Unless you are a Scandinavian citizen, you will find Denmark, and especially its capital Copenhagen, to be more expensive than other European countries. Denmark did not switch over the Euro currency like its European neighbors. What makes the country expensive is the 25% value-added tax and high prices on a variety of items. The tax included in everything from hotel rooms to restaurant meals.

Your actual cost when visiting Denmark will depend on when you travel, what you want to do and where you'll stay.

Luckily, it is possible to visit the country without declaring bankruptcy on your return home. The following pointers will help you keep an eye on your money, even if it means curbing your spending habits a bit.

Plan Well Ahead

Except for booking your flights online in advance, it is time to familiarize yourself with Denmark’s high and low seasons. The high season coincides with European school holidays and the summer months. Opt for going any time between August and May. The winter and spring months will be colder, but you will be saving a fortune on accommodation. Low season prices will be a fraction of what a high season holiday will cost you.

Consider Hostels and Campgrounds

Denmark is famous for them. Should you want to visit Denmark during the peak season, consider making use of the extensive lists hostel or campgrounds. Hostels will accommodate people of all ages and will be the most affordable option, although you might be sharing bathrooms with others in some instances. Danish hotels are called Danhostels and are part of the HI (Hosteling International) network.

They offer family and private rooms for 1-5 travelers.

As an alternative to a hostel, go with one of the nice budget hotels in Copenhagen.

Wining and Dining in Denmark

With the exclusion of hotels that include lunch or dinner in their nightly rate, you are left to your own devices when it comes to food. Eating out every day will quickly burn a hole through your holiday budget. Bakeries offer fantastic breakfast on-the-go specials, however. You can expect to pay between 10 to 15 Kroner for a good selection of pastries and some coffee. Certain supermarkets also offer great daily ready-meal specials. IKEA is one of these markets where you can pick up a meal and dessert for about 25 to 30 Kroner.

If you want the true restaurant experience for less money, go at lunchtime, when most restaurants offer lunch menus.

Don’t expect to be sipping cocktails during your trip if you want to save money in Denmark. Alcohol is extremely expensive due to additional taxation. Opt for beers and ciders if you want to get your party on. Happy hour offers an alternative to save some money on drinks in Denmark.

Walk a Bit More in Denmark

Public transport is fairly cheap, but you can really walk to most places, especially if you are in a central location. Walking is a great way to explore the city and parks and meet the locals. Stroget in Copenhagen is a pedestrian street that offers a great experience and cheap meals.

To cover more ground, you can also make use of the free CityBike service. Denmark is very bike-friendly. Bikes can be rented at shops around the city center.

Alternatively, purchasing a Copenhagen Card is a very economical option if you are planning on doing some sightseeing and exploring. This card allows for free and discounted public transport and access to numerous museums and other attractions.

Ditch the Plastic Money

Even if most ATMs in Denmark can give cash advances for your VISA or MasterCard, they aren’t open 24 hours and cost a bit. Many ATMs are located inside buildings which are shut down between 1 am and 6 am. You might get a good rate when withdrawing cash, but you will be paying a surcharge PLUS your normal banking fees for oversees transactions PLUS an unfriendly exchange rate. Instead of using your card at the ATM, get Kroner for cash to receive the best exchange rate.

Modest Tipping in Denmark!

Even if this sounds frugal, service charges are included in your fares and quoted prices in Denmark. It is fine to give a monetary tip for exceptional service, but keep in mind, a few more Kroner here and there quickly add up to quite a bit of money. In Denmark, keep the tipping on the low end.

Keep Those Receipts...

Here's a useful money-saving tip that not everyone is aware of. You can claim back VAT on purchases made, assuming that you keep the receipts. A 25% return on your purchases is a nice surprise at the end of your holiday. Look for the VAT reimbursement logo to find the office at the airport you're flying home from.