Europe · Nordics

Iceland

No wealth tax, a 22% capital gains rate and a genuine expert tax discount — but a remote-work visa deliberately capped below the tax residency threshold, and a citizenship backlog that has pushed the realistic wait past eight years.

Last verified July 2026181 visa-free destinations

Tax position

Income tax (top)
46.29% top marginal (31.35% state plus 14.94% average municipal) above ISK 1,398,450 a month
Capital gains
22%
Wealth tax
none — abolished 2015
Inheritance tax
10% (erfðafjárskattur) on net assets above ISK 6,789,790; 0% for a surviving spouse or cohabitant
Special regime
Foreign expert incentive: only 75% of income is taxed for the first 3 years
Territorial
No — worldwide income taxed
CFC rules
Yes
Exit tax
No
CRS
Participating

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