Icelandic IBANs are 26 characters long and start with "IS" followed by two check digits. The remaining digits encode your bank, account type, account number, and a 10-digit identification number (typically your kennitala, Iceland's national ID number). You can find your full IBAN in your bank's online banking portal or mobile app.
The SWIFT codes for Iceland's three main banks are:
You will need a kennitala and a residence permit (for non-EEA/EFTA citizens) before you can open an Icelandic bank account. Our bank account guide walks through the process. Until your account is set up, a Wise multi-currency account or Revolut account can serve as a bridge for receiving funds.
Sending money out of Iceland
Sending money from Iceland works much the same way in reverse. All three major Icelandic banks support outgoing SWIFT transfers through their online banking platforms. Landsbankinn's international payments page details the process for their customers.
Wise and Revolut also work for outgoing transfers from Iceland. If you hold ISK in a Wise account, you can convert and send to over 80 countries at mid-market rates. This is particularly useful for freelancers invoicing clients abroad or for sending money to family in your home country.
Capital controls and regulations
Iceland imposed strict capital controls after the 2008 financial crisis. Those controls have been almost entirely lifted. The Central Bank of Iceland took further steps in January 2026 to ease remaining currency restrictions, allowing foreign currency inflows for new investments and outflows for future investments.
For anyone moving to Iceland and transferring personal savings or receiving salary from abroad, the remaining restrictions are unlikely to affect you. Standard relocation transfers, salary payments, and family support transfers all flow freely.
When making large transfers, your bank (on either end) may ask you to state the purpose of the transfer. This is a standard anti-money-laundering requirement, not a capital control. Common categories include "relocation expenses," "salary," or "property purchase." Keep documentation of the transfer purpose in case questions arise later.
Tax implications of incoming transfers
Not every transfer into your Icelandic bank account is taxable, but some are. The distinction depends on what the money represents.
Salary and freelance income from abroad is taxable in Iceland if you are a tax resident. You become a tax resident after spending 183 days or more in Iceland within any 12-month period. Once tax-resident, you owe Icelandic income tax on worldwide income, including earnings paid into foreign accounts. The Icelandic tax authority (Skatturinn) explains tax residency rules in detail.
Your own savings transferred from a foreign bank account to your Icelandic account are not taxable. You already paid tax on that money when you earned it. Keep records showing the source of funds in case of questions during tax filing.
Gifts are handled under general income tax principles. Iceland does not have a separate gift tax. Gifts received on occasions (birthdays, weddings) may be exempt if the amount is considered normal for the occasion. The Skatturinn gifts page covers the exemptions. For large gifts, consult an Icelandic tax advisor.
Property sale proceeds from selling a home abroad are generally not taxable in Iceland if you owned and lived in the property. Transfer the funds with clear documentation of the sale.
For a broader overview of how the Icelandic tax system works, see our tax system guide.
Practical tips for relocators
Before you move
Open a Wise account and verify your identity. This gives you a way to hold and convert ISK before you have an Icelandic bank account. You can also receive funds via Wise's account details if someone needs to send you money for initial expenses.
For the initial big transfer
If you are moving significant savings (from selling property, for example), compare quotes from Wise and OFX. Even a 0.2% difference in exchange rate matters on a 50,000 USD transfer. Monitor the ISK exchange rate for a week or two before transferring. The króna moves roughly 0.5% to 0.6% weekly against the dollar, so timing can save or cost you a meaningful amount.
For ongoing transfers
Set up a recurring transfer through Wise if you receive regular income from abroad. This automates the process and locks in the mid-market rate at the time of each transfer.
Keep records
Save confirmation emails and transaction receipts for every international transfer. You will need these during Icelandic tax filing season, which runs each spring (filing opens in March, with assessment finalized by early summer). Pre-drafted tax returns arrive from Skatturinn, but transfers from abroad may require explanation.
Use ISK for daily life
Iceland is almost entirely cashless, and card payments convert automatically if you use an Icelandic bank card. Paying with a foreign card adds conversion fees (typically 1% to 3%). Get your Icelandic bank account and card set up as soon as possible. Our cost of living guide covers what you will be spending on.
For a full overview of the relocation process, including banking and finances, see our moving to Iceland guide.
Frequently asked questions
What is the cheapest way to send money to Iceland?
For most people, Wise offers the lowest total cost. It charges 0.41% to 0.6% with no exchange rate markup. On a 5,000 USD transfer, that is roughly 20 to 30 USD. Bank wires from major US or European banks typically cost three to five times more once exchange rate markups are included.
Can I send money to Iceland before I have a bank account there?
Yes. You can receive money into a Wise multi-currency account using their ISK account details, or into a Revolut account. Neither requires an Icelandic kennitala or residence permit. Once you open an Icelandic bank account, you can transfer the funds locally.
Are there still capital controls in Iceland?
The capital controls imposed after the 2008 crisis have been almost entirely lifted. The Central Bank of Iceland continued easing restrictions through January 2026. Standard transfers for relocation, salary, savings, and family support are not restricted.
Do I have to pay tax on money I transfer to Iceland?
It depends on the source. Transferring your own savings is not a taxable event. Salary and freelance income earned abroad is taxable once you become an Icelandic tax resident (183+ days in Iceland). Gifts may be exempt if they are normal for the occasion. Consult Skatturinn or a tax advisor for large or unusual transfers.
How long does an international transfer to Iceland take?
Wise transfers typically arrive within hours, with many completing in under a minute. Bank wire transfers via SWIFT usually take one to three business days. Western Union cash pickups can be available within minutes.
You need the recipient's full name, their IBAN (26 characters, starting with "IS"), and their bank's SWIFT/BIC code. For Landsbankinn the code is NBIIISRE, for Íslandsbanki it is GLITISRE, and for Arion Bank it is ESJAISRE.
Last updated: March 2026