Iceland: Overview

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Quiet and peaceful in Iceland

Iceland (GDP/cap US$53,228) is in Northern Europe, an island between the Greenland Sea and the North Atlantic Ocean, northwest of the UK.

This is the least corrupt country in the world, 3rd most hospitable to investors, and the 5th most economically free country. It is among the Top 10 richest countries in the world.

The country is sparsely populated, with an average of about three inhabitants per square kilometer. Iceland has numerous active volcanoes. Much of it is made up of lava fields.

There are substantial restrictions on foreign ownership of real estate. Individuals must be residents of Iceland to purchase real estate.

RENTAL YIELDS

Research on-going.

TAXES AND COSTS

Rental Income taxes are relatively low in Iceland

Rental income: Nonresidents earning rental income, are taxed at a flat rate of 10%, without any deductions.

Capital Gains: Capital gains are taxed at either as business income at 23.75%, or investment income at 10%.

Inheritance: Inheritance tax is imposed on the share of the beneficiary at 5%, with an exemption for the first ISK1,000,000 (€11,442) of the share.

Residents: Residents are taxed on their worldwide income.

BUYING GUIDE

Very low transaction costs in Iceland

Round-trip transaction costs are very minimal from 1.92% - 2.52%. The buyer shoulders all costs when buying property, which include real estate agent's fee, stamp duty, and registration fee.

LANDLORD AND TENANT