15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the Central Bank's decision, including banking and payment rails.
Get an investment license in Iceland.
An EEA licence, not an EU one, with the same passport: the Central Bank of Iceland grants the starfsleyfi verðbréfafyrirtækis under lög nr. 115/2021 to a hlutafélag with its head office in Iceland (5. gr.), and 7. gr. 2. mgr. gives it six months from a complete application - a clock written into the statute. The honest part: IFD and IFR are not yet Icelandic law, the bill on varfærniskröfur til verðbréfafyrirtækja is listed for September 2026, and capital still sits in 14. gr. a of lög nr. 161/2002 - €50,000, or €1 million of professional indemnity insurance per claim, for a firm that holds no client assets. The application fee is ISK 1,320,000 under lög nr. 99/1999. Corporate tax is 20%. The home market is 396,500 people; the passport reaches the rest of the EEA.
Updated
A six-month clock in the statute, and a prudential regime still waiting for the IFD.
Iceland is in the EEA, not the EU, and its investment-firm law is the MiFID II transposition in lög nr. 115/2021 um markaði fyrir fjármálagerninga, last amended by lög 51/2026 from 1 July 2026. 5. gr. makes investment services and activities subject to a starfsleyfi and requires the applicant to be a hlutafélag with its head office in Iceland; 4. gr. 16. tölul. lists the services - móttaka og miðlun fyrirmæla, framkvæmd fyrirmæla, viðskipti fyrir eigin reikning, eignastýring, fjárfestingarráðgjöf, sölutrygging, umsjón með útboði and the operation of trading venues - with custody among the ancillary services. 7. gr. 2. mgr. is a real clock: the Financial Supervisory Authority's decision must be notified in writing no later than six months after a complete application. Fund managers are licensed separately - an AIF manager under lög nr. 45/2020 at €125,000, or €300,000 self-managed, and a UCITS management company under lög nr. 116/2021 at €125,000.
Capital is the honest part. The IFD and IFR have not been transposed: the Ministry of Finance and Economic Affairs' bill on varfærniskröfur til verðbréfafyrirtækja is listed for September 2026 in the 158th session. Until it passes, initial capital sits in 14. gr. a of lög nr. 161/2002 as amended by lög 38/2022: a firm not permitted to hold client money or instruments needs at least €50,000, or professional indemnity insurance of €1 million per claim and €1.5 million a year. The upper tiers for dealers and client-asset firms sit in the unamended paragraphs of 14. gr. a; we confirm them in writing. The fees are printed: an application fee of ISK 1,320,000 and an annual levy of 0.85% of total assets, at least ISK 2,756,000, under lög nr. 99/1999. The compensation fund pays ISK 1.7 million per claim, pegged to the euro at the 5 January 1999 rate. Corporate tax is 20%. We run the file from Reykjavík.
An EEA licence, not an EU one, with the same passport: the Central Bank's starfsleyfi under lög 115/2021 - six months from a complete file under 7. gr. 2. mgr., capital still under 14. gr. a of lög 161/2002 because the IFD bill is only listed for September 2026, fee ISK 1,320,000.
20% corporate tax, a 5.5% payroll levy for financial undertakings, TIF cover of ISK 1.7 million. A home market of 396,500 people. Filing in Icelandic. Built end to end from Reykjavík.
The verðbréfafyrirtæki - or the fund manager under lög 45/2020 or 116/2021.
Two Central Bank licences under three acts: the investment firm under lög 115/2021 with capital still under the pre-IFD 14. gr. a of lög 161/2002, and the fund manager under lög 45/2020 or 116/2021 at €125,000. Iceland has no MiFID art. 3 light regime. We fix the act before the file.
The lög 115/2021 investment firm - or the €125k fund manager.
The lög 115/2021 investment firm
Starfsleyfi under 5. gr. of lög nr. 115/2021 for the services of 4. gr. 16. tölul. - reception and transmission, execution, own-account dealing, portfolio management, advice, underwriting and placing, trading venues - with the stofnframlag that 8. gr. makes a licence condition and the amounts printed in 14. gr. a of lög 161/2002: €50,000 or €1 million of insurance per claim for a firm without client assets; the higher tiers confirmed before filing.
Starfsleyfi under 5. gr. of lög nr. 115/2021 for the services of 4. gr. 16. tölul. - reception and transmission, execution, own-account dealing, portfolio management, advice, underwriting and placing, trading venues - with the stofnframlag that 8. gr. makes a licence condition and the amounts printed in 14. gr. a of lög 161/2002: €50,000 or €1 million of insurance per claim for a firm without client assets; the higher tiers confirmed before filing.
