Status
Open for applications
Always open
Category
Innovation, Research, Within Iceland
Type
Tax deduction
Service provider
The Icelandic Centre for Research
Tax deductions for foreign specialists
Tax incentives to attract specialists to Iceland for research, development, innovation, production, management, marketing, finance, IT, education and more.
Status
Open for applications
Always open
Category
Innovation, Research, Within Iceland
Type
Tax deduction
Tax deductions for foreign specialists
Open for applications / Always open
In order for the application to be fully valid, it must be submitted no later than three months after the foreign specialist(s) began working in Iceland, along with all the necessary and requested information for each specialist.
The tax reduction consists of allowing removal of 25% of income from taxable income base. This means that 75% of the income of the specialist is taxable, both for monthly tax assessments and the total year-end reckoning, for the first three hours of employment. Monthly tax payments which have been withdrawn from pay before the approval of the application are corrected. The applicant must request the correction from Iceland Revenue and Customs (Skatturinn) and send it to skatturinn@skatturinn.is along with their payslips.
Other pay-related fees, as well as child-support payments and mortgage interest benefits are based on total income.
This tax deduction does not automatically transfer between employers.
Who can apply?
Employers and/or an employee, in this case the foreign specialist. An employee is a foreign expert, irrespective of citizenship, if certain conditions are met
How to apply
Applications for tax deductions are made through the Rannís online application portal. The following documentation must be included:
Confirmation of residence from Registers Iceland (Þjóðskrá Íslands) - form C-122
Work contract
Resumé
Statement from the employer that the expertise in question or experience is not available in Iceland or only to a limited degree
Other material the applicant considers relevant
In order for the application to be fully valid, it must be submitted no later than three months after the foreign specialist(s) began working in Iceland, along with all the necessary and requested information for each specialist. Applications submitted late will be rejected.
Answers to questions
Questions may be sent to fes@rannis.is.
Service provider