The Icelandic economy has undergone drastic changes since the financial crisis in 2008. This report provides an overview of the current state of the economy, recent developments, and future prospects.

The economy continues its robust recovery. Strong household income growth and investment will fuel domestic demand in 2016. However, as investment slows and interest rates increase growth will begin to moderate. Lifting the capital controls introduced during the financial crisis is planned to begin in 2016.

The business environment in Iceland is fast moving, focused and company friendly. It is not restricted by complex regulations nor burdened with a heavy system of taxation.

Iceland’s operating environment is competitive with leading countries in the industrial world. With its low tax structure, high education levels and competitive costs for skilled labour, land and electricityIceland is a strong candidate for businesses to short-list when seeking new locations for their international operations. 

The most common and economically important type of business in Iceland is the limited company. Other structures are partnerships, cooperative societies, official limited companies, businesses run by the self-employed and branches of foreign limited companies.

When you establish a business you must make sure to choose the form most suitable to the scope, purpose and type of operations. 

This site provides a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Iceland.

Brief description of important registration facts and contact information for a company that can handle Iceland registrations

The Personal Income Tax Rate in Iceland stands at 46.20 percent. Personal Income Tax Rate in Iceland averaged 44.24 percent from 1995 until 2015, reaching an all time high of 46.90 percent in 1996 and a record low of 35.70 percent in 2007. Personal Income Tax Rate in Iceland is reported by the Directorate of Internal Revenue.

Resident individuals are fully liable for tax payments in Iceland on their worldwide income.

The Corporate Tax Rate in Iceland stands at 20 percent. Corporate Tax Rate in Iceland averaged 23.65 percent from 1993 until 2015, reaching an all time high of 33 percent in 1994 and a record low of 15 percent in 2008. Corporate Tax Rate in Iceland is reported by the Directorate of Internal Revenue.

Resident corporations pay tax on their worldwide income less operating expenses. Deductible operating expenses are comprised of all the expenses and costs needed to provide, insure, and maintain income.

The Sales Tax Rate in Iceland stands at 24 percent. Sales Tax Rate in Iceland averaged 25.07 percent from 2010 until 2016, reaching an all time high of 25.50 percent in 2011 and a record low of 24 percent in 2015. Sales Tax Rate in Iceland is reported by the Internal Revenue Directorate.

Tourists who reside abroad can claim a proportional VAT refund when shopping in Iceland. The refund is limited to purchases that are intended to be taken out of the country and amount to a minimum of ISK 4.000 (including VAT), made at a single point of sale.

See “Entry, Exit and Visa Requirements” on this site.

Comprehensive Information on Iceland Visa Requirements

Land and air travel advice for Iceland

Telecommunications in Iceland is a diversified market.

Iceland Telecom provides all telecommunication, mobile and Internet services to private and corporate clients in Iceland.

318 tips on getting to and getting around Iceland from real travelers and locals.

This site provides a listing of news reports on a variety of labor law issues in Iceland

A copy of the Icelandic Labour Law

Unemployed people can register on the unemployment list to become entitled to unemployment benefits. They will also receive counselling and assistance in the their job search.

Iceland enjoys a much milder climate than its name and location adjacent to the Arctic circle would imply. A branch of the Gulf Stream flows along the southern and the western coast greatly moderating the climate. 

Iceland’s weather is cool, and the Icelandic climate is temperate. The warm North Atlantic Current ensures generally higher temperatures than in most places of similar latitude in the world.

Average prices of more than 40 products and services in Iceland. Prices of restaurants, food, transportation, utilities and housing are included

List of prices in Reykjavik (Iceland) for food, housing, transportation, going out, and more on May 2016. Compare the Cost of Living in Reykjavik with any other city

Attitudes and values form the basis of any particular culture. They reflect both the ways people think and behave.  Some knowledge of these can therefore be of significant importance if you wish to communicate with your counterparts effectively. 

This site provides practical ways to master business etiquette in Iceland. 

See “People and Society” on this site

Iceland is easily one of the world’s safest countries and crime is almost non-existent here. 

Latest travel advice for Iceland including safety and security, entry requirements, travel warnings and health

A fundamental principle of the Icelandic educational system is that everyone should have equal opportunities to acquire an education, irrespective of sex, economic status, residential location, religion, possible handicap, and cultural or social background

This site lists the most popular international and bilingual schools in Iceland: nursery schools, primary and secondary

Comprehensive list of National and Regional Public Holidays that are celebrated in Icelandduring 2016 with dates and information on the origin and meaning of holidays.

Formerly ruled by Norway and Denmark, the majority of public holidays and observances in Iceland are based on strong Scandinavian and Roman Catholic traditions.

This article is about the demographic features of the population of Iceland, includingpopulation density, ethnicity, education level, health of the populace

Iceland Customs regulations and procedures for importing and exporting goods at border. 

This site provides key information on Iceland’s participation in the WTO. Iceland has been a WTO member since 1 January 1995 and  a member of GATT since 21 April 1968.

The EU is by far Iceland’s most important trade partner, followed by Norway, the United States, Brazil, China and Switzerland. Iceland is a member of the European Economic Area and the European Free Trade Association

Iceland’s tourist season is concentrated from mid-June through August, and tourism is growing by about 10% each year; so booking ahead is often essential. Prices fall as much as 40% in the off season, but many accommodations close in winter, especially guesthouses.

Find an accommodation, rent a house in Iceland and much more. Iceland housing and real estate.

TripAdvisor has 308,979 reviews of Iceland Hotels, Attractions, and Restaurants making it your best Iceland resource

Expert picks for your Iceland vacation, including hotels, restaurants, entertainment, shopping, top attractions, and more.