Purchasing power in the Danish capital of Copenhagen is similar to that of other large European cities, and prices are considerably lower than in, for example, New York when housing costs are included.
Many welfare services that strain household budgets in other countries are either free or state-subsidised in Denmark. Medical help, hospital treatment, schooling and elderly care are all free – and daycare for children is far cheaper than in many comparable countries.
This is why the average Dane pays approx. 50 per cent of his/her income in taxes.