Nikolai Timofejev
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 of Iceland decision, including banking and payment rails.
Get an EMI license in Iceland.
The EEA's smallest queue: the Central Bank of Iceland licenses e-money institutions under Act 17/2013 with full passporting into the EU - the same desk that authorised Rapyd's European hub and Monerium's on-chain e-money. We build the file end to end.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
Iceland in brief
A small desk with outsized precedents.
Iceland licenses e-money institutions through the Central Bank of Iceland - the Financial Supervisory Authority merged into the central bank in 2020, so the licensing desk and the monetary authority are one institution. The framework is the EEA-harmonised pair: the Act on the Issuance and Handling of Electronic Money No 17/2013 (EMD2) and the Payment Services Act No 114/2021 (PSD2), with €350,000 initial capital for the EMI, payment-institution tiers below, safeguarding and fit-and-proper testing to the European standard. Through the EEA agreement, an Icelandic authorisation passports into every EU member state exactly as an EU licence does.
What a jurisdiction of 400,000 people offers is precedent quality and access. This is the desk that licensed Rapyd Europe hf. - the global payment group's European e-money hub, and Monerium EMI ehf., the first e-money institution issuing regulated e-money natively on blockchains: proof the supervisor reads both classic fintech and genuinely novel models seriously. The queue is short, the supervisor is reachable, corporate tax is 20%, and Reykjavík's grid runs on renewable energy - a detail that matters to infrastructure-heavy platforms. Realistic end-to-end: 8-14 months; we run the file from our Reykjavík office.
Central Bank of Iceland licence under Act 17/2013: €350,000 capital, EEA passporting into the whole EU, the shortest queue in the system.
The precedents: Rapyd's European hub and Monerium's blockchain-native e-money - both licensed here. Novel models welcome, properly mapped.
The two routes
Full EMI - or the payment-institution tier.
One supervisor. The central bank itself, and two entries: the e-money institution at €350,000, or payment-institution licences below it. We fix the scope first, then build once.
EMI at €350,000 - or PI routes, on the desk with the on-chain precedent.
01 - E-MONEY INSTITUTION
Rafeyrisfyrirtæki licence
The flagship Central Bank authorisation under Act 17/2013: e-money issuance plus the payment-services list, €350,000 initial capital, safeguarding, and EEA passporting into the whole EU from Reykjavík.
The flagship Central Bank authorisation under Act 17/2013: e-money issuance plus the payment-services list, €350,000 initial capital, safeguarding, and EEA passporting into the whole EU from Reykjavík.
- ✓E-money issuance and distribution
- ✓Full PSD2 payment-services list
- ✓€350,000 initial capital · own funds ongoing
- ✓Safeguarding of client funds
- ✓Full EEA passport - including the EU
- ✓The Rapyd & Monerium precedent desk
02 - PAYMENT INSTITUTION · NOVEL MODELS
On-chain e-money precedentPI and hybrid routes
Payment-institution licences run under Act 114/2021, and for genuinely novel models, this desk has already said yes once: Monerium's blockchain-native e-money was licensed here before 'tokenised money' was a phrase.
PI licences under Act 114/2021; novel-model literacy proven; upgrade path to the EMI.
- ✓PI licences by service tier
- ✓Money remittance and transfers
- ✓Account information services
- ✓Novel-model literacy - proven
- ✓Upgrade path to the EMI
- ✓Same Central Bank supervision
Costs and timelines are confirmed for your case before any work begins. Central Bank fees follow its published schedule; capital, safeguarding and substance costs are itemised in your quote.
Why Iceland
Small queue, serious precedents.
The framework is EEA-harmonised EMD2/PSD2. Supervised by the central bank itself, with the EU market attached by passport.
✓
The precedent desk
Rapyd chose Iceland for its European e-money hub; Monerium licensed the world's first blockchain-native regulated e-money here. Two very different models, one supervisor that read both.Rapyd and Monerium said yes here.
✓
EEA passport into the EU
An Icelandic authorisation notifies into every EU member state exactly as an EU licence does. The single market from the Atlantic's smallest queue.Full single market from Reykjavík.
✓
A reachable central bank
Licensing sits inside the Central Bank of Iceland. One institution, short lines of communication, and a supervisor small enough to actually engage with your model.Short lines, real engagement.
✓
20% corporate tax
The lowest headline rate in the Nordics, in a system simple enough to model on one page.Nordics' lowest headline.
✓
Renewable-grade infrastructure
Reykjavík's grid is renewable and the datacenter cluster is real. For compute-heavy payment platforms, the energy story is operational, not decorative.Operationally cheap compute.
✓
PSD3-ready files
PSD3/PSR will flow into the EEA agreement as their predecessors did. We structure Icelandic files to convert rather than be rebuilt.Flows into the EEA - converts.
How it compares
How Iceland differs from other routes.
Iceland trades market size for queue size. With the same passport at the end. The side-by-side comparison is below.
