About Iceland
Iceland offers abundant renewable energy at competitive prices, a highly educated English-speaking workforce, and a transparent Nordic business environment ideal for data centers and green industries.
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.
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.
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.
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.
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
None-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%
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