Iceland

Northern Europe

EuropeNon-EUSchengenEFTA

A Schengen-area country with a top-tier passport, widely spoken English and strong universities, but a high cost of living.

Overall score

Excellent · 95% data coverage

Language

Icelandic

Currency

ISK

Citizenship

7 years

Personal tax

Combined rates roughly 31%–46%

Cost of living

€2,500 / mo (single)

Rules change often. Confirm any immigration, tax or legal decision with a qualified professional.

Score breakdown

Access

17%

87Residence12%

74Citizenship and passport5%

Earning power

25%

80Salary and work12%

69Buying power13%

Business and wealth

20%

52Taxes7%

80Business8%

53Investment5%

Daily life

25%

88Quality of life18%

96Education7%

Rights and institutions

13%

94Freedom6%

95Rule of law7%

Pros

A top-tier passport
Widely spoken English
Strong universities

Cons

A high cost of living

Best for

Remote workersStudentsEnglish speakers

Score profile

Access

Residence

Citizenship

Passport

Earning power

Salary & work

Buying power

Cost of living

Economy

Business and wealth

Taxes

Personal tax

Corporate tax

Business

Investment

Wealth building

Daily life

Safety

Healthcare

Environment

100

Infrastructure

Education

HDI

Rights and institutions

Freedom

Rule of law

How the scores are calculated

Access

Residence

Openness to residents

Excellent

Migrant stock25.1% of population (2024)

Regulatory quality1.33 (−2.5 to 2.5) (2024)

Source: World Bank World Development Indicators

Main pathways

EmploymentStudyFamily reunificationBusiness or investment where eligible

Student	Rules depend on status and circumstances; verify the current requirements with the competent authority before acting.
Work	Rules depend on status and circumstances; verify the current requirements with the competent authority before acting.
Self-employed	Rules depend on status and circumstances; verify the current requirements with the competent authority before acting.
Permanent	Rules depend on status and circumstances; verify the current requirements with the competent authority before acting.

Citizenship

Citizenship accessibility

Good

Years required	7 years
Dual allowed	Yes
Language	Check the current naturalisation rules for the selected route
Residence	Typical headline route: 7 years; qualifying residence and absence rules apply
Notes	Rules depend on status and circumstances; verify the current requirements with the competent authority before acting.

Passport

Passport power

Excellent

188 / 198

Mobility

Global rank

Yes

Biometric

Visa-free141
On arrival38
eTA9
Visa required10

Placeholder estimates for 2024 to 2025. Check entry rules with each destination before travelling.

Earning power

Salary & work

Labour-market strength

Excellent

Output per worker$112,977 PPP (2024)

Unemployment3.6% (2025)

Participation74.9% of 15+ (2025)

Source: World Bank World Development Indicators

Mean monthly earnings of employees

Overall$5,692 · $3,815 PPP (2020)

Tech (IT & comms)$7,100 · $4,759 PPP (2020)

Source: ILOSTAT (International Labour Organization)

Freelance	Market access depends on language, sector, and work authorisation
Job market	Use current local vacancy and salary data for role-specific decisions.

Buying power

Purchasing power score

Good

GNI / person$83,250 PPP (2025)

Consumption / person$36,055 PPP (2023)

Price level130 (US = 100) (2025)

Income inequality26.8 Gini (2019)

Inflation4.1% / yr (2025)

Source: World Bank World Development Indicators

Cost of living

Affordability

Low

Price level130 (US = 100) (2025)

Source: World Bank World Development Indicators

Rent	Varies substantially by city and neighbourhood
Monthly	€2,500 / mo (single)
Cities	Reykjavík, Akureyri

Economy

Economic strength

Good

Output & income

GDP$38.6B (2025)

GDP / person$98,323 (2025)

GNI / person$83,250 PPP (2025)

GDP growth-1.0% / yr (2024)

Source: World Bank World Development Indicators

Stability & labour

Inflation4.1% / yr (2025)

Unemployment3.6% (2025)

Output per worker$112,977 PPP (2024)

Source: World Bank World Development Indicators

Sector composition

Agriculture3.7% of GDP (2025)

Industry20.1% of GDP (2025)

Services66.2% of GDP (2025)

Source: World Bank World Development Indicators

Main industries

Fishing & seafoodTourismAluminium smeltingGeothermal & hydro energyTechnology

Top exports

Fish & seafoodAluminiumTourism services

Type	High-income, resources- and tourism-led
Key sectors	Fisheries, Renewable-powered industry, Tourism
Summary	A small high-income island economy powered by renewables, leaning on fisheries, aluminium and tourism.
Currency	Icelandic krona

