🇮🇸 Iceland Tax Guide - Income Tax, Corporate Tax & Special Regimes
🇮🇸 Iceland
IS / ISL #106
Nomad Score
52.0
Cities
12
Region
European Free Trade Association,
Nordic Countries,
Arctic Circle,
Remote Work Friendly Countries,
Nomad Visa Countries,
Islands,
Europe,
Europe,
Northern Europe
Currency
ISK
🇮🇸 ICELAND TAX PROFILE
Data year: 2025
Tax System
Worldwide
Combined state + municipal tax shown in brackets. Municipal rate ~14.7%.
Combined state + municipal tax shown in brackets. Municipal rate ~14.7%.
Top PIT Rate
46.2%
Corporate Tax Rate
20.0%
VSK
24.0%
Capital Gains Tax
22.0%
22% flat on capital income including gains.
22% flat on capital income including gains.
Social Security (Employee)
4.0%
Social Security (Employer)
6.4%
Dividend Withholding
22.0%
Interest Withholding
22.0%
Royalty Withholding
22.0%
Inheritance Tax
10.0%
Treaty Count
44
Participation Exemption
📊 INCOME TAX BRACKETS
Personal income
| Bracket Min | Bracket Max | Rate % | USD Equivalent |
|---|---|---|---|
| ISK 0 | ISK 4,188,216 | 31.5% | -- |
| ISK 4,188,216 | ISK 11,758,164 | 38.0% | -- |
| ISK 11,758,164 | and above | 46.3% | -- |
🏠 TAX RESIDENCY
Days Threshold
183 days
Residency Rules
Resident if domiciled or staying 183+ days in Iceland
Exit Tax
No
CFC Rules
Yes
CFC rules for low-taxed controlled entities
CFC rules for low-taxed controlled entities
📅 FILING INFORMATION
Fiscal Year
01-01 – 12-31
Filing Deadline
March 14
📚 SOURCES
-
Skatturinn Iceland
(accessed Mar 23, 2026)
Official 2025 brackets