Business Environment

             

Iceland has systematically made its business environment increasingly attractive for investment and location. A new Act on incentives for initial investments in Iceland has been adopted and Iceland has one of the lowest levels of corporate income tax in Europe. Iceland was listed as a top performer on the World Bank rankings of best places to start a business. Iceland minimizes red tape for international business, allowing decisions to be made and implemented quickly, with little time wasted.

Foreign ownership of business is welcome in Iceland, with few exceptions regarding fishery and energy production. As a member of the 28-nation European Economic Area (all EU states and three of the four EFTA states), Iceland implements the same basic liberal business philosophies as the European Union. All EU commercial legislation and directives take effect in Iceland. Consequently, Iceland makes an ideal springboard for tariff-free access to the major EU market area, as well as a fully competitive location for EU companies to operate. Many foreign companies have set up operations in Iceland, largely around high tech industries and energy technologies.

See more on doing business in Iceland here.