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Tax Advantages
Iceland's corporate income tax rate is 20%, which is one of the lowest in Europe. At the same time, Iceland has signed treaties with more than 50 countries to avoid double taxation, protecting foreign investments from being taxed repeatedly.
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Efficient Business Environment
Iceland's business regulations and legislation are simple and clear, English is widely used in society, and combined with full protection of foreign investments and fair legal procedures, conducting trade and business activities in Iceland is simpler and more attractive compared to many other countries.
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Government Incentives
The Icelandic government values business and strives to create a friendly business environment. In addition to several advantages such as low corporate tax, land, and renewable energy, Iceland's Technology Development Fund provides initial stage funding of up to $500,000 for digital startups.
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Strong Infrastructure and Favorable Energy Costs
Iceland not only has excellent infrastructure but also offers the most competitive electricity prices in Europe, with electricity prices between 2-3 cents per kilowatt-hour for large industrial users, and the price of industrial steam is also very competitive.
Tax Info
Enter Dynamic Page- General CIT Rate
- 20 (for LLCs and limited partnerships); 37.6 (for other entities)
- CIT Return Due Date
- 31 May
- CIT Payment Due Date
- November 1st and December 1st
- CIT Estimated Payment Due Date
- Except for January and October, prepayments should be made on the first day of each month.
- Resident Withholding Tax (Dividend/Interest/Royalty)
- 22/22/0
- Non-Resident Withholding Tax (Dividend/Interest/Royalty)
- 21/13/22
- General VAT Rate
- 24
- General Capital Gain Tax Rate
- 20 (for corporations, same as CIT rate for LLCs); 22 (for individuals)
- Composite Effective Average Tax Rate
- 18.79%
- Composite Effective Marginal Tax Rate
- 14.93%
Administrative Regions
- 1 - Capital Region
- 2 - Southern Peninsula Region
- 3 - Western Region
- 4 - Westfjords
- 5 - Northwestern Region
- 6 - Northeastern Region
- 7 - Eastern Region
- 8 - Southern Region
Belonging Jurisdiction
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EEA - European Economic Area
European Economic AreaLearn MoreEuropean Economic Area -
IS - Iceland
IcelandLearn MoreIceland -
WORLD - Global
EarthLearn MoreEarth
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