Iceland vs other jurisdictions
| Feature |  Iceland | Other jurisdictions |
|---|---|---|
| Regulatory regime | Acts 17/2013 & 114/2021 - CBI | EU-state transpositions |
| Passport | Full EEA - into the EU | EU/EEA from inside |
| Queue | The EEA's shortest | Months of backlog |
| Novel models | On-chain e-money precedent | First-impression reviews |
Regulatory regime
IcelandActs 17/2013 & 114/2021 - CBI
Other jurisdictionsEU-state transpositions
Passport
IcelandFull EEA - into the EU
Other jurisdictionsEU/EEA from inside
Queue
IcelandThe EEA's shortest
Other jurisdictionsMonths of backlog
Novel models
IcelandOn-chain e-money precedent
Other jurisdictionsFirst-impression reviews
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Iceland | EMI (Central Bank) | 20% CIT | EEA passport, short queue |
 Lithuania | EMI (Bank of Lithuania) | 17% CIT (2026) | CENTROlink, specialised desk |
 Denmark | EMI (Finanstilsynet) | 22% CIT | Free application, §50 on-ramp |
 Norway | EMI (Finanstilsynet NO) | 25% + finansskatt | EEA passport, NOK fee |
IcelandLicense typeEMI (Central Bank)
Taxation20% CIT
RequirementsEEA passport, short queue
LithuaniaLicense typeEMI (Bank of Lithuania)
Taxation17% CIT (2026)
RequirementsCENTROlink, specialised desk
DenmarkLicense typeEMI (Finanstilsynet)
Taxation22% CIT
RequirementsFree application, §50 on-ramp
NorwayLicense typeEMI (Finanstilsynet NO)
Taxation25% + finansskatt
RequirementsEEA passport, NOK fee
Before you apply
Requirements for the Central Bank licence.Requirements for the licence.
The Acts set the file's contents to the European standard. The craft is completeness a central bank can verify. The checklist below is what a passing application contains.
01
Icelandic entity. An hf. or ehf. with its head office and management in Iceland.
02
Initial capital - €350,000 equivalent for the EMI, evidenced and paid in; PI tiers below.
03
Fit and proper management and holders. Competence, clean records and ownership transparent to UBOs.
04
Programme of operations. Services, volumes and three-year projections the supervisor can interrogate.
05
Safeguarding. Segregated client-fund accounts or insurance, with documented reconciliation.
06
AML/CFT framework. KYC, monitoring and reporting to the FIU with a resident compliance officer.
07
IT and security documentation. Architecture, resilience and incident procedures.
08
Internal governance. Control functions, outsourcing register and conflicts procedures.
09
Own-funds methodology. The ongoing capital calculation, modelled forward.
10
Novel-model clarity. Where tokenised or on-chain elements exist, the legal mapping drafted explicitly.
01
Icelandic ehf./hf., managed locally.
02
€350,000 capital (EMI).
03
Fit & proper holders to UBOs.
04
Interrogable programme of operations.
05
Safeguarding with reconciliation.
06
AML with resident officer (FIU).
07
Solid IT documentation.
08
Governance and outsourcing register.
09
Own-funds method modelled forward.
10
Novel models mapped explicitly.
Reflects Act No 17/2013, Act No 114/2021 and Central Bank of Iceland practice as of 2026.Act 17/2013 + Act 114/2021 + CBI practice, as of 2026.
How it works
From first call to the Central Bank register.
01
Route and strategy
EMI or PI, classic or novel-model. We fix the scope, capital and timeline in writing.EMI or PI; classic or novel.
02
Icelandic company and people
Ehf. formation, capital evidence and the resident officers the central bank vets.Ehf., capital, resident officers.
03
The application file
Programme, safeguarding, AML and IT documentation to the Acts' standard. Complete before filing, because completeness is the timeline.Complete before filing. That is the timeline.
04
Central Bank review
A short queue, direct question rounds - 8-14 months realistic end to end.Short queue; 8-14 realistic.
05
Licence and launch
The register entry, EEA notifications into the EU and the reporting calendar. Live from Reykjavík.EEA notified, live from Reykjavík.
Quick facts
RegulatorCentral Bank of Iceland
EMI capital€350,000
Legal basisAct 17/2013 · Act 114/2021
QueueThe EEA's shortest
PrecedentsRapyd · Monerium
Realistic timeline8-14 months
Corporate tax20%
PassportFull EEA - into the EU
A central bank small enough to engage with your model, and a file good enough to deserve it. The second part is our job.
On the ground in Iceland
Run from our Reykjavík office.
Prifinance - Iceland
Reykjavík · Iceland
Reykjavík, Iceland
01
Icelandic company formation
Ehf. incorporation, capital placement and the corporate layer the Central Bank expects. Structured for the licence from day one.Ehf. + capital, structured for the file.
02
The CBI file
Programme of operations, safeguarding design, AML pack and IT documentation to the Acts' standard. Drafted by us and defended through the supervisor's rounds.To the Acts' standard, defended directly.