Business and wealth

Taxes

Tax friendliness

Moderate

Personal	Combined rates roughly 31%–46%
Corporate	20%
Capital gains	Treatment varies by asset, holding structure, residence, and treaty position
Dividends	Rates and withholding depend on residence and treaty eligibility
Exit tax	Check current domestic rules before changing tax residence
Foreign companies	Management, permanent-establishment, CFC, and reporting rules may apply

Personal tax

Low

Personal	Combined rates roughly 31%–46%
Freelance	Registration, immigration permission, tax, and social contributions may apply
Capital gains	Treatment varies by asset, holding structure, residence, and treaty position
Dividends	Rates and withholding depend on residence and treaty eligibility
Exit tax	Check current domestic rules before changing tax residence

Corporate tax

Limited

Corporate	20%
Capital gains	Treatment varies by asset, holding structure, residence, and treaty position
Dividends	Rates and withholding depend on residence and treaty eligibility
Foreign companies	Management, permanent-establishment, CFC, and reporting rules may apply

Business

Business friendliness

Excellent

Regulation & bureaucracy

Regulatory quality1.33 (−2.5 to 2.5) (2024)

Government effectiveness1.65 (−2.5 to 2.5) (2024)

Source: World Bank World Development Indicators

Operating rules

Foreign company	Generally possible, subject to sector, registration, tax, and substance rules
Local company	Available company forms and capital requirements vary
Freelance	Registration, immigration permission, tax, and social contributions may apply

Investment

Investing environment

Moderate

Private credit89% of GDP (2025)

Source: World Bank World Development Indicators

Capital gains	Treatment varies by asset, residence, holding period, and treaty position
Dividends	Data not available yet
ETFs & funds	Data not available yet
Wealth tax	Check current national and subnational rules
Brokers	Local and international availability varies by residency and compliance checks
Foreign access	Data not available yet
Tax-advantaged	Data not available yet

Wealth building

Wealth accumulation

Moderate

Salary & work

Excellent

Business

Excellent

Investment

Moderate

Tax friendliness

Moderate

Cost of living

Low

Daily life

Safety

Safety & stability

Excellent

Personal safety

Homicide rate1.3 per 100,000 (2023)

Source: World Bank World Development Indicators

Institutions & stability

Control of corruption1.83 (−2.5 to 2.5) (2024)

Political stability1.21 (−2.5 to 2.5) (2024)

Source: World Bank World Development Indicators

Check current government travel and security advice before relocating.

Healthcare

Healthcare score

Excellent

Outcomes

Life expectancy82.8 years (2024)

Under-5 mortality2.8 per 1,000 births (2024)

Source: World Bank World Development Indicators

Capacity & resourcing

Physicians4.37 per 1,000 (2023)

Hospital beds2.83 per 1,000 (2020)

Health spending$6,927 PPP / person (2024)

Source: World Bank World Development Indicators

System & costs

System	Public/private mix varies by eligibility and residence status
Insurance	Check residence-permit and local coverage requirements
Average cost	Depends on eligibility, income, insurer, and chosen coverage

Environment

Environment score

Excellent

100

Environmental pressure

PM2.5 exposure4.9 μg/m³ annually (2023)

Water stress0.4% (2022)

Source: World Bank World Development Indicators

Infrastructure

Infrastructure score

Excellent

Digital infrastructure

Internet use98.2% (2024)

Internet resilience78 / 100 (2026)

Fixed speed97 / 100 download index (2026)

Mobile speed74 / 100 download index (2026)

Sources: World Bank World Development Indicators · Internet Society Pulse Internet Resilience Index

Utilities

Electricity access100.0% (2023)

Grid losses2.9% of output (2024)

Source: World Bank World Development Indicators

Transport

Transport quality3.60 / 5 (2022)

Air connectivity96,329 departures / million people (2023)

Source: World Bank World Development Indicators

Education

Education score

Excellent

Attainment

Expected schooling18.9 years (2023)

Mean schooling13.9 years (2023)

Source: UNDP Human Development Report 2025

Participation & investment

Tertiary enrolment77% gross (2023)

Education spending7.3% of GDP (2022)

Source: World Bank World Development Indicators

Tuition	Low public registration fees; private institutions vary
Public university	Varies by institution, programme, and student nationality
Languages	Icelandic
Student work	Rules depend on status and circumstances; verify the current requirements with the competent authority before acting.

HDI

Human development score

Excellent

HDI0.972 (2023)

Source: UNDP Human Development Report 2025

Long & healthy life

Life expectancy82.7 years (2023)

Source: UNDP Human Development Report 2025

Knowledge

Expected schooling18.9 years (2023)

Mean schooling13.9 years (2023)

Source: UNDP Human Development Report 2025