Tax deductions on tax returns for international experts who are employed in Iceland due to their expertise or experience are now open for application.
Applications for tax deductions for international experts employed in Iceland are now open. International experts in this context are employees having knowledge and/or expertise not available or available on a limited scale in Iceland.
Experts qualifying are taxed on 75% of their income for the first three years of employment. A prerequisite is that they have not had permanent residence in Iceland for the 5 preceding years according to Registers Iceland (Þjóðskrá Íslands). The law is effective from 1st of January 2017.
The Ministry of Finance and Economic Affairs has published a directive nr. 1202/2016 where more detailed information can be found. In the 3rd paragraph, the directive states which documents must be submitted in order for the application to be processed.
Applications should be marked “Frádráttur frá tekjum erlendra starfsmanna”, and sent to Rannís, Borgartún 30, 105 Reykjavík. Applications will normally be processed within 3 weeks after all relevant documents are received.