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

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

Definition of "public sector employer"

You are deemed to have a public sector employer when you are employed by the central government, regional or municipal authorities or a public law institution, or an equivalent administrative authority in the other Nordic countries. State universities and university colleges in the Nordic countries except Finland are deemed to be public sector employers. The Finnish universities are deemed to be private employers. Companies owned by the state or a municipality etc. are not regarded as public sector employers. Nor will the state, municipality etc. be regarded as a public sector employer if the business in question is a commercial undertaking.

If you do not have a public sector employer, you will be taxed according to the rules described in "Do you live in another Nordic country and work in Iceland for a private sector employer?

Icelandic public employer

If you work in Iceland for a public employer, you normally pay tax in Iceland. If the work is performed, all or in part, in the country of residence, you are normally taxed on this part of the salary in the country of residence.

Public employer domiciled in another Nordic country

If you work in Iceland for a public employer domiciled in another Nordic country, your salary will normally be taxed in the country in which the employer is domiciled.

You are not liable to pay tax on your salary in Iceland and you are not required to submit an Icelandic tax return.

Taxation in Iceland

Limited tax liability
You are subject to limited tax liability in Iceland when you work in Iceland for an Icelandic public employer, while being resident in another country. Your earned income from the Icelandic employer is taxed in Iceland when the work has been done there. See the section "Are you resident in another Nordic country and do you work in Iceland for a private employer?".

Taxation in the country of residence
You continue to be subject to full tax liability in your country of residence, which means that you are also liable to pay tax there.

You are required to submit a tax return in your country of residence. If you are taxed in both Iceland and your country of residence, the country of residence must take into account that the amount has been taxed in Iceland.

See the section "Limited tax liability".

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