Services

Capital: Reykjavik.
Official languages: Icelandic.
Currency: Icelandic króna (ISK).

 

 

Iceland is an island nation in the North Atlantic with a population of approximately 390,000; it is a member of the EEA, EFTA, the OECD, and the WTO, but not the European Union. Companies in Iceland operate under European corporate and tax law, yet the country retains its own currency and independent tax policy.

Tariffs
Карта Регистрация компании в Исландии
24% VAT
20% Corporate Tax
22% Dividends
500 000 ISK Minimum capital
0% Final tax on dividends paid to EEA companies

Company registration provides the following benefits:

 

  • Low taxes.
  • Stability and security.
  • Access to European markets.

Iceland’s business sector rests on four pillars: fisheries and fish processing, tourism, aluminum production, and energy. Virtually 100% of the country’s electricity is generated from renewable sources—specifically hydroelectric and geothermal power—resulting in some of Europe’s lowest industrial electricity rates and driving an influx of data centers and IT infrastructure projects.

GDP per capita is among the highest in the world (exceeding $100,000 in nominal terms). The OECD forecasts economic growth of 1.6% in 2026 and 2.2% in 2027. Inflation is declining but remains above the central bank's target level. Currency controls were lifted in 2017, allowing for the free movement of capital.

Taxation and Reporting Features

Corporate Income Tax:

  • Standard rate: 20%
  • For partnerships and other organizational forms without limited liability: 37.6%
  • Losses are carried forward to future periods for 10 years.

VAT:

  • Standard rate: 24%
  • Reduced rate: 11% (tourism, food service, books, passenger transport)
  • 0% Export of goods and certain services to foreign customers

Dividends:

  • 22% withholding tax on dividend payments to non-residents
  • 0% total burden for companies from EEA and EFTA countries and the Faroe Islands
  • 12% withholding tax on interest paid to foreign companies

Company registration in Iceland is handled by *Fyrirtækjaskrá*—the Register of Enterprises within the tax authority, *Skatturinn*. The company name must be unique and include an indication of the legal form (ehf. or hf.).

The memorandum of association (*stofnsamningur*) and the articles of association must be submitted in Icelandic. Every founder, director, and board member is required to hold an Icelandic identification number (*kennitala*); non-residents are issued a system number (*kerfiskennitala*).

The share capital must be deposited with an Icelandic bank prior to the submission of the application, as the registrar accepts documents only upon receipt of bank confirmation of payment. Once the company is entered into the register, it is assigned a *kennitala* and subsequently registered for VAT and as an employer, if it plans to hire staff.

State fee: approximately 140,500 ISK for an *ehf.* and approximately 256,000 ISK for an *hf.* (including the assignment of an identification number and publication in the *Official Gazette*).

At the time of registration, the company must have:

  • Choosing a company name: three options and a registered office address in Iceland are mandatory.
  • A notarized document confirming the residential address of all participants (utility bill, bank statement showing the address).
  • Confirmation of deposit of the authorized capital into an account in an Icelandic bank.
  • Compliance with residency requirements: the managing director and at least half of the management board must be residents of Iceland, an EEA country, or an EFTA country. A general exemption granted by the Minister of Industry and Trade applies to citizens of OECD countries.

Company Registration in Iceland 

  • Private company
  • Minimum of 1 director / 1 shareholder / 1 founder
  • Capital 500,000 ISK
Company Registration in Madeira
€ ~ 3000
Annual expenses: ~1000€

Tax Rates in Iceland

Corporate Tax 20%/37.6% 20% for ehf. and hf.; 37.6% for partnerships
VAT 24% Standard rate
Dividends 22% 0% for EEA companies via tax refund
Capital Gains 20%/22% For legal entities/individuals
Withholding Tax 6,35% Tryggingagjald (social security levy) on the payroll
Income Tax 43.3% Maximum rate

Additional information

Reporting
Confidentiality
  • Financial statements: mandatory annual filing with Ársreikningaskrá (Register of Annual Accounts) within 8 months of the end of the financial year.
  • Audit: mandatory for public companies, financial institutions, insurance companies, tour operators, and *ehf.* entities exceeding thresholds for assets, turnover, and headcount. Micro-enterprises submit abridged financial statements without an audit.
  • Tax return: filed with Skatturinn by May 31; advance payments are made monthly, except in January and October.
  • VAT reporting: every two months.
  • Details regarding the directors and the managing director are available in the public Fyrirtækjaskrá register.
  • Founder details are entered into the register upon registration; the current shareholder register is maintained by the company itself.
  • Shareholder data: Access restricted.
  • Financial statements are published and available to third parties.

