Comprehensive Employment and Tax Guide Iceland
General Overview
- Currency: Icelandic Króna (ISK)
- Languages: Daily and business communication in Icelandic.
- Public Holidays: Total of 12 days national public holidays.
- Capital: Reykjavik
- Fiscal Year: Running from Jan 1 to Dec 31.
- Minimum Hourly Wage: Not established, but collective agreements set wages.
Tax Essentials
- Income Tax Range: Up to 46.24%.
- Other Taxes: VAT 24%, Corporate tax 20%.
Social Security Contributions
- Employer Charges: From Approx. 6% to 11.5%.
- Employee Charges: None (taxes cover social security).
Employment Contracts & Conditions
- Contract Types: Permanent, Fixed-term.
- Trial Periods: Up to 3 months.
- Paid Holiday: 24 days annually.
- Salary Payment Frequencies: Monthly.
- Termination Notice: Notice period varies, typically 1-3 months.
Legal Benefits for Employees
- Medical Coverage: State (comprehensive healthcare).
- Common Non-Compulsory Benefits: Additional pension, health insurance.
Hiring Non-Resident/Non-European Workers
- Visa & Work Permits Obligation: Yes, for non-EU/EEA citizens.
- High-Skilled Worker Permits: Not specifically available; general work permit process applies.
- Visa & Work Permits Timelines: Up to 90 days.
The information provided on these countries serves as a general guideline and may
require verification and updates from legal sources or official websites.
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