Setting Up a Business in Iceland

An in-depth guide for foreign entrepreneurs and companies looking to enter the Icelandic market — energy-independent, EEA-connected, and increasingly positioned as a Nordic data center hub, but with real, sector-specific restrictions on foreign ownership.
This guide covers legal structures (ehf, minimum share capital, board residency rules with an automatic OECD-national exemption), business taxation — including the current 20% corporate rate, correcting an outdated 15% figure still circulating online — company formation, the cost of labor, and immigration routes for executives, investors, and entrepreneurs. Includes a dedicated chapter weighing Iceland’s genuine advantages against its real restrictions (fishing quotas, energy exploitation rights reserved for Icelandic citizens and companies, a 49% cap on aviation investment), covers the August 2026 referendum in which Icelanders rejected resuming EU accession talks, an operational checklist, and useful contacts.
Available in English.