Dmitri Mihhailov
Managing Partner
Founder of Prifinance. 15+ years structuring international companies, banking and licensing for founders worldwide.
Register a company in Iceland
- green power at Europe’s northern edge.Company registration in Iceland gives you a remotely established ehf. with 20% corporate tax, EEA single-market access without EU membership and the cheapest fully renewable power in Europe - one reason data centres continue to choose the country. The trade-offs are equally clear: a domestic market of around 400,000 people, exposure to the Icelandic króna and an EEA residency rule for company management that needs to be addressed.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
6,000+
companies servedcompanies served
Updated
Iceland · at a glance
Legal formehf. · private limited
Time to set up1-2 weeks
Corporate tax20%
Market accessEEA - single market
Minimum capitalISK 500,000 ≈ €3,300
Remote setupYes - by POA
4.7
★★★★★
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Iceland in brief
One hundred percent renewable - with Nordic-level costs.
Iceland runs almost entirely on geothermal and hydro power, combining low-cost, firmly renewable electricity with a naturally cold climate. That combination first attracted aluminium smelters and later data centres and other compute-heavy operations that need clean megawatts at predictable prices. Around it sits a Nordic institutional framework: EEA membership with single-market access without EU membership, Schengen, high governance standards and a 20% corporate tax rate. An ehf. can be registered through RSK in one to two weeks with ISK 500,000 of capital.
The main limitation is scale. The domestic market is around 400,000 people, so founders typically open a company in Iceland for energy-intensive projects, tourism, exports or international services rather than local demand. The króna is a small floating currency, and although capital controls ended in 2017, treasury planning still matters. The managing director and a majority of the board must reside in the EEA, which non-EEA founders address with our support or an exemption. Salaries and professional services remain expensive by Nordic standards, but for green compute, energy-intensive industry and businesses seeking an EEA base between Europe and North America, Iceland remains a distinctive option.
Packages & pricing
Company registration in Iceland - cost and packages.
01 - EHF. · EINKAHLUTAFÉLAG
Company
from€2,900EUR · all-in
Remote registration of an Icelandic ehf. includes founding documents, RSK filing, tax and VAT registration and the first year of the registered address.
✓Company name check and founding documents✓RSK company-register filing - fees included✓Board-residency solution included✓Registered address in Reykjavík - first year✓Tax and VAT (VSK) registration handled✓Free pre-incorporation consultation
Optional add-ons: EEA board support - scoped per case · accounting - from €300/month · annual renewal - from €2,200/year.
Start with Company →02 - EHF. · EINKAHLUTAFÉLAG
Most popularCompany + Bank Account
from€4,900EUR · all-in
A working ehf. with an Icelandic bank account - ISK and EUR balances, cards and online banking through one of the country’s three main banks.
✓Everything in Company✓Account with Landsbankinn, Íslandsbanki or Arion✓Account application and KYC file preparation✓Introduction to suitable institutions✓Compliance onboarding support✓Dedicated account manager
Start with Banking →These are starting prices; the final quote is confirmed before work begins. Register fees and translations are itemised separately, while the share capital remains company money.
What you can do
Popular uses for an Icelandic company.
An ehf. can conduct almost any lawful business. Financial services require FME authorisation through the Central Bank, while energy-intensive projects depend on contracts with Landsvirkjun and the national grid. We scope both.
Data centres & compute
AI, HPC and blockchain workloads powered by renewable electricity and supported by natural cooling.
Energy-intensive industry
From aluminium production to hydrogen pilots, where long-term power pricing directly shapes project economics.
Tourism & hospitality
A market serving more than 2 million visitors a year against a population of around 400,000.
Seafood & marine tech
One of the world’s best-managed fisheries combined with a specialised technology ecosystem.
IT & services export
EEA-based invoicing with Nordic credibility and an English-fluent workforce.
Financial serviceslicensed
Payment and investment firms operate under FME licensing.
Why Iceland
Key advantages of the jurisdiction.
✓
Cheapest green power
A 100% renewable energy base, long-term contracts and natural cooling create favourable economics for compute-heavy projects.
✓
EEA without EU membership
Full single-market access for goods, services and capital - without EU membership.
✓
20% corporate tax
A straightforward Nordic corporate rate with no local profit surcharges.
✓
Nordic governance
Strong courts, registries and transparency support the jurisdiction’s reputation.
✓
Strategic location
Positioned between Europe and North America, with subsea cable connections in both directions.
✓
Energy-linked stability
Long-term electricity contracts can hedge one of the most important inputs for compute-intensive businesses.
How it compares
Iceland alongside the main Nordic alternatives.
