Iceland Wealth & Property Tax
Detailed wealth & property tax rates and rules for Iceland in 2026.
Wealth Tax
Iceland abolished its net wealth tax. A temporary wealth tax was imposed during the 2008-2014 financial crisis period but is no longer in effect.
Wealth Tax Rate
0%
Inheritance / Estate Tax
Iceland levies a flat 10% inheritance tax (erfda-fjárskattur) on estates exceeding ISK 1,500,000. Spouses and registered partners are generally exempt. The tax applies to the total estate value after deductions and exemptions.
Top Rate
10%
Property Tax
Icelandic municipalities levy property tax (fasteignagjald) ranging from 0.18% to 0.625% of the assessed property value. Residential properties are typically taxed at lower rates than commercial properties. A stamp duty of 0.8% applies to property transfers (1.6% for legal entities).
How Iceland Wealth Tax compares
Iceland does not tax net wealth. 191 of 203 countries TaxAtlas tracks take the same approach, which is useful context when weighing where to live, invest, or incorporate.
