Taxation in Iceland

Taxation in Iceland

Once a person has moved to Iceland and been registered in the National Registry, they need to contact the Director of Internal Revenue. Every individual who is registered as resident in Iceland and works there has to pay taxes. The website of the Directorate of Internal Revenue contains information on taxation of salaries, pensions, stocks, securities, benefits and the sale of assets.

As a main rule you pay tax in the country where you work and earn income. You are not to pay tax in two states on the same income. Double taxation agreements in effect between Iceland and most EEA countries provide for this.

Further information on taxation questions when moving to Iceland from another Nordic country to work or study can be obtained from the Directorate of Internal Revenue. 

Nordisk eTax

This portal is intended for persons who live in one Nordic country but earn income or have other activities in another Nordic country. The tax portal provides general information on taxes. Questions can also be sent directly to the relevant tax authorities.

Your work and residence determine where tax is to be paid and on what income or assets when moving from Iceland. 

Students

Persons who reside abroad while studying can apply to maintain their tax domicile in Iceland and by so doing retain all the rights that residence in Iceland entails under tax legislation and other laws on public levies.