Virtual office vs. physical office – what should you choose?

Choosing the right office solution is one of the first and most important decisions you'll make as an entrepreneur or self-employed professional. Will you rent physical premises and have a permanent base, or is a virtual office sufficient to run your business professionally and efficiently?

There isn't one right answer – but there is an answer that suits your situation. In this article, we’ll go through the differences, pros, cons, and economics, so you can make the right choice.


What is the difference between a virtual and a physical office?

And physical office is a rental where you and any employees come in and work from a fixed location. You pay rent, electricity, internet, cleaning, and typically a deposit.

And Virtual office is an address service that provides your business with a professional business address – without you leasing or using a physical location. You can receive mail, register your company in the CVR register, and appear credible to customers and authorities, no matter where you work from.


Price: what do the two solutions cost?

The most obvious parameter is economics. And here the difference is significant.

Physical office in Denmark (2025)

If you rent office space in central urban areas, you should typically expect:

  • Inner Copenhagen 2,000–2,800 DKK per m²/year – a small office of 50 m² therefore costs approximately 8,000–12,000 DKK/month in rent alone
  • Aarhus C and harbour areas: 1,200–1,800 DKK per m²/year
  • Provincial towns (Aalborg, Vejle, Herning): 700–1,200 DKK per m²/year

In addition to rent, there are ongoing operating costs: electricity, heating, internet, cleaning, and a deposit – typically equivalent to 3–6 months' rent upon signing the contract.

Virtual office

A virtual office in Denmark typically costs 249–500 DKK/month. for a basic package of address and mail handling. At CITYADDRESS, prices start from £249 per month. in both Copenhagen K and Aarhus C — without set-up fees and without a deposit.

Comparison

Virtual office Physical office (KBH K)
Monthly price From 249 kr. From approx. DKK 8,000.
Deposit 0 kr. 3–6 months' rent
Creation 0 kr. Lawyer, contract etc.
Binding Flexible Typically 1–3 years
Mail handling Included Self
Meeting rooms Add-on Included

Advantages and disadvantages: virtual office

Benefits

Low fixed cost. You only pay for the address and the service you use. No rent, no electricity, no cleaning.

A professional address from day one. With a virtual office in Copenhagen K or Aarhus C, you get a central address that strengthens your credibility – whether you're working from home, a café or abroad.

Protects your private address. Many entrepreneurs and freelancers run their businesses from home. A virtual office keeps their private address and their company address separate – both from customers and in public registers.

Flexible termination. You are not tied in for years. If your business changes, you can easily adapt or cancel your solution.

CVR registration included. You can legally register your company at the virtual address with the Danish Business Authority.

Disadvantages

No fixed workplace. If you need to be in an office every day, a virtual office won't meet that need by itself — but it can be combined with coworking or working from home.

No physical presence for customers. If your clients regularly visit your office in person, a virtual address alone is not sufficient.


Advantages and disadvantages: physical office

Benefits

Fixed workplace and structure. A physical office provides you and your employees with a fixed framework for the working day, which many find conducive to productivity.

Space for the team. If you have employees who need to sit together, a physical office is often necessary for collaboration, onboarding, and daily sparring.

On-site client meetings. If you receive customers or clients daily, a physical office provides the right setting.

Disadvantages

High fixed costs. Rent, electricity, internet, cleaning and a security deposit can easily add up to 10,000–20,000 kr. per month or more, depending on the location and size.

Language binding. Most office rental contracts run for 1–3 years, and it can be difficult to get out of an agreement if the company changes course.

Wasted time on transport. Fixed office hours and commuting take up time — and time is money, especially for solo self-employed people.


Who suits what?

Choose a virtual office if you:

  • Are you an entrepreneur, freelancer or self-employed?
  • Working from home or remotely
  • Will protect your private address
  • Appear professional without high fixed costs
  • I'm just starting out and want to keep costs down
  • Does your business operate digitally without the need for daily customer meetings?

Select ‘physical office’ if you:

  • Has a team that has to work together in person every day
  • Receives customers or clients directly at the address
  • Require warehouse or production space
  • In a growth phase where team size and collaboration require shared spaces

Can you combine the two?

Yes — and many companies do just that. A popular approach is to start with a virtual office and purchase access to meeting rooms as and when required. This gives you the professional address and credibility you need on a day-to-day basis, as well as the option to hold face-to-face meetings when necessary — without paying for premises that stand empty 90 % of the time.

At CITYADDRESS, you can combine your virtual office with optional extras such as mail scanning, physical mail forwarding and a business parking permit — and scale the solution as your business grows.


Conclusion: a virtual office is the obvious starting point

For most entrepreneurs, freelancers and small businesses, a virtual office is the most sensible solution. You get a professional address in an attractive postcode area, legal CVR registration and professional mail handling — at a fraction of the cost of a physical lease.

A physical office makes sense when you have a team that needs to work together, or when you have customers visiting on a daily basis. But for many businesses, that’s not where you start at all.

At CITYADDRESS, we offer virtual offices in Copenhagen K and Aarhus C from as little as £249 per month. — with no setup fee, no deposit and flexible termination.

Create your virtual office here


Do you have any questions about which solution is best suited to your business? Contact us on +45 23 23 77 26 or kontakt@cityaddress.dk — we'll be happy to help.

