A project in Iceland?
Iceland isn't yet part of our established network of local contacts. We assess every project case by case, though, and can bring in a trusted local partner (lawyer, accountant) if needed to create and direct your structure.
The path to creating a ehf in Iceland, step by step
These timelines assume a complete file (ID documents, supporting evidence, governance decisions made): an incomplete file is the single most common cause of delay, ahead of the administrative timelines themselves. Once the file is genuinely complete, expect generally 10 to 12 business days for the legal process itself.
Minimum share capital: ISK 500,000.
Project scoping & complete file
Gathering ID documents, mandate, governance decisions and choice of bank — the essential groundwork for the legal timelines below to actually start running.
Raising the capital
Minimum capital of ISK 500,000, fully paid up at incorporation, deposited into an account opened in the company's name.
Drafting the articles
No systematic notarial requirement; the articles and incorporation form are filed with the companies registry (Fyrirtækjaskrá).
Registry processing
Standard processing time once the file is complete and payment received.
Fully incorporated company
The company cannot acquire rights or obligations until it is registered.
Safety margin — opening the bank account
On top of the legal timelines above, allow one week of banking margin: KYC checks, extra documentation or a branch appointment can extend account opening, particularly for a non-resident director.
VAT
| Taux | ||
|---|---|---|
| Standard rate | 24% | |
| Reduced rates | 11% | accommodation, transport, catering, books, food products |
Corporate tax
20%.
Is a visa required?
Non-Schengen nationals need a visa to enter the country, valid for a maximum of 180 days; specific rules on a director's residence permit could not be precisely confirmed — we check this case by case.
Information provided for guidance (July 2026), subject to change depending on local regulation, the bank and the relevant authority. We confirm the precise timeline with you during the initial assessment of your project.
Opening a bank account
Is presence in Iceland required?
No systematic physical presence is required for filing; most of the process is handled through documents with the companies registry.
Observed timeframe to open the account
2 to 4 weeks: the account must receive the minimum capital before registration, with sometimes enhanced KYC checks for a foreign shareholder.
Share capital deposit
Minimum share capital: ISK 500,000.
Ultimate Beneficial Owner (UBO) register
Every director or shareholder must be declared as an Ultimate Beneficial Owner (UBO) in the national register — a requirement stemming from EU anti-money-laundering directives (or equivalent standards outside the EU). Bank scrutiny is heightened in two situations common among international clients: when a shareholder or director is a US citizen or US tax resident (FATCA then imposes extra reporting obligations on the bank, which can slow down or complicate account opening); and when a shareholder is based in an African country rated higher-risk by the FATF (extra proof of the origin of funds, longer KYC validation times). We anticipate this with you from the initial assessment if your structure involves such profiles.
Information provided for guidance (July 2026), subject to change depending on local regulation. We confirm the applicable detail with you during the initial assessment of your project.
Selling on-site and clearing customs
Securing a premises or retail location
Commercial lease and registering the address with the companies registry (Fyrirtækjaskrá).
On-site sales & till
A cash register compliant with the tax authority's (Skatturinn) standards is required for all retail sales.
Cash register suppliers
- SumUp
- Zettle (PayPal)
- Shopify POS
- Lightspeed
- Valitor (acquéreur local)
Payment providers for small businesses
- Stripe
- PayPal Business
- Valitor
- Adyen
- Rapyd
Indicative, non-exhaustive list of examples of solutions present on the local market — availability and terms change quickly; we help you select the best-suited offer during the assessment of your project.
Customs & ATA carnet
To exhibit or sell equipment at a trade fair, the ATA carnet allows temporary import of goods — professional equipment, samples, stand fittings — without advancing customs duties or import VAT, provided they are re-exported within the allotted period (generally 12 months, sometimes 6 months for fair equipment). The carnet is issued by the chamber of commerce in the country of departure and recognised across the international network of ATA Convention countries, a network that covers Iceland.
Importing products from outside the European Union
To import goods from a non-EU country (China, the US, etc.), an EORI number is essential for any customs procedure. Customs duties depend on the tariff code (combined nomenclature) and the product's origin; import VAT is then due at the rate applicable in the destination country, generally recoverable if the business is VAT-registered. Depending on trade agreements in force, some products benefit from reduced or zero duties on presentation of a certificate of origin. The competent authority for these procedures is Icelandic Customs (Skatturinn — Tollur).
On-site consumer rules
A sale concluded in person at a stand during a trade fair that is not your usual place of business is generally classed as an "off-premises" contract under the EU Consumer Rights Directive (2011/83/EU): the customer then has a 14-day right of withdrawal, subject to exceptions (personalised, perishable or sealed goods). This principle, harmonised across the EU/EEA, applies in Iceland — we check the local details with you based on your sales activity.
Information provided for guidance (July 2026), subject to change depending on local regulation. We confirm the applicable detail with you during the initial assessment of your project.