Why Set Up Your Business in Iceland?
Located in the North Atlantic Ocean, Iceland is the westernmost country in the continent of Europe. Iceland does not share any land borders with any countries, but the Greenland Sea and the Atlantic Ocean. Home to a population of approximately 332,529 people, Iceland is the 108th largest nation in the world covers 103,000 square kilometres of land. The country has its location significance in economy and trade as it is located midway between Europe and North America.
An Overview of Iceland’s Economy
Iceland’s economy structure is a combination of a capitalist structure and free-market principles with an extensive welfare system. The fishing industry is one of the main pillars of the country’s economy, which contributes to the merchandise export earnings and employment opportunities. Another main pillar of Icelandic economic growth is the tourism sector, with the number of tourists is 4.5 times than the Icelandic population in 2016. In addition to this, Icelandic economy has diversified into manufacturing and service industries, particularly within the fields of tourism, software production, and biotechnology. Hence, Iceland has seen achievement in high growth as well as the low unemployment rate. As of now, the economic growth in Iceland remains strong due to the continued vibrant tourism activity and strong domestic demand.
Why Invest in Iceland?
Over the years, Iceland is very well known for its economic advancement, social stability, and technological innovation. Here are the reasons why investing in Iceland make the good option.
- Attractive Business Environment
The favourable business environment that includes low corporate tax, availability of land and green energy at competitive prices and efficiency within European legislative framework, are among the main factors that contribute to the attractiveness of the business environment in Iceland.
- Appealing Government Incentives
The pro-business government in Iceland has played its role in ensuring a fair, efficient, and competition-driven operating environment for companies within a market economy, and it welcomes foreign investment. In Iceland, new direct investment projects are eligible for an investment agreement that ensures generous regional incentives.
- Green Energy
As the only country in Western Europe with rich resources of hydroelectric and geothermal energy, Iceland is poised as the popular destination for foreign investment due to its competitively priced renewable energy. In fact, Iceland offers long-term energy contracts, as well as enabling companies to minimize their carbon footprint and reduce cost.
- Low Corporate Tax
Icelandic government imposes low corporate income tax of 20%. The corporate tax rate in Iceland averaged 23.36 percent from 1993 until 2017 and is said to be one of the lowest in Europe (and among the OECD member countries)
In a nutshell, Iceland’s high quality of life, quick growing economy, stable politic and green competitively priced energy are the major factors that drive the economic growth. The country has seen development through the centuries depending heavily on foreign trade as well as doing business with foreigners. It is a nation that welcomes all foreign investors to venture into the country, and it is definitely one of the ideal gateways to traipse the EU markets.