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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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20% Corporate Tax

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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11th in Tax Competitiveness

International Tax Competitiveness Index 2023.

Ranked 11th globally, Iceland's tax system is highly competitive, thanks to its low corporate tax rate and well-structured property and consumption taxes.

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R&D Tax Credits

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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100% Achievement on SNS #1: Fast Startup Score

Efficiency of starting a business and administrative support.

With a perfect score for startup efficiency, Iceland offers a fully digital and streamlined process that makes launching a new business exceptionally fast and easy.

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2.6% GDP Growth in 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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80% on SNS #6: Access to Finance Score

Availability of public and private funding for startups.

Iceland's growing startup scene is supported by strong access to finance, with a mix of government funds and a burgeoning angel investor network.

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26th on Ease of Doing Business Ranking

Ranking highly for its business-friendly climate, Iceland offers efficient processes for getting electricity, paying taxes, and enforcing contracts.

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€52.50/hr Labour Cost

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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46.29% Top Personal Income Tax Rate

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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10th in European Health Index

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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1st on Global Cost of Living Rank

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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3rd on Global Happiness Rank

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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1st in Global Security Index

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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83.0% Working-Age Employment Rate

Percentage of population aged 20-64 that is employed.

With one of the world's highest employment rates, Iceland has a vibrant and flexible labor market with a highly educated and skilled workforce.

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95% on Digital First Score

Measures the digital-by-default availability of key public services.

As a leader in digitalization, Iceland offers a high level of online public services, leveraging its advanced tech infrastructure to create efficiency for all.

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3.5% Annual Inflation Rate

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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