Categories: GovernmentPolitics

Incentives for Initial Investment in Iceland Act gets go ahead

The Icelandic Ministry of Industry, Energy and Tourism proposed a new bill of law that has recently been passed for investments in Iceland. The ‘Incentives for Initial Investment in Iceland’ bill is directed towards promoting initial investment in commercial operations, the competitiveness of Iceland and regional development by specifying what incentives are permitted in respect of new investments in Iceland and how they should be used.

The Minister of Industry now has authorisation to enter into new investment contracts on behalf of the Government. The previous methodology of making investment agreements on a case-by-case basis, subject to approval from the Parliament and the EFTA Surveillance Authority has been abandoned. This new process will consequently enhance initial investment in Iceland, the competitiveness of the country and also highlight which incentives can be granted to initial investment projects.

Thordur H. Hilmarsson, Managing Director of the Invest in Iceland Agency commented, “The aim of the new bill is to advance the promotion of industrial travel in a prominent way. With renewable energy at very competitive prices, well-educated labour, low corporate taxes and efficient placement between Europe and the USA, Iceland meets many requirements which are most relevant for foreign investors. The passing of the new Act is a great step forward for Iceland and a superb opportunity to bring a wide variety of direct foreign investment to the country”

A committee board will review all applications and the Invest in Iceland Agency will perform cost benefit analysis, as well as establishing the social and economical benefit for the country. The committee board then make a proposal to the Minister of Industry and the Minister makes an offer for an incentives package to the applicant on the basis of the Act.

Proposed investment projects need to meet requirements, such as being beneficial for the Icelandic economy and society, in terms of job creation, rural development, export and tax revenues and knowledge. However, approved investment projects will receive benefits in return, including derogations from taxes and charges. In addition, authorisation to fix the rate of income tax, in line with the current rate of income tax, for 10 years can be granted, as well as exemption from customs and excise duties on importation or domestic purchase of construction materials, machinery and equipment for the building and operation of the investment project.

For more information about investments in Iceland visit www.invest.is

Russell

Recent Posts

Base Station RF Power Amplifier Market to Experience Significant Growth Amid 5G Expansion and Rising Mobile Device Adoption

October 24, 2024 – Metastat Insights – The global Base Station RF Power Amplifier market…

1 week ago

World Leaders in Aeronautics, Defence, and Aerospace to Attend the Marrakech Air Show 2024

London, 23rd October 2024 – Under the High Patronage of His Majesty King Mohammed VI,…

1 week ago

Sunshine State Dentistry of Boynton Beach Launches New Website to Provide Patients with a Seamless Digital Experience

Boynton Beach, FL – September 10, 2024 – Sunshine State Dentistry of Boynton Beach, led…

2 months ago

Metastat Insights Projects Significant Growth in Tattoo Supplies Market by 2031

Sep 10, 2024 – Dallas, TX – A new report by Metastat Insights reveals that…

2 months ago

RIMC Celebrates 20th Anniversary, Bringing Global Digital Marketing Insights to Iceland

Reykjavik, Iceland – September 2024 – The Reykjavik Internet Marketing Conference (RIMC), Iceland's longest-running digital…

2 months ago

The Inspiring Journey of Sleipnir Tours

Hafnarfjörður, Iceland, July 16, 2024 – One evening in Iceland, Ástvaldur, the founder of Sleipnir…

4 months ago