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.