What are the tax regulations for new residents?

Published by Movingtoiceland Editor on

Residents in Iceland are subject to both state and municipal taxes, which cover income, capital income, and property. New residents are considered tax-resident in Iceland once they have stayed in the country for 183 days within a 12-month period, and are then subject to tax on their worldwide income. The tax system in Iceland is progressive, meaning that the tax rate increases as income increases. Additionally, there is a value-added tax (VAT) on goods and services. It’s crucial to understand the tax regulations applicable to you, as failure to comply can result in penalties.

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Movingtoiceland Editor

Movingtoiceland Editor

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