Timeline and Stages

  • 01

    Document preparation and name selection

    1-3 days
  • 02

    Obtaining a *kennitala* / *kerfiskennitala* for founders and directors

    3-7 days
  • 03

    Opening a savings account and depositing the authorized capital

    2-5 days
  • 04

    Submission of documents to Fyrirtækjaskrá and entry into the register

    3-5 days
  • 05

    VAT and employer registration, opening a business bank account

    2-4 weeks

The bottom line

Registering a company in Iceland offers access to the European Economic Area (EEA) market without EU membership, a flat 20% tax rate, and some of the lowest renewable energy costs in Europe. This jurisdiction is suitable for IT companies, data centers, energy-intensive manufacturing, tourism and trade businesses, as well as holding structures that benefit from EEA dividend exemptions.

Key challenges include board residency requirements, the mandatory deposit of capital into an Icelandic bank prior to registration, and the preparation of documents in Icelandic. We recommend consulting with IT-OFFSHORE legal experts to ensure the company structure meets the requirements of *Fyrirtækjaskrá* (the Icelandic company registry) and banks from the outset.

We offer not only legal support during company registration but also a wide range of services, including accounting, nominee services, assistance with opening bank accounts, and comprehensive post-registration support.

Cost calculation

Add the required options for your company:

Итоговая стоимость ( база €3000 + доп):
€3000

FAQ

Can you register a company remotely?

Yes, in most cases — you can.

Remote company registration is available in the vast majority of popular jurisdictions today. Modern corporate services, electronic document management and professional registered agents make it possible to complete the entire registration process without being physically present in the country.

The process typically works as follows: you provide the required documents electronically, sign them remotely — via a notary, apostille or electronic signature — and a local registered agent handles all communication with government authorities and document submission on your behalf.

This has been made possible by several factors: most countries allow foreign founders and directors, corporate service providers operate remotely across the globe, and the digitisation of government registries has significantly streamlined and accelerated the procedures.

The one step that may still require in-person presence is opening a corporate bank account — however, even here many banks and fintech platforms now offer remote identity verification.

What documents are needed for registration?

Registering a company in most jurisdictions requires a standard set of documents. For individuals — founders and directors — the typical requirements include: a certified copy of a passport, proof of residential address (utility bill or bank statement no older than 3 months), and in some cases a bank reference letter or CV.

For corporate shareholders, the required documents include: certificate of incorporation, articles of association, register of directors and shareholders, and confirmation of the ownership structure.

Do I need to keep accounting records and submit reports?

Accounting and reporting requirements vary significantly depending on the jurisdiction. In most countries, companies are required to maintain proper bookkeeping, file annual financial statements and submit tax returns.

At the same time, there are a number of jurisdictions where reporting requirements are minimal or effectively non-existent for non-resident companies. These include, for example, the Marshall Islands, the Cook Islands, Panama, Belize, Seychelles and Vanuatu — in these countries, companies that do not conduct business within the territory of the registration state are generally exempt from mandatory financial reporting and audit requirements.

We provide full company administration services, including preparation and submission of annual reports, liaison with local authorities and ensuring full compliance with all corporate requirements of the jurisdiction.

Is it possible to open a bank account for a company?

Yes, opening a corporate bank account is possible for virtually any jurisdiction, however this process deserves careful attention. Today businesses have two main options: traditional banks and fintech platforms.

Traditional banks offer a full range of financial services, but account opening requirements have become increasingly stringent — KYC procedures, source of funds confirmation, business plans and in some cases in-person presence may be required. Fintech platforms — such as Wise, Airwallex, Revolut Business and others — open accounts significantly faster and remotely, making them a popular solution for international companies at an early stage.

Is it possible to use nominee directors?

Yes, the use of nominee directors and shareholders is a common and legitimate practice in international corporate structuring. A nominee director is formally listed in the company registry but acts exclusively in accordance with the instructions of the beneficial owner, providing an additional layer of privacy.

This service is particularly in demand in jurisdictions where information about directors and shareholders is entered into a public register — for example, in Cyprus, the United Kingdom, Malta and a number of other EU countries. In offshore jurisdictions, nominee services are also widely used to simplify corporate governance and protect ownership structures.

We provide nominee director and shareholder services for any jurisdiction we work with.

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