- ✓4. gr. 16. tölul. services, custody among the ancillary services
- ✓Hlutafélag with its head office in Iceland (5. gr.)
- ✓€50,000 - or PII €1m per claim / €1.5m a year - no client assets (14. gr. a)
- ✓Higher tiers: pre-IFD paragraphs, confirmed in writing
- ✓Application fee ISK 1,320,000 (lög 99/1999, 7. gr.)
- ✓6 months from a complete application (7. gr. 2. mgr.)
The fund manager under lög 45/2020 or 116/2021
The AIF manager licence under 11. gr. of lög nr. 45/2020 at €125,000 external or €300,000 self-managed, or the UCITS management company under 4. gr. of lög nr. 116/2021 at €125,000 - each plus 0.02% of assets over €250 million capped at €10 million, with eignastýring, advice and custody of units as add-ons, and registration only below €100 million under 6. gr. of the AIFM act.
AIF manager under lög 45/2020 at €125,000 (€300,000 self-managed) or UCITS manager under lög 116/2021 at €125,000, plus 0.02% over €250m - registration only below €100m.
- ✓Lög 45/2020, 15. gr. - €125,000 external · €300,000 self-managed
- ✓Lög 116/2021, 12. gr. - €125,000 UCITS manager
- ✓+0.02% of AUM over €250m, cap €10m
- ✓Portfolio management, advice and custody of units as add-ons
- ✓AIFM 3 + 3 months (13. gr.) · UCITS 6 months (9. gr.)
- ✓Annual levy 0.028% of assets, min ISK 2,756,000
Costs and timelines are confirmed for your case before any work begins. The ISK 1,320,000 application fee and the 0.85% levy follow lög 99/1999 as amended by lög 51/2026; the capital tier for a firm holding client assets or dealing on own account is confirmed against the current text of lög 161/2002 before the file opens.
The passport without the union, and a statute that prints its clock.
Iceland sells the EEA passport from outside the EU, a six-month clock written into the statute and a fee you can read - with a prudential regime one bill behind Brussels.
MiFID II applies through the EEA Agreement, and the notification passport of arts 34-35 with it, by decision of the EEA Joint Committee - an Icelandic licence serves the rest of the EEA without an EU seat.The passport still applies.
7. gr. 2. mgr. of lög 115/2021 requires the decision in writing no later than six months after a complete application; the AIFM act gives three months plus three (13. gr. of lög 45/2020) and the UCITS act six (9. gr. of lög 116/2021).Six months, 7. gr. 2. mgr.
ISK 1,320,000 for the application under 7. gr. 2. mgr. 2. tölul. of lög 99/1999, then 0.85% of total assets a year, at least ISK 2,756,000 - amounts in the act, not in a quote.ISK 1,320,000.
14. gr. a of lög 161/2002 lets a firm that holds no client money or instruments start with €50,000, or with €1 million of professional indemnity insurance per claim and €1.5 million a year, or a mix - below the €75,000 the IFD will bring.Without client assets.
Hlutafélög pay 20% on Skatturinn's 2026 assessment; the 5.5% fjársýsluskattur on financial-sector payroll and the 0.145% levy on liabilities are the two sector lines to model beside it.Plus 5.5% on payroll.
IFD and IFR are not yet Icelandic law: the bill on varfærniskröfur til verðbréfafyrirtækja was first debated on 17 April 2026 and is listed for September 2026. Until it passes, capital follows the CRR-era text of lög 161/2002, the upper tiers are confirmed per structure, and the home market is 396,500 people. Budget for a file in Icelandic, on a regime about to change.Capital regime about to change.
How Iceland differs from other routes.
The honest comparison: the EEA passport from outside the union, with a printed fee and a pending IFD bill - against the other EEA outsider and two EU neighbours across the water.
