Iceland Encouragement Laws

Corporate Income Tax:

• The standard corporate income tax rate is 20%.  
• This rate is intended to create a competitive environment for businesses.

Research and Development (R&D) Incentives:

• Iceland offers tax incentives for companies engaged in R&D activities.  
• Specific deductions and credits may be available.

Regional Development Incentives:

• Certain regions in Iceland may offer incentives to attract investments.  
• These incentives can include grants or tax reductions.  

Investment Agreements:

• The Icelandic government may enter into investment agreements with foreign investors.  
• These agreements can provide specific tax treatment or other incentives.

Energy Sector Incentives:

• Iceland's abundance of renewable energy sources (geothermal and hydroelectric) is a significant attraction for energy-intensive industries.  
• The government supports investments in sustainable energy projects.  

Innovation and Technology:

• Iceland aims to foster innovation and technological development.  
• Support is provided to companies in sectors like software development and biotechnology.  

Film Industry Incentives:

• Iceland provides incentives for film productions.  
• These incentives are designed to attract foreign film crews.  

International Agreements:

• Iceland has double taxation treaties with many countries.  
• These treaties prevent double taxation of income.  

Financial stability:

• Iceland has a well regulated financial sector, and has a history of political stability.

Geographic location:

• Iceland's location, between Europe and North America, can be an advantage for some international business.