Setting Up a Business in the Faroe Islands

An in-depth guide for foreign entrepreneurs and companies looking to enter the Faroese market — a self-governing Danish territory with full fiscal autonomy, outside both the EU and the EEA, where the tax and investment rules genuinely differ from mainland Denmark.
This guide covers legal structures (Sp/f, minimum share capital, no nationality restrictions), business taxation — including an 18% corporate rate set independently of Danish law, no capital gains tax, and a special tonnage tax regime for maritime shipping — company formation, the cost of labor in a genuinely small workforce, and immigration routes for executives, investors, and entrepreneurs. Includes a dedicated chapter weighing the Faroe Islands’ real advantages (no automatic foreign investment screening, an actively courted tech, renewable energy, and aquaculture-modernization scene) against its real restrictions (bilateral rather than automatic single-market access, government permits for real estate, and a sharp legal distinction between courted aquaculture and protected fishing), plus a genuinely distinctive immigration note: unlike anywhere else in this collection, even EU citizens need a work and residence permit to settle in the Faroe Islands. An operational checklist and useful contacts round out the guide.
Available in English.