| Feature | Iceland | Other jurisdictions |
|---|---|---|
| Regime | Lög 115/2021 · 5. gr. - Central Bank of Iceland | Vphl. 2007 Norway · Lov 1155/2021 Denmark |
| Capital | €50k or PII without client assets (14. gr. a lög 161/2002) · IFD pending | Norway €50k / €125k / €730k, IFD pending · Denmark €75k / €150k / €750k |
| Passport | EEA-wide via the EEA Agreement | Norway the same · Denmark, Ireland EU |
| Timeline | 6 months from a complete file (7. gr. 2. mgr.) · no stats | Norway 6 months · Ireland 245 days average 2025 |
| Country | License type | Taxation | Requirements |
|---|---|---|---|
Iceland | Verðbréfafyrirtæki - Central Bank | 20% CIT · 5.5% payroll levy | 14. gr. a €50k or PII, fee ISK 1.32m, IFD pending |
Norway | Verdipapirforetak - Finanstilsynet | VAT 25% · CIT confirmed per case | Vphl. § 9-39 €50k-€730k, IFD pending, no fee |
Denmark | Fondsmæglerselskab - Finanstilsynet | 22% CIT · 26% if § 17 A applies | § 18 €75k-€750k, A/S only, 6 months, 59 firms |
Ireland | Authorised investment firm - CBI | 12.5% trading · 15% large | IFD €75k-€750k, 245-day average 2025 |
Iceland
Norway
Denmark
IrelandRequirements for the Icelandic licence.Requirements for the licence.
The Central Bank's Financial Supervisory Authority reviews under lög 115/2021 and lög 161/2002, and the 7. gr. 2. mgr. clock starts only when the application is complete. The checklist below is what a passing file contains.
Reflects lög 115/2021, lög 161/2002 as amended by lög 38/2022 and lög 99/1999 as of 2026 - before the IFD bill listed for September 2026.Lög 115/2021 + 161/2002 + 99/1999, as of 2026.
From first call to the FME register.
Lög 115/2021, 45/2020 or 116/2021 decided, services fixed under 4. gr. 16. tölul., the 14. gr. a tier or insurance chosen in writing before drafting.115/2021, 45/2020 or 116/2021.
Icelandic hlutafélag, capital or PII in place, board and CEO ready for the 52. gr. assessment, holders for 12.-15. gr.Ready for 52. gr.
Business plan, organisation, policies and the ISK 1,320,000 fee - complete at filing, so the six-month clock actually starts.Complete, so the clock starts.
7. gr. 2. mgr.: six months from completeness, decided by the Fjármálaeftirlitsnefnd - no processing statistics are published.Six months statutory.
Register entry, TIF membership, EEA notifications - the rest of the EEA open.EEA open.
The Central Bank publishes no processing statistics and no licensee count - so the honest plan is the six-month statute plus the time it takes to make the file complete, on a capital regime one bill away from change.
Run from our Reykjavík office.

Hlutafélag with its head office in Iceland, the 14. gr. a capital or insurance in place - the 5. gr. ground closed before the file opens, and the tier re-checked against the IFD bill's progress.5. gr. closed.
Business plan, organisation under the FME's regluvarsla guidelines and the policies drafted in Icelandic - and defended through the question rounds until the 7. gr. 2. mgr. clock runs.To the FME guidelines.
Directors and the chief executive who pass 52. gr. and 52. gr. a of lög 161/2002 - sourced from Reykjavík's regulated-firm bench, with our London office a direct flight away.52. gr. and 52. gr. a.
TIF membership, EEA notifications under the EEA Agreement's version of arts 34-35, banking live - the rest of the EEA from one Icelandic base.The rest of the EEA.







Taxation of investment firms in Iceland.
A 20% corporate rate, two financial-sector lines and a supervision levy fixed in the act.
Hlutafélög and einkahlutafélög pay 20% tekjuskattur lögaðila on Skatturinn's 2026 assessment for income year 2025; partnerships pay 37.6%.Hlutafélög.
The 22% capital-income tax is also the withholding rate on dividends to non-residents, with treaty relief applied per shareholder.Treaty relief.
The financial activities tax on the salaries of financial undertakings runs at 5.5% - a payroll line a brokerage carries that a software company does not.Financial undertakings.
The sérstakur skattur á fjármálafyrirtæki on liabilities is 0.145%; whether it reaches a verðbréfafyrirtæki's balance sheet is confirmed per structure.On liabilities, if it applies.
0.85% of total assets a year for a verðbréfafyrirtæki, at least ISK 2,756,000, under 5. gr. of lög 99/1999; fund managers pay 0.028% with the same floor.Min ISK 2.76m.
The standard rate is 24% with an 11% reduced rate and financial services exempt; we confirm the exemption's reach for your service lines before the model is fixed.Finance exempt.
*Figures as of 2026 per Icelandic law and Skatturinn. Group and founder-level outcomes are modelled per structure.
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Builds the application itself: Icelandic hlutafélag, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed firm.
Active across our channels.
Launch your investment firm in Iceland with expert support.
