Tax deduction from the income of foreign experts

Foreign experts, who are hired to work in Iceland as of 1 January 2017 can apply for tax deduction. Experts qualifying are authorised to deduct 25% of income, i.e. only 75% of their income is taxed, by withholding and assessment, for the first three years of employment.

An application for deduction as well as supporting documents shall be submitted to a special committee, no later than three months from the date when the employee began work in this country.

LOCAL relocation will assist you in preparing and filing the application.