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Do you live in Iceland and work in another Nordic country for a private sector employer?

This applies to you who are resident in Iceland and work for a private employer in another Nordic country. This information only applies to taxation of your income from employment.

See here if you have a public sector employer, who work as a seaman or airline personnel, who work on the Danish or Norwegian continental shelf, or who have income as an artist or sportsperson.               

Your employer is from the country of work

You must pay taxes on your salary in the country of work. But you must declare your foreign income in your Icelandic tax return. The income will not be taxed again in Iceland. However, the income must be included in the calculation of your Icelandic tax in order to determine the personal allowance and the tax rate applicable to any other Icelandic income.

Your employer is from a country other than the country of work

You must pay tax on your salary in the country of work when one of the following conditions is met:

If none of these conditions is met, your salary will only be liable to tax in Iceland.

If you pay taxes in the country of work, you must declare your foreign income in your Icelandic tax return. The income will not be taxed again in Iceland. However, the income must be included in the calculation of your Icelandic tax in order to determine the personal allowance and the tax rate applicable to any other Icelandic income.

Directors' fees

You must pay tax in Iceland if you receive remuneration for board work from a company in another Nordic country. The income may also be taxed in the country in which the company is resident. This applies regardless of where the work is actually carried out.

If you have pay tax in both countries, Iceland will include the tax you paid in another Nordic country in the calculation of your tax. The relief may not exceed the amount you paid in Icelandic tax on your income.

National Insurance scheme (social security) membership

There are specific rules to determine which country's National Insurance scheme (social security scheme) you will be a member of. Contact Tryggingastofnun ríkisins in Iceland (www.tr.is) or the social security authorities in the country in which you work for more information.

Select the other country here:   Denmark | Norway | Finland | Sweden
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