What does a virtual office cost in Denmark?

Are you considering a virtual office but unsure of the actual cost? You are not alone. Many entrepreneurs and freelancers are looking for a professional company address without paying for physical office space – and prices vary more than most people expect.

In this article, we'll go through what you can expect to pay for a virtual office in Denmark, what factors affect the price, and what you exactly get for your money.


What is a virtual office?

A virtual office is an address service that provides your business with a professional business address – without you renting physical office space. You can receive mail, register your business with the CVR register, and appear professional to customers and partners.

The solution is particularly popular among:

  • Entrepreneurs and solo self-employed individuals working from home
  • Freelancers who do not wish to disclose their private address
  • International companies wishing for a Danish business address
  • E-commerce businesses without the need for a physical office

What does a virtual office cost in Denmark? (Price overview)

Prices for virtual offices in Denmark typically range from approx. 200 DKK to 1,200 DKK per month excluding VAT, depending on location, service level, and provider.

Basic package: Address + mail handling

The cheapest tier covers the address itself and basic mail handling. The prices here are typically:

Price level What is included
£20-£30 per month. Address, receipt of post, optional scanning
300–500 DKK/month. Address, scanning, forwarding, notifications
500–800 DKK/month. Address, extended postal handling, possible telephone service
800–1,200 kr/month. Address, post, meeting rooms included

CITYADDRESS: From 249 kr/month.

At CITYADDRESS, virtual office prices start from 249 kr. per month — both in Copenhagen K and Aarhus C. There is no setup fee (which otherwise typically costs DKK 995 excl. VAT with other providers), and no tie-in beyond the current contract period.

You will receive a professional address in one of Denmark's most expensive and sought-after postcodes, which can be used on your website, business cards, when dealing with customers, and in the CVR register.


What affects the price of a virtual office?

Location

An address in Inner Copenhagen (e.g. 1000–1499 K) or Aarhus C typically costs more than an address on the outskirts of a city or in a provincial town. Conversely, a central address signals far more credibility to customers.

2. Mail handling

The more service you want with your post, the higher the price. The most common variations are:

  • Self-pickup — you collect the mail from the provider (cheapest)
  • Scanning post – the mail is scanned and sent digitally to you
  • Physical forwarding — the post will be sent to your desired address
  • Daily notification — you receive a notification with a picture every time mail arrives

3. Meeting rooms

Some providers include access to meeting rooms in the package — either free hours per month or at a fixed price. This is typically reserved for the more expensive packages (from approx. DKK 500–800/month and upwards).

4. Telephone service (call centre)

If you want a receptionist to answer calls on behalf of your company, it costs extra — typically from DKK 360/month upwards. This is not included in the standard address service.

5. Binding period and payment frequency

Many providers offer a lower monthly rate if you pay quarterly, half-yearly or annually rather than monthly. This can save you 10–25 % over time.


What is included – and what costs extra?

It is important to know the difference between what is included in the basic price and what is purchased additionally:

Typically included in the basic price:

  • CVR registration at the address
  • Receiving letters and parcels
  • Access to your company address on all documents, website and business cards

Typical extra payment:

  • Scanning of mail beyond a monthly number
  • Physical forwarding of mail (+ postage)
  • Meeting rooms (for non-inclusive packages)
  • Telephone service / call centre
  • Company sign at the main door

Er et virtuelt kontor lovligt i Danmark?

Yes — it is perfectly legal to use a virtual address as a company's official address in the CVR register. However, a few requirements apply:

  • The address must be manned — a private individual shall be able to receive mail
  • Post box is not allowed Company address
  • The provider shall be registered with the Danish Business Authority in accordance with the money laundering act

At CITYADDRESS, all these requirements are met. We are registered with the money laundering register, and you can confidently register your business at our address.


What are you saving compared to a physical office?

To put the price into perspective: an office rental in central Copenhagen typically costs well over DKK 10,000 per month – in addition to electricity, internet, cleaning, and a deposit.

A virtual office for £249–500/month gives you:

  • In Professional address in an attractive postcode
  • Mail handling without you having to physically show up
  • No commitment and no hidden fees
  • Possibility of Upgrade as your business grows

This equates to a saving of 95–98 % compared with a traditional office lease.


Hvem passer et virtuelt kontor bedst til?

A virtual office is the right solution if you:

  • You run a business from home and don't want your home address exposed.
  • Renting and want to avoid conflicts with your landlord regarding business at the address
  • I am an entrepreneur and want to appear professional from day one
  • I work remotely and have no need for a permanent office.
  • Is a foreign company and wants a Danish CVR-registered address

A virtual office is not obstructed the right solution, if you receive customers physically daily, require fixed storage space, or need full office space for staff.


Get your virtual office at CITYADDRESS

CITYADDRESS offers virtual offices in Copenhagen K and Aarhus C From DKK 249/month. — with no setup fee, no deposit and flexible termination.

You can register your business at one of Denmark's most attractive business addresses, presenting a professional image to customers, partners, and authorities — from day one.

Create your virtual office here


Do you have questions about our address service, mail handling, or business parking permit? Contact us by phone on +45 23 23 77 26 or by email at kontakt@cityaddress.dk.

Cityaddress