Why Savvy Investors Are Doing Business in Iceland
Iceland is an extremely beautiful country with a multitude of diverse landscapes, and it is often thought of as a vacation destination. But Iceland has much more to offer than its scenic beauty. Iceland has been renowned for its economic advancements, stability and technological innovations. It has consistently been regarded as one of the most distinguished societies on the planet. It has become an ideal location for investors or those looking to set up their company in Iceland. Business in Iceland is not often discussed, but it is a hidden gem for avid investors and businesspeople.
Iceland’s quality of life, modernity, expanding economy and politically stable government make it a solid investment for and business owner. Due to its internationally competitive reputation, Iceland is the perfect place to set up a company. This young, emerging nation if full of educated, multilingual people who enjoy the cultural scene. Not to mention the flexible job market filled with people who can adopt new technologies and drive innovation. There are a number of reasons to do business in Iceland, here are a few:
- Ease of Doing Business – Doing business in Iceland is exorbitantly easy when compared to many other countries. Iceland’s small society allows for access to officials making it a fair, yet competition driven environment for companies. This makes Iceland’s economy an attractive opportunity for foreign investors. Starting a company in Iceland takes a short amount of time and it actually ranks 14th out of 144 countries.
- Highly Educated Work Force – The work force in Iceland is highly educated and much more experienced in knowledge intensive markets. Since Iceland is a leader in technological innovation many of the jobs require a higher education level and almost 40% of the primary working population has some form of higher education.
- Green Energy – Iceland is one of the only countries left in Europe with a significant amount of renewable energy that can still be harnessed. This means that green energy is still competitively priced and will work in favor of your business in Iceland. In addition, Iceland offers long term contracts to companies that allow them to further reduce costs and minimize their carbon footprint. With this amount of untapped resources, Iceland is the perfect location for setting up a company.
- Free Trade with China – China has become a fast-growing market with a number of products or services most businesses need. The free trade agreement benefits Businesses in Iceland as well as Chinese investors looking to import/export goods to/from Iceland.
- Low Tax Rates – Iceland has one of the lowest tax rates in Europe. It’s 20% corporate income tax makes it one of the best locations for businesses in Iceland to realize a large percentage of commercial profit.
- Government Incentives – Iceland’s government makes business a priority and aims to create favorable business environments. Some of the many incentives include low corporate tax, land, green energy, and effective legislation. Depending on the type of business you are looking to start, there are a number of incentive opportunities. The EU allows for incentives for SMEs, R&D and environmental protection among other things. Foreign companies and workers also receive additional tax incentives not found in many other places.
- Optimal Location – Iceland retains an amazing location as it is perched right between North America and Europe. Although it is an island, it’s extensive land and air links keep the population supplied. Travel to Europe, the United States and Canada is less than 6 hours in most cases. Iceland’s innovative freight shipping lines make importing and exporting extremely easy and accessible.
- Infrastructure – Iceland has been ranked number one for infrastructure out of 144 countries and there’s a reason why. It is among the top countries in the information and technology communications sector as it has extensive connectivity and advanced communications technology. It has also been top ranked when it comes to utilizing existing technologies to increase productivity of businesses. The roads help to connect the main population of the country, te air connection helps to connect residents with the rest of the world and the freight ports facilitate imports and exports.
When choosing to establish a business in Iceland, there are a variety of forms in which they may operate. Most foreigners tend to establish a branch of a limited company; however, it is possible to establish an independent company. Or purchase stocks in Icelandic companies. Icelandic company law aligns with EU company law. In order to establish any company in Iceland, it is necessary to apply to the register of firms with the district commissioner regarding individual firms, partnerships, limited partnerships and European Economic interest groupings. After registration an identity number from the business register at the director of internal revenue must be obtained as well as a value-added-tax number.
As an investor setting up your company in Iceland, it can be a daunting task to deal with registration, recruitment and all other aspects related to starting a business in Iceland. Swapp Agency is a well-established company that has extensive experience with helping companies get started in Iceland. They are known as one of the premier staffing agencies with high quality candidates perfect for your company. Their main goal is to ensure that your company successfully starts up with an experienced team. They connect Iceland to the rest of the world and allow companies to bypass the involved process of establishing their company in Iceland.
Setting up your company in Iceland has an endless amount of benefits including tax incentives, infrastructure, green energy, free trade, an educated work force and so much more. With the help of Swapp Agency your Iceland business will be thriving with access to payroll services, tech solutions and legal assistance. Swapp Agency provides all of these benefits in one place which allows you to focus on the expansion of your business rather than the exasperating everyday tasks.