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

Last Updated: Nov 04, 2008

Rental income taxes are quite low in Iceland

Rental Income: Non-residents earning rental income is subject to a flat withholding tax rate of 10% on the gross income. No deductions are allowed.

Capital Gains: Capital gains are taxed at a flat rate of 10%.

Inheritance: Beneficiaries are liable to tax on their inheritance, levied at 5%. The first ISK1,000,000 (€6,067) is exempt from taxation.

Residents: Residents are taxed on their worldwide income.

BUYING GUIDE

Last Updated: Aug 01, 2007

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