Share with your friends

Iceland - Special considerations for short-term assignments

Special considerations for short-term assignments

Taxation of international executives


Related content

Residency rules
Payroll considerations
Taxable income
Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments?

Short stays abroad for leisure or holiday will not be considered as an interruption of the six-month period, whereas working abroad will.

Payroll considerations

Are there special payroll considerations for short-term assignments?

There are no special payroll considerations for short-term assignments.

Taxable income

What income will be taxed during short-term assignments?

The basic principle is that all income sourced in Iceland will be taxed in Iceland unless there is a relevant exemption in a double taxation convention.

Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in Iceland?

The assignee might have to get residence permit, working permit, and be registered at the directorate of labor.

© 2020 KPMG ehf, an Iceland Limited Liability Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Connect with us


Want to do business with KPMG?


loading image Request for proposal