Full-service assistance - from the Icelandic hlutafélag and the 7. gr. file to the Central Bank licence, board assessments, EEA passporting and ongoing compliance - run through our Reykjavík office.
Get a consultation →Is Iceland the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
The Icelandic investment licence, answered.
Which licence does an investment firm need in Iceland?+
The starfsleyfi verðbréfafyrirtækis under 5. gr. of lög nr. 115/2021 - the MiFID II licence for the services of 4. gr. 16. tölul.: reception and transmission, execution, own-account dealing, portfolio management, advice, underwriting, placing and trading venues. Fund managers are licensed separately under lög 45/2020 or lög 116/2021.
Does the passport apply outside the EU?+
Yes. Iceland is an EEA state, MiFID II applies through the EEA Agreement by decision of the EEA Joint Committee, and the notification passport of arts 34-35 applies with it - an Icelandic licence serves the rest of the EEA without an EU seat. The Icelandic notification articles and periods are confirmed before the passport is filed.
What capital is required?+
Until the IFD bill passes, 14. gr. a of lög 161/2002: at least €50,000, or professional indemnity insurance of €1 million per claim and €1.5 million a year, for a firm without client money or instruments; €25,000, or €500,000 and €750,000 of insurance, where the firm is also a registered insurance intermediary. Dealer and client-asset tiers are confirmed in writing.
Are IFD and IFR in force in Iceland?+
Not yet. The Ministry of Finance and Economic Affairs' bill on varfærniskröfur til verðbréfafyrirtækja - implementing Regulations 2019/2033 and 2019/2034 - was first debated on 17 April 2026 and is listed for September 2026 in the 158th session. Until then own funds follow the CRR-based rules of lög 161/2002, and a file written today is built to survive the change.
How long does the Central Bank take?+
Six months from a complete application under 7. gr. 2. mgr. of lög 115/2021, decided by the Fjármálaeftirlitsnefnd. An AIF manager gets three months plus up to three under 13. gr. of lög 45/2020; a UCITS manager six under 9. gr. of lög 116/2021. No processing statistics are published.
What does the licence cost?+
ISK 1,320,000 for the application under 7. gr. 2. mgr. 2. tölul. of lög 99/1999 - the same fee for securities firms and fund operators - then an annual eftirlitsgjald of 0.85% of total assets, never lower than ISK 2,756,000, for a verðbréfafyrirtæki; fund managers pay 0.028% with the same floor.
How is a client protected if the firm fails?+
The TIF verðbréfadeild under lög 98/1999 pays each claim in full up to ISK 1.7 million, the excess proportionally - an amount pegged to the euro at its buying rate on 5 January 1999, so roughly the €20,000 directive minimum. Members pay a total of ISK 20 million by 1 March whenever the fund's assets fall below ISK 100 million.
How are Icelandic investment firms taxed?+
20% corporate income tax for hlutafélög on Skatturinn's 2026 assessment, 22% on capital income and on dividends to non-residents before treaty relief, a 5.5% fjársýsluskattur on financial-sector payroll and a 0.145% levy on liabilities where it applies - plus the 0.85% supervision levy under lög 99/1999.
Iceland or Norway for a new firm?+
Both are EEA outsiders with the same passport, six-month clocks and pre-IFD capital tiers. Norway charges no application fee, covers NOK 200,000 per client and has a 5.6 million market; its official pages still print €730,000, €125,000 and €50,000. Iceland prints its fee, ISK 1,320,000, and its statute prints the clock. Oslo for the market; Reykjavík for the price list.
Why Prifinance for Iceland?+
A Reykjavík office with our London office a direct flight away, a file written in Icelandic to lög 115/2021 and the FME's regluvarsla guidelines, and the capital tier checked against the IFD bill's progress before filing. TIF membership and the EEA notifications run as part of launch.
Which licence?+
5. gr. lög 115/2021.
Passport?+
Yes - EEA Agreement.
Capital?+
€50k or PII, pre-IFD.
IFD in force?+
Not yet - September 2026 bill.
How long?+
Six months statutory.
Cost?+
ISK 1,320,000 + 0.85%.
Client protection?+
ISK 1.7m per claim.
Taxes?+
20% + 5.5% payroll.
Or Norway?+
Market vs price list.
Why you?+
Reykjavík office, Icelandic file.
Founders who wanted it done right.
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One message away from your Iceland investment licence.
Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: which Icelandic route fits your project and what it will cost.
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Central Bank of Iceland or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.