesses and artists with fluctuating income.

Read more here: Worth knowing about business accounts

Minister: Banks are failing their corporate social responsibility

According to Business Minister Morten Bødskov (S), banks sometimes fail in their social responsibility.

"As I have said before, I do not believe that banks always live up to their responsibility and special role in society. Competition is not strong enough and it is too opaque to be a bank customer," he writes in a written response to Dansk Artist Forbund.

The minister's criticism aligns with the experience shared by many artists: that bank terms are difficult to understand and depend on how good a customer you are with the bank.

This is a particular problem for artists, as many in this group do not have a lot of financial activity in the bank because they often can't get large loans for home ownership, for example, as their income is unstable.

"It's unfair when the bank uses the same business models for artists as for large corporate customers," says Andreas Ring Andersen.

The consequences can be great

Without a business account, VAT-registered businesses are unable to reclaim excess VAT. This also applies to many artists and sole traders who rely on the separation of personal and business finances - both for tax and accounting purposes.

One member of Dansk Artist Forbund has even had his account closed because the bank deemed him to be self-employed - even though the member does not have a CVR number and receives most of his income as a B-honourarium.

"Our assessment is that the member is in an employee relationship. He works under instruction and fulfils the classic criteria for employment," says Andreas Ring Andersen.

What does the law say?

The new law is to ensure that companies and associations with a CVR number have easier access to a basic business account at one of the eight largest banks. The bank must process the application within ten working days, and any rejection must be justified.

But the law still gives banks the freedom to reject applications if they believe there is a risk of money laundering. And this is precisely where many experience problems:

If the bank does not consider the documentation to be sufficient, the application will be rejected - or you will be required to open a business account if they believe you have too many payments in your personal account - even if you do not have a CVR number.

A political question?

The law requires banks to offer the basic account "for a reasonable fee", which is determined based on costs and a reasonable profit. However, how "reasonable" is interpreted is not defined.

It has not been possible to get an answer from the Minister on what is meant by "reasonable" and how it should be interpreted. In a written response, the Ministry of Business and Industry states:

"The FSA monitors whether institutions charge unreasonable fees for a basic business account, for example. If this is the case, the FSA can order the institution to reduce the fee. In addition, it is possible to complain to the Financial Supervisory Authority if you experience unreasonable fees."

In the same written response, the Danish Minister for Business Affairs, Morten Bødskov, encourages Danish bank customers to research the market to see where they can find the best deal.

Read more here: Overview of prices in ten selected banks

What can you do?

If your bank requires you to set up a business account, you should:

  • Ask for a written justification from the bank.
  • Compare terms and rates at other banks.
  • Contact legal counselling, e.g. at Dansk Artist Forbund.

"We recommend that you always get a written justification and compare terms," says Andreas Ring Andersen.

If you have any questions, you can contact the Danish Artist Association's legal consultant at ara@artisten.dk