Iceland Tax-Exempt Income (2025)



Iceland Tax-Exempt Income: Factual Overview for Foreign Investors



Specific Dividend Income:

  • Certain dividend income may be exempt from Icelandic taxation, depending on the source and the recipient's residency status, based on double taxation treaties.


Specific Interest Income:

  • Certain interest income, particularly from specific government bonds or under specific treaty provisions, may be exempt.


Income from International Organizations:

  • Income received by individuals working for specific international organizations based in Iceland may be exempt.




Income Exempt Under Double Taxation Treaties:

  • Income may be exempt based on specific provisions within double taxation avoidance treaties Iceland has with other countries.


Specific Social Benefits:

  • Certain social benefits provided by the Icelandic state are tax-exempt.


Specific Capital Gains:

  • Some capital gains may be tax exempt, based on the type of asset, and the length of time that the asset was held.


Income from specific scientific research:

  • Income derived from specific scientific research projects may be tax exempt.




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