Iceland has a generous welfare state and paying taxes is an important part of contributing to the society as a whole.
All residents (those who have been more than 6 months in Iceland in a rolling 12 month period) must pay taxes on worldwide income in Iceland.
Tax returns must be completed every March for the previous year (tax year is Jan to December). Employers can help with this but the self employed need to pay withholding taxes each month in advance of tax being due. Accountancy advice is important, but expensive in Iceland.
Personal tax credit is a tax deduction employees can use to lower the tax withdrawn from their salaries by the employer. The personal tax credit is 54.628 ISK per. month in the year 2020. The same applies if you have other income such as pension, benefits etc.
An individual that stays in Iceland for less than six months in a twelve-month period, has limited tax liability in Iceland. This means he has to pay tax on income arising from sources in Iceland although he still has unlimited tax liability in another country.
Persons moving to or from Iceland or those only temporarily employed in Iceland are entitled to personal tax credit for each day they are resident in Iceland. Please note that persons from countries outside of the EEA and/or EFTA may need a work permit.
our banks in Norðurþing
Wages are generally paid into a bank account – workers therefore need to have opened a bank account with one of Iceland’s commercial banks. The requirements for opening a bank account may vary from bank to bank. One general requirement is that customers wishing to open a bank account must have an Icelandic national ID number and be legally domiciled in Iceland.
District/county magistrate- Sýslumaðurinn á Norðurlandi eystra
At the office you can find services for:
Driving license, Collector of Taxes, Forced auction, Public taxes, Notary Public, Social Services, Confiscation/repossession of ownership
Family matters: Legal seperation, legal divorce, Custody of Children, Visitation, Maintenance etc.
Útgarði 1, 640 Húsavík
Sími: 458 2600