Norway shares the EEA-but-not-EU model but with higher operating costs; Denmark and Finland offer full EU membership; Ireland competes for data centres primarily through tax rather than energy pricing. Iceland’s case is the combination of renewable power and EEA access. Figures current as of 2026.
| Country | Corporate tax | EU status | Signature edge |
|---|---|---|---|
| Iceland | 20% | EEA · Schengen | Green power · compute |
| Norway | 22% | EEA · Schengen | Oil economy scale |
| Denmark | 22% | EU · Schengen | Digital state · holdings |
| Finland | 20% | EU · euro | Lowest Nordic + euro |
| Ireland | 12.5% | EU | Tax-led data centres |
IcelandGreen power · compute
Corporate tax20%
EU statusEEA · Schengen
NorwayOil economy scale
Corporate tax22%
EU statusEEA · Schengen
DenmarkDigital state · holdings
Corporate tax22%
EU statusEU · Schengen
FinlandLowest Nordic + euro
Corporate tax20%
EU statusEU · euro
IrelandTax-led data centres
Corporate tax12.5%
EU statusEU
Requirements
What Icelandic law actually requires.
01
One shareholder - an individual or company of any nationality; 100% foreign ownership is permitted.
02
Board - EEA rule - the managing director and a majority of the board must reside in the EEA; exemptions exist, and we obtain them.
03
Capital - ISK 500,000 - approximately €3,300, paid at incorporation and retained as working company funds.
04
Registered address - an Icelandic address for the RSK register is mandatory and included in the package.
05
Tax & VSK registration - corporate tax and VAT registrations are completed with the relevant authorities.
06
Accounts & filings - annual financial statements are filed with RSK, with audit required above the applicable size thresholds.
How it works
From application to an operating company in weeks.
The process runs through our lawyers and the RSK register: you sign a power of attorney, and most companies are operating within two weeks.
01Same day
Free consultation
We confirm whether Iceland fits the project and flag Norway or Finland where either may be better suited.
022-4 days
KYC & documents
Passports, proof of address, drafted founding documents and an agreed board-residency solution.
032-4 days
Capital deposit
ISK 500,000 is deposited into the capital account.
043-7 days
RSK registration
The register issues the company’s kennitala, or identification number.
052-5 days
Tax & VSK
Corporate tax and VAT registrations are activated.
061-2 weeks
Banking
The company is introduced to the three main banks with support through onboarding.
Quick facts
Legal formehf.
Shareholders1+, any nationality
Corporate tax20%
VAT (VSK)24%
Standard timeline1-2 weeks
CapitalISK 500,000
Renewal & accountingFrom €2,200/year
For compute projects, the power contract is often the real critical path rather than the company itself, we start the energy conversation alongside the incorporation, not after it.
On the ground
On the ground in Iceland.
Prifinance - Iceland
Reykjavík
Reykjavík, Iceland
01
Nordic-desk specialists
Your setup is run by a team registering companies across the Nordics every month.
02
RSK & tax handled
Register, kennitala, VSK and annual filings. Done correctly, on time.
03
Board & energy solutions
EEA board support and introductions on the power side for compute projects.
04
Also in Tallinn, London, Dubai & more
A network of offices across Europe, the Gulf and the Americas. One team for your whole international structure.
We also have offices in
Tallinn
Estonia
Väike-Paala tn 1
Hong Kong
Hong Kong
5/F, Yau Lee Centre, 45 Hoi Yuen Road, Kwun Tong
Vilnius
Lithuania
Gedimino pr. 2
London
United Kingdom
7 Bell Yard
Prague
Czech Republic
Vlkova 532/8, Žižkov
Berlin
Germany
Rankestraße 26
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Türkiye
Perpa Ticaret Merkezi, A Blok
Dubai
UAE
33 Level, Al Saqr Business Tower
Toronto
Canada
1110 Finch Avenue West, suite 406
Singapore
Singapore
3 Church Street, #29-68 Samsung Hub
Bangkok
Thailand
Unit P01, Penthouse, VASU1, 1 Sukhumvit 25 Alley
Foshan
China
A-Tower, Yuneng Digital Plaza, 46 Lishui Avenue South
Almaty
Kazakhstan
Republic Square 13
Bishkek
Kyrgyzstan
32 Razzakov Street
Taxation 2026
Straightforward Nordic tax numbers.
Icelandic companies pay 20% corporate tax. Dividends to individuals are subject to the 22% capital-income rate, while EEA corporate shareholders can effectively obtain relief through the withholding-reclaim mechanism. Standard VAT is 24%, with a reduced 11% rate, while payroll costs combine Nordic-level salaries with moderate employer contributions.
Corporate tax - 20%
Flat and without municipal profit surcharges.
Dividends - 22%
Capital-income rate for individuals; EEA corporate shareholders can obtain relief through reclaim.
