The\u00a0benefits of doing\u00a0business in Iceland include:<\/p>\n
- \n
- UK is the closest neighbouring country with good logistic connections<\/li>\n
- English widely used as business language<\/li>\n
- familiarity with British goods as UK is the preferred shopping place<\/li>\n
- little manufacturing of consumer goods in Iceland<\/li>\n
- compact market as high concentration of consumers in Reykjavik<\/li>\n<\/ul>\n
While the strengths of the Icelandic\u00a0market are:<\/p>\n
- \n
- high purchasing power<\/li>\n
- quality minded consumers<\/li>\n<\/ul>\n
The UK is Iceland’s eighth largest import market, and the top \u00a0exports from the UK to Iceland include:<\/p>\n
- \n
- food and beverages<\/li>\n
- industrial supplies<\/li>\n
- fuels and lubricants<\/li>\n
- capital goods<\/li>\n
- transport equipment<\/li>\n
- consumer goods<\/li>\n<\/ul>\nIf you\u2019re doing business in Iceland, you\u2019ll need a reliable and cost-effective conference call<\/a>\u00a0provider to help keep in touch when travelling isn\u2019t an option. Here\u2019s\u00a0How to set up a conference call between the UK and Iceland<\/a>.<\/em><\/div>\n\n
And remember, you can now screen share and video conference, using Crankwheel<\/a>.<\/p>\n
How does tax work in Iceland?<\/h2>\n
A double taxation agreement exists between the UK and Iceland, so tax isn\u2019t paid twice \u2013 once in each country \u2013 on exported goods and services.<\/p>\n
The main tax rates include:<\/p>\n
- \n
- Corporate Tax<\/strong>\u00a0\u2013 set at a rate of 20%<\/li>\n
- Income tax<\/strong>\u00a0\u2013 ranges from 37.3% to 46.24%, depending upon income.<\/li>\n
- Capital Gains Tax<\/strong>\u00a0\u2013\u00a0set at a rate of 18%.<\/li>\n
- Valued Added Tax<\/strong>\u00a0(VAT) \u2013 charged at 25%.<\/li>\n<\/ul>\n
How will I be affected by customs in Iceland?<\/h2>\n
Although not part of the EU, Iceland is part of the European Economic Area (EEA), which means there is generally free movement of goods to and from the UK. It’s worth noting that the agreement applies mainly to industrial goods, certain farm products, and specific species of fish.<\/p>\n
Any goods not covered by the agreement are levied with the same duties as goods from outside the\u00a0EEA<\/abbr>. For more information, contact the\u00a0Directorate of Customs<\/a>,or visit the\u00a0Market Access Database<\/a>\u00a0for more on tariffs.<\/p>\n
- Income tax<\/strong>\u00a0\u2013 ranges from 37.3% to 46.24%, depending upon income.<\/li>\n
- Corporate Tax<\/strong>\u00a0\u2013 set at a rate of 20%<\/li>\n
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