03
Novel-model mapping
For tokenised and on-chain elements, the legal architecture drafted explicitly. On the desk that already licensed blockchain-native e-money once.On-chain architecture, drafted explicitly.
04
Substance and staffing
Resident directors, compliance officer and MLRO from Reykjavík's compact but capable talent pool. Real substance the central bank recognises.Reykjavík talent, real ops.
We also have offices in
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Dubai
UAE
33 Level, Al Saqr Business Tower
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of payment companies in Iceland.
The Nordics' lowest headline rate - 20%. In a system simple enough to model on a page, with VAT-exempt payment services throughout.
Corporate tax 20%
The general corporate rate for limited companies. The lowest in the Nordics, applied to an EMI's fee and float income under ordinary rules.Nordics' lowest headline.
VAT-exempt payment services
Payment and e-money services are VAT-exempt financial services; the 24% standard rate touches only ordinary supplies.24% only on ordinary supplies.
Dividends 20-22%
Withholding on distributions with treaty relief. Corporate structures within the EEA model cleanly under participation rules.Treaty relief; EEA participation.
A one-page system
Icelandic corporate taxation has few layers and fewer surprises. Modelling is fast, and the administration is digital.Few layers, fast modelling.
Renewable-cost operations
Energy and cooling price competitively on a renewable grid. The operating base for compute-heavy platforms is structurally cheap.Cheap, green compute.
Treaty coverage
A functional treaty network across Europe and North America. Group structures above the Icelandic entity model cleanly.Functional network.
Tax summary
Corporate tax20%
VAT on payment servicesExempt
Standard VAT24%
Dividend withholding20-22% · treaty relief
System complexityLow - few layers
Tax treaties45+
*Figures as of 2026 per Skatturinn (Iceland Revenue and Customs). Group and founder-level outcomes are modelled per structure.
Turnkey professional support
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.
Oleksii Kindratenko
Builds the application itself: Icelandic ehf., AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
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 institution.
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Iceland · Central Bank of Iceland
Launch your payment project in Iceland with expert support.
Full-service assistance - from ehf. registration to the Central Bank licence, EEA passporting and ongoing compliance.
Get a consultation →Free legal opinion
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.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Icelandic EMI licence: the practical answers.
What licence does an e-money business need in Iceland?+
A rafeyrisfyrirtæki (e-money institution) licence from the Central Bank of Iceland under Act No 17/2013 - €350,000 initial capital, safeguarding and full EEA passporting. Payment-institution licences under Act No 114/2021 sit alongside.
Does an Icelandic licence really passport into the EU?+
Yes - Iceland's EEA membership extends EMD2/PSD2 passporting fully. An Icelandic authorisation notifies into every EU member state exactly as an EU licence would; that is precisely why Rapyd built its European hub here.
Who has actually licensed here?+
Rapyd Europe hf. - the global payment group's European e-money institution, and Monerium EMI ehf., the first regulated issuer of blockchain-native e-money. The precedents cover both classic fintech and genuinely novel models.
How long does licensing take?+
The queue is the EEA's shortest and the supervisor is directly reachable - realistic end-to-end 8-14 months for a complete, well-built file. Completeness is our job.
Is Iceland suitable for tokenised or on-chain e-money models?+
It is the one EEA desk with a licensed precedent: Monerium's blockchain-native e-money was authorised here. Novel architecture still needs explicit legal mapping - we draft it that way from the start.
What substance is expected?+
An Icelandic ehf. managed locally, resident fit-and-proper management, an AML officer reporting to the FIU, real safeguarding arrangements and solid systems documentation.
How are payment companies taxed?+
20% corporate tax - the Nordics' lowest - with VAT-exempt payment services and 20-22% dividend withholding subject to treaty relief. The system is simple enough to model on a page.
What about the currency?+
Iceland runs on krónur - euro-denominated products are served through the EEA passport into euro markets, exactly as Rapyd and Monerium structure it.
What changes under PSD3?+
PSD3 and the PSR will flow into the EEA agreement as their predecessors did - files we build now are structured to convert into the unified payment-institution regime.
Why Iceland rather than Lithuania or Denmark?+
Lithuania has CENTROlink; Denmark has the free application. Iceland has the shortest queue in the EEA, a central bank you can actually talk to, 20% tax, and the only on-chain e-money precedent in Europe. Novel models and speed-sensitive hubs pick it deliberately.
What licence is needed?+
CBI rafeyrisfyrirtæki - €350k; PI alongside.
EU passport?+
Yes - full EEA passporting into the EU.
Who licensed here?+
Rapyd Europe and Monerium. Real precedents.
How long?+
8-14 months; shortest queue in the EEA.
On-chain models?+
The only licensed precedent in Europe.
Substance?+
Resident officers, real Icelandic ops.
Taxes?+
20% CIT; VAT-exempt services.
Currency?+
ISK at home; EUR via the passport.
PSD3?+
Flows into the EEA - files convert.
Vs Lithuania?+
CENTROlink there; precedents and queue here.
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
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Google
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Google
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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.
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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.