VAT - 24% / 11%
Standard and reduced rates; exports are zero-rated. Data-centre services largely outside.
Payroll
Nordic salaries combined with moderate employer contributions.
Levies in 2026
Corporate income tax20%
Dividends (individuals)22%
VAT (VSK)24% / 11%
Market accessEEA - single market
CurrencyISK - floating
Renewal & accountingFrom €2,200/year
Owners remain responsible for personal taxation in their own country of residence, while ISK treasury planning should be built in from the beginning for businesses invoicing in euros or dollars.
Your team
The specialists who'll handle your case.
Eugeniu Bevziuc
International Business Consultant
Guides clients from the first consultation to a working setup - companies, accounts and substance in 60+ jurisdictions.
Alex Danila
Corporate Services Specialist
Handles incorporation paperwork, KYC and bank introductions so your Icelandic company launches without delays.
Follow Prifinance
Active across our channels.
Watch: opening a company in Iceland with Prifinance
The island where green megawatts meet the single market - company, board, bank and power in one project. Full support, start to finish.
Talk to a specialist →FAQ
Common questions about Iceland.
Can I open an Icelandic company without visiting?+
Yes. With an apostilled power of attorney, the company can be filed with RSK, obtain its kennitala and activate tax and VSK remotely. Banking is more relationship-driven: one meeting is common, although video onboarding is sometimes accepted.
How much does it cost?+
Turnkey registration starts from €2,900, including register fees and the first year of the registered address. Packages with a bank account start from €4,900. The ISK 500,000 capital remains company money. Renewal with accounting starts from €2,200 per year.
What taxes will the company pay?+
Corporate tax is 20%, while dividends to individuals are taxed at 22%. EEA corporate shareholders can use the withholding-reclaim mechanism. VAT is 24%, with a reduced 11% band. There are no municipal surcharges on corporate profits.
What does EEA membership actually provide?+
EEA membership gives access to the single market and the free movement of goods, services, capital and people, together with Schengen travel and recognition of many EU standards. It does not include the EU customs union or agricultural regimes, which matters for physical goods. For many service and digital businesses, market access is broad.
What is the board residency rule?+
The managing director and a majority of board members must reside in the EEA. Non-EEA founders solve it with an EEA-resident director (ours available) or, in qualifying cases, an exemption from the ministry. We settle this on day one so the registration never stalls on it.
Why do data centres choose Iceland?+
The core advantages are fully renewable electricity, competitive long-term power contracts, natural cooling for much of the year and EEA legal status combined with subsea fibre to Europe and North America. For AI, HPC and blockchain workloads, the operating math often beats continental sites - and the power contract, not the company, is the critical path we start first.
How is the króna to work with?+
ISK is a small floating currency. Capital controls introduced after 2008 ended in 2017, but companies earning in euros or dollars should still plan treasury exposure deliberately. Icelandic banks offer multi-currency accounts, and some energy contracts can be denominated in dollars.
How is banking?+
Landsbankinn, Íslandsbanki and Arion are concentrated, conservative institutions with detailed KYC for foreign-owned companies. Concentrated and solid: Landsbankinn, Íslandsbanki and Arion, rebuilt post-2008 into conservative, well-capitalised institutions. KYC on foreign-owned companies is thorough and relationship-driven. We prepare the file, introduce you properly, and multi-currency accounts follow.
Iceland or Norway?+
Both offer the EEA-without-EU model and Nordic governance. Norway brings a much larger economy and oil-services demand at 22% corporate tax and higher operating costs. Iceland offers cheaper renewable power, a 20% rate and a faster registry, making it more relevant to compute and energy-intensive projects.
How long does it take?+
Plan on one to two weeks: several days for documents and the board solution, less than a week for RSK registration, followed by tax and VSK activation. Banking usually adds another one to two weeks. For data-centre projects, site and energy negotiations run in parallel and often determine the real project timeline.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
“I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license…”
Google
“Opening an account with Prifinance in a Swiss bank was such an easy and quick process that I was shocked. It all started with the first call, where I received detailed guidance on the required documents and the entire procedure.One of the key highlights was their attention to detail. As someone who usually gets tangled up in paperwork, I was pleasantly surprised when they sent me all the documents and…”
Google
“I recently had the pleasure of working with Boris.. and I must say, it was a fantastic experience. Boris went above and beyond to assist me with my residency needs. His professionalism, knowledge, and dedication truly stood out. I highly recommend working with Boris and the team!”
Google
More from Prifinance
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Free consultation
Start your Icelandic company today.
A few lines about your project are enough. Within one business day you get a recommendation (ehf. or another flag), a timeline and a fixed quote.
✓No obligation; the first consultation is free✓A clear recommendation, not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU speaking team