Act on incentives for initial investments in Iceland
The ‘Incentives for Initial Investment in Iceland' bill is directed towards promoting initial investment in commercial operations, the competitiveness of Iceland and regional development by specifying what incentives are permitted in respect of new investments in Iceland and how they should be used.
Investment projects in Iceland need to meet requirements, such as being beneficial for the Icelandic economy and society, in terms of job creation, rural development, export and tax revenues and knowledge. However, approved investment projects will receive benefits in return, including derogations from taxes and charges. In addition, authorization to fix the rate of income tax, in line with the current rate of income tax, for 10 years can be granted, as well as exemption from customs and excise duties on importation or domestic purchase of construction materials, machinery and equipment for the building and operation of the investment project.