Moving to Iceland: taxes, residence and life
How to become tax resident in Iceland: personal, dividend and corporate tax, 4 residence programmes, days needed, climate, safety and economy — compared with 194 countries.
Taxes
In Iceland the top income tax rate is 46%, dividends are taxed at up to 22% and companies pay 21% corporate tax.
How to move and become tax resident
You can become tax resident in Iceland from arrival once you take up residence (Legal domicile (lögheimili) registered in Iceland, or >183 days in 12 months). The typical route is EU/EFTA free movement (Swiss citizens: register as self-sufficient): Sufficient resources + comprehensive health insurance; register within ~3 months; clean record not formally required There are 4 open residence programmes in Iceland — see the list below.
Living there
Reykjavik has a subpolar oceanic climate with winter highs around 2 °C and summer highs around 13.9 °C. The economy grew +1% in 2025; the IMF forecasts 2% for 2026. Its passport opens about 159 countries without a visa in advance. Security: No armed forces; no conflict exposure.
Key facts
| Top income tax | 46% |
|---|---|
| Dividend tax | 22% |
| Corporate tax | 21% |
| Residenza fiscale | dall'arrivo — Legal domicile (lögheimili) registered in Iceland, or >183 days in 12 months |
| Via di residenza tipica | EU/EFTA free movement (Swiss citizens: register as self-sufficient) — Sufficient resources + comprehensive health insurance; register within ~3 months; clean record not formally required |
| Passaporto | senza visto o visto all'arrivo in 159 paesi |
| Economic growth | +1% (2025), forecast 2% (2026) |
| Tipo di clima | subpolar oceanic · 2° / 13.9° (Reykjavik) |
| Guerra & conflitti | none — No armed forces; no conflict exposure |
| Tutti i rischi naturali | 5.8/10 |
| Solidità bancaria | 7.5/10 · A+ |
| Tutela della proprietà | 8.5/10 |
| Case calde d'inverno | 10/10 |
Residence programmes in Iceland
- Registration of EEA/EFTA nationals (incl. Swiss) — freeMovement · open · 2026-10
- Long-term visa for remote work — Reddito / anno CHF 77'760 · open · 2026-10
- Residence permit based on work (expert knowledge, labour shortage, service contract) — employment · open · 2026-10
- Residence permit for spouse/children (family reunification) — family · changing · 2026-10
Plan your residence route
Frequently asked questions
How many days do I need to spend in Iceland to become tax resident?
dall'arrivo. Legal domicile (lögheimili) registered in Iceland, or >183 days in 12 months Worldwide income
How much tax will I pay in Iceland?
In Iceland the top income tax rate is 46%, dividends are taxed at up to 22% and companies pay 21% corporate tax.
Which residence programmes does Iceland offer?
Registration of EEA/EFTA nationals (incl. Swiss); Long-term visa for remote work; Residence permit based on work (expert knowledge, labour shortage, service contract); Residence permit for spouse/children (family reunification)
What is the usual way to move to Iceland?
EU/EFTA free movement (Swiss citizens: register as self-sufficient). Sufficient resources + comprehensive health insurance; register within ~3 months; clean record not formally required
Compare with nearby countries
Albania · Andorra · Austria · Belarus · Belgium · Bosnia and Herz. · Bulgaria · Croatia · Cyprus · Czechia · Denmark · Estonia
Solo informazione generale – non è consulenza fiscale, legale, migratoria, d'investimento o finanziaria, né un rapporto con il cliente. Dati semplificati, indicativi e forse non aggiornati. Verificate sempre con l'autorità ufficiale e un professionista abilitato del paese prima di agire. Eventuali link partner sono indicati e possono generarci un compenso.