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🇮🇸 Retire in Iceland

Tax rates, cost of living, special programs, and top cities for international investors and retirees.

Tax system

worldwide

Cheapest city

Reykjavik ~$1,620/mo

Tax System Overview

Iceland taxes investment income at 22%. No wealth tax. Small country with high cost of living.

  • ✓No wealth tax

What Would You Pay?

Estimated annual tax on different levels of investment income (capital gains + dividends + interest):

Annual Investment IncomeEstimated TaxEffective Rate
$50,000$11,00022.0%
$100,000$22,00022.0%
$200,000$44,00022.0%

Assumes 60% capital gains, 25% dividends, 15% interest. Actual tax depends on your specific income mix.

Sources — Iceland tax data

Last verified 2026-04-14

Top Cities in Iceland

Reykjavik

$1,620/month

Tax Calculator

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Move & Save Simulator

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Tax rates and programs are subject to change. Information is current as of 2026. Always consult a qualified tax professional before making relocation decisions.