Iceland

Northern Europe · IS · 44 treaties

Tax profile

What makes you a tax resident — and how hard it is to stop being one.

• permanent residence (legal domicile) in Iceland under Article 1 of the Income Tax Act creates unlimited tax liability
• staying in Iceland for more than 183 days in any 12‑month period creates tax residency from the date of arrival
• staying in Iceland for less than six months in a twelve‑month period results only in limited tax liability on Icelandic‑source income

Tax residency normally ends when you leave Iceland, but former residents with Icelandic domicile remain subject to unlimited tax liability for three years after departure unless they prove tax residency in another country, which adds a moderate tail to breaking residency.

Source: Iceland Revenue and Customs (Skatturinn)

Tax treaty network (43)

In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.