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Why Iceland?


Why Choose Iceland?

  • Green image and zero carbon footprint
  • One of the world’s most reliable power infrastructures
  • High level of education and flexible labour market
  • Cool climate location between the USA and Europe
  • Access to markets in the USA and Europe
  • Free trade agreement between Iceland and China
  • Favourable business environment with official support
  • Low taxes and legislative framework
  • Economic gain through cost efficiencies
  • European and Scandinavian regulatory framework
  • Political and social stability and low crime rates

 


Full government support

Icelandic authorities are committed to offering a favourable business environment. This includes a low 20% corporate tax and a new effective incentive regime aimed at foreign investment, especially in the high tech industry.

As a member of the European Economic Area, Iceland is part of the European internal market with European legislation, including a comprehensive data protection act, and tariff free access to the European Union.

Establishing a data center in Reykjavik is in perfect alignment with The City’s green industrial policies. Accordingly, the City offers any appropriate assistance to further such project. - Dagur B. Eggertsson, Mayor of Reykjavík.


Low Tax Rates

Income tax

Tax rates for limited liability companies and partnership companies are 20% for the income year 2015.  For limited partnerships and other corporations the tax rate is 36%. - PWC - Establishing Business in Iceland

Capital gains tax

For the year 2015 the capital gains tax is 18%. In the year the sale takes place, the capital gains from the sale is treated as taxable income. - RSK - Capital Gains

Value added tax

Tax Rate (the general VAT) in Iceland is 24%. However various consumer goods and services are subject to a lower VAT rate of 11%, for instance food, hotel accommodation, newspapers and books, heating, electricity and fuel. - RSK - Value Added Tax


Type of Company

Private Limited Company (PRLC)

A company limited by shares may have one or more shareholders.  When it is established the minimum requirement of share capital, including registration fee, is paid to the RSK (Directorate of Internal Revenue / Register of Enterprises division). The share capital requirement for a Private Limited Company is 500.000.- ISK (including the registration fee of 130,500 ISK. 

Before an establishment of a PRLC with a single shareholder can be made, a memorandum of association needs to be submitted to the RSK along with a VAT ID / Payroll form, Company Charter (stofnskrá), board resolutions (samþykktir), as well as a notification of the establishment of a PLC.

Investing in Iceland - learn more about PRLC´s, Public Limited Companies and othere types of companies.


Skilled Workforce

Iceland possesses a skilled workforce with a high-level of education. Consistently ranking in the top-10 for qualified engineers, IT skills and a high percentage of population completing a university education, Iceland has the human resources required to operate data centers.

From Hellisheiði


Global Peace Index

Iceland was chosen as the most peaceful country in the world for the seventh consecutive year by The Institute for Economics & Peace. Iceland is followed by Denmark, Finland and Norway. Amongst the factors the institute takes into account are the proportion of citizens currently incarcerated, freedom of the press, perceived willingness to fight in wars, access to weapons, the rate of violent crime, gender inequality, and the amount of political corruption.

Source: Institute for economics and peace

 

Financial Reporting and Auditing

A company operating in Iceland must submit annual accounts that comply with accounting rules and disclosures, which reflect a true and fair view of the company’s assets, liabilities, results and financial position as per standard EU requirements.

Every limited company in Iceland is required to elect an auditor or inspector and have its annual accounts audited. For public limited companies, a state-authorized public accountant must perform a full-scale audit. Publicly listed companies must elect two auditors, one of whom must be a state-authorized public accountant.