Icelandic Business and Economy

Iceland - The cost-competitive edge

Iceland's operating environment is competitive with leading countries in the industrial world. With its low tax structure, high education levels and competitive costs for skilled labor, land and electricity Iceland is a strong candidate for businesses to short-list when seeking new locations for their international operations.

Iceland presents international businesses and investors with a wide range of opportunities for investments

Iceland offers an attractive fiscal and tax environment for international organizations.

Positive attitude and a new Act on Incentives for Initial Investments in Iceland offer investors a range of possibilities.

Iceland’s robust R&D, expertise in uniquely sustainable natural resources and our ideal location, bridging two of the world’s strongest markets, have convinced record numbers of foreign companies of the benefits of investing in Iceland.

"Doing Business in Iceland" is a detailed booklet written by the Invest in Iceland and major accounting firms in Iceland, with assistance from the Internal Revenue Directorate, the Ministry of Industry, Energy and Tourism, The Ministry of Economic Affairs, and other bodies

For more information on doing business in Iceland visit Invest in Iceland, Icelandic Chamber of Commerce, Statistics Iceland, Central Bank of Iceland, Business Iceland.

General Facts

Land area

103,000 square kilometres; 40,000 square miles

Population

320,000.

Education

Mandatory from 6 to 16 years of age

Schools for compulsory education: 192

Schools above compulsory education: 39

Universities and Colleges: 8

International Organizations

Iceland is a member of numerous international organizations, including the United Nations and its agencies, the European Economic Area, NATO, the Council of Europe, OECD, EFTA, WTO and the Nordic Council.

Transportation

Icelandair, Iceland Express and Delta link Iceland with over 30 gateways in Europe and North America. Flight time is 2-4 hours to Western Europe and 5-7 hours to North America. Domestic services operate to Iceland's main regional communities, with flight time of less than one hour. A number of carriers offer air cargo services to and from Iceland. Shipping of cargo is easy with regular liner sailings to and from major ports in Europe and the USA. Shipping takes 3-4 days to Europe and 7-8 days to North America.

Regulatory Constraints and Reliefs

As a member of the 18-nation European Economic Area (all EU states and three of the four EFTA states), Iceland implements the same basic liberal business philosophy as the European Union. Except in a few limited areas, all EU commercial legislation and directives take effect in Iceland. Consequently, Iceland makes an ideal springboard for tariff-free access to the major EU market area, as well as a fully competitive location for EU companies to operate.

Exchange Controls: No restrictions are imposed in Iceland on buying or selling of foreign exchange.

Foreign Ownership of Business: In principle, foreign ownership of business is unrestricted. However, some limitations apply to specific sectors, namely fishing, primary fish processing, energy production and aviation.

A wide range of portfolio investment options are available through licensed securities trading companies.

Official Attitude and Incentives

Iceland has systematically made its business environment increasingly attractive for investment and location, among other things with the series of tax cuts which now give Iceland one of the lowest levels of corporate income tax in Europe.

Advantages offered by Iceland for industrial investors include the most competitive electricity prices in Europe at 2-3 US cents/kWh for large industrial users, depending upon delivery terms, and industrial steam at 6 barg or USD 3 per metric tonne. Industrial sites with good natural harbours, for small and large ventures, are available in many parts of the country, and many local authorities have designed development strategies and scenarios which provide for new investments. Highly skilled labour is available, including experts in software and a wide range of research fields.

Special incentives are granted for film and TV production in Iceland, whereby 12% of total costs are refundable. Production cost incurred in other EEA countries is also refundable within certain limits.

The Icelandic Tax System

The Icelandic tax system is relatively simple and effective. In the last few years the emphasis has been to simplify it further, reduce tax rates, broaden the tax base and conclude more bilateral taxation agreements, which will increase the competitiveness of Icelandic corporations and attract foreign investors.

Financial Reporting and Audit Requirements in Iceland

Every company resident and operating in Iceland must submit annual accounts that comply with statutory accounting rules and disclosures, and reflect a true and fair view of the company’s assets, liabilities, results and financial position. Presentation is modelled upon standard EU requirements. The requirement of adjustments being made to revalue assets and liabilities on the principles of inflationary accounting was abolished in 2001.

Companies above a certain size which are publicly quoted and have subsidiaries are required to prepare consolidated group accounts. Tax returns are filed with local tax authorities.

Corporations registered in Iceland, with the main part of their income from foreign sources, can apply to keep their books of accounts and records in a foreign currency.

Limited liability companies registered on an official financial market are allowed to issue their share capital in a foreign currency. Other limited liability companies with the main part of their income from foreign sources will be able to issue their share capital in a foreign currency provided that certain requirements are met.

_{Source: "Doing Business in Iceland 2nd. ed."}_{Invest in Iceland Agency}_.

