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Iceland

Iceland offers a unique blend of innovation, quality of life, and economic opportunity within the European Union.

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Iceland

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Corporate Tax Rate 20% (2025)

The standard flat rate for all business profits.

Iceland's simple and competitive 20% flat corporate tax rate provides a stable and attractive fiscal environment for businesses in a unique and strategic location.

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R&D Tax Credit Up to 35% (2025)

Up to 35% tax credit for R&D project costs.

Iceland strongly supports innovation with generous tax credits for R&D, offering companies a reimbursement of up to 35% of their research and development costs.

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GDP Growth 1.4% (2025)

Annual real GDP growth rate forecast.

Iceland's unique, tourism- and energy-driven economy is projected to experience robust growth, building on its strong recovery and innovative sectors.

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Labour Cost €53,00/hr (2024)

Iceland's high labour costs are a reflection of its highly productive, skilled, and educated workforce, which drives its high-value, knowledge-based economy.

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Top Personal Income Tax Rate 46.29% (2025)

A combination of state and average municipal income taxes.

Iceland's progressive tax system, which includes state and municipal taxes, funds the country's comprehensive public services and strong social welfare system.

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Euro Health Consumer Index Score 10th (2026)

Overall measure of national health system performance [1].

With a top-10 European ranking, Iceland's healthcare system provides high-quality, universal coverage to its citizens, ensuring excellent health outcomes.

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Global Cost of Living Rank 7th (2026)

Measures relative costs of goods and services.

Iceland's high cost of living is reflective of its high wages, exceptional quality of life, and the unique logistics of an island nation.

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Global Happiness Rank 3rd (2024)

Evaluates national wellbeing and overall life satisfaction.

Consistently ranked among the top 3 happiest nations, Iceland's incredible natural beauty, tight-knit community, and high social trust create a unique quality of life.

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Global Peace Index 1st (2025)

Assesses national peacefulness, safety, and security levels.

As the most peaceful country in the world, Iceland offers an unparalleled level of safety and security, with extremely low crime rates and high social stability.

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Annual Inflation Rate 3.7% (2025)

Measures the change in consumer prices over time.

Iceland's central bank is actively managing inflation to ensure long-term price stability, creating a predictable economic climate for businesses and consumers.

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Embassies and Consulates

Iceland has embassies and consulates worldwide that offer visa services and assistance to its citizens abroad. A current list of these missions is available on the Ministry of Foreign Affairs website.

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Entry for EU citizens

EU citizens can travel to Iceland carrying either a valid passport or a national identity card (ID card).

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Entry for Non-EU citizens

Non-EU citizens should apply a Schengen short-stay visa. The passport or travel document of Non-EU/EEA citizens must remain valid for at least three months beyond their stay in Iceland.

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