Come and be inspired by Iceland

Favourable business environment and infrastructure

Iceland focuses on a favourable business environment. A transparent and efficient tax regime with only 20% corporate income tax rate. Political stability with transparent rule of law. As part of the European Economic Area Iceland has implemented the bulk of EU business legislation. State of the art infrastructure with one of the world’s most reliable electricity transmission grid and redundant fiber optic connections.

Educated workforce

Icelanders are a relatively young nation with a highly educated workforce. Young people have traditionally sought higher education abroad, both in Europe and North America. English is universally spoken. Iceland is also part of the European inner market with a total workforce of over 250 million people. Foreign Experts outside the European Economic Area can enjoy fast track for work and residence permits as well as tax incentives.

Incentives for Direct Investments

New direct investment projects can apply for an investment agreement, ensuring regional incentives that apply outside the capital area. They can include a fixed income tax rate ceiling of only 15% for 10 years, full depreciation of assets, reduced property tax rate and social security charge, exemptions from customs and duties for capital goods and site lease at reduced rates. EU regulation also allows general incentives for SMEs, R&D and environmental protection.

Tax Incentives for Foreign Experts

Foreign experts, hired to work in Iceland, do enjoy personal tax incentives. A special tax deduction allows that only 75% of the income is considered taxable for the first three years of employment. Foreign experts from outside the European Economic Area (EU+EFTA) can also enjoy fast track applications for work and residence permits in Iceland.

R&D Support

Iceland offers incentives for research and development in the form of tax credits for innovation companies.  The aid is granted as a reimbursement of the paid income tax. The tax credit is 20% of the actual R&D cost with a current annual ceiling of a total actual cost of ISK 300 million for internal R&D or ISK 450 million for R&D cooperation between two independent innovation companies. The government has announced increased support and the removal of the annual ceiling.

Key Sectors

Key sectors include life science, data centers, geothermal power and tourism.

Location Access

Iceland is closer than you might think  – only 5-7 hours flight time from North America and 2.5-3 hours from Europe, with 80-100 daily departures.

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