Overseas Business Services (OBS)

The Overseas Business Services (OBS) was established in 1997 as part of the Icelandic Foreign Service. Its main task is to coordinate the work of trade counsellors in Icelandic Embassies around the world. It aims to meet demands of Icelandic firms concerning business opportunities abroad.

Supporting the foreign expansion of Icelandic companies

The OBS works with Icelandic business organizations, including the Trade Council of Iceland. The OBS works at strengthening the competitive position of Icelandic companies on international markets by providing specialised commercial services in Icelandic embassies.

OBS advisers can open doors for companies in the relevant regions, inter alia by assisting them to overcome difficult culture and language problems in different markets.

Specialized trade counsellors are posted in six embassies abroad, i.e. in the USA, Great Britain, France, China, Russia and Germany. Additionally, core trade services are provided in the embassies in Belgium, Finland, Norway, Denmark and Sweden.

Services provided by the OBS

Information

Tariffs and dues
Rules of origin
Establishing a business in North America
Contact and communication with American authorities
Information about technical trade barriers
Market information from public sources

Consulting

Partner search
PR and events
Establishing a business in North America
Investments in North America
Trade delegations

Special services

Listing of companies and business contacts
Follow-up
Business-watch

Contact info

For more information contact:

Hlynur Guðjónsson, Trade Commissioner, [email protected]

Svanhvít Aðalsteinsdóttir, Project Manager, [email protected]

Icelandic American Chamber of Commerce

The Icelandic American Chamber of Commerce (IACC) is a membership organization founded in New York in 1986. The chamber promotes the development of business and trade between the United States and Iceland through membership networking events, business conferences and other occasions in which leaders of the business and government participate. IACC´s day to day operations are managed by the Iceland trade office at the Consulate General of Iceland in New York. The Icelandic American Chamber of Commerce maintains a close relationship with the Chamber of Commerce in Iceland and AMÍS (American-Icelandic Chamber of Commerce in Iceland).

Report of activities 2015-2016

The IACC Board of Directors 2016-2017

Chairman of the Board

Jón Sigurðsson, President and Chief Executive Officer, Össur

1st Vice Chairman

Thor Thors Jr.

2nd Vice Chairman

Birkir Hólm Guðnason, Chief Executive Officer, Icelandair,

Secretary

Siggi Hilmarsson, Founder and Chief Executive Officer, Siggi’s Dairy

Treasurer

Birna Anna Björnsdóttir, Founding Partner, Suðvestur

Board of Directors

Audrey Nizen – Bloomingdale's

Álfheiður H. Sæmundssen, Vice President, Capitol Acquisition

Árni Magnússon, Mannvit

Edward Christian – Saga Communication / Consul, Detroit

Einar Gústafsson – Bakkavör

Eric Nelson – Nordic Heritage Museum

Erla Skúladóttir – Morning Moon Films

Gauti Eggertsson – Brown University

Gerhard Olsen – Merrill Lynch

Gústi Sigurðsson – Citibank

Gréta Ólafsdóttir – Bless Bless Productions

Gunnar Birgisson – FPL Energy

Gylfi Sigfússon – Eimskip

Hanes Humes - Greylock Capital

Henry Demone – High Liner Foods

Jeff Monroe – Verne Global

John Hofteig - Consultant

Jón Steinsson – Columbia University

Joni Sighvatssson – Palomar Pictures

Kjartan Örn Ólafsson – Volta Labs Venture Development

Kristján Ólafsson – Icelandic Glacial

Kristján Tómas Ragnarsson – Mt. Sinaii School of Medicine

Lucy Baney – Access Technologies Group

Magnús Bjarnason – Kvika Bank

Magnús Gústafsson – Atlantika

Magnús Torfason – Harvard Business School

Margrét Harðardóttir – Lateral Investment Management

Marteinn Jónasson – Oddi Printing

Mica McCutchen Mosbacher - Honorary Consul General, Houston, Windward Interests, LLC

Mike Bless – Century Aluminium

Ólafur Jóhann Ólafsson – Time Warner

Pétur Óskarsson – Icelandair Group

Regína María Árnadóttir – Rourke Studio LLC

Sigríður Benediktsdóttir – Yale University

Stefan Guðjohnsen – Globe Scope

Tamara Boorstein – PR Consultant

Torfi Frans Ólafsson - CCP hf

Þorsteinn Egilsson – Icelandair

Úlfur Sigmundsson – Ljósbrá Investments

Ævar Agnarsson

General Manager: Hlynur Gudjonsson, [email protected]

Financial Officer: Bergþóra Laxdal, [email protected]

Icelandic Companies Doing Business in North America and Around the World

Here you can find information about over 300 Icelandic companies in various industries such as food and beverage, design, clothing, aluminum, fisheries, green technology, health technology, bio tech, information technology, construction, tourism etc.

We recommend using the pdf file on smartphones and tablet.

2017 Icelandic Companies List (excel)

2017 Icelandic Companies List (pdf)