Iceland offers many opportunities for companies looking to expand operations overseas, with manufacturing and fishing the major industries and significant exports in the fishing sector. Getting started in Iceland requires careful planning and preparation before hiring employees, to stay compliant with the complicated tax system, banking requirements, employment contracts, and government agencies.
Companies must have a bank account to conduct business in Iceland, and identification numbers are required for all Icelandic and foreign workers. There are many options for company formation based on your business needs.
Labor and Payroll considerations:
- There is no minimum wage in Iceland, but most wages are set with Collective Bargaining Agreements
- An employment contract must be written for full-time employees after 2 months of beginning work
- Termination must be in writing, and employees have the right to an exit interview
- Non-EU/EEA workers must have a residence permit and work permit to live and work in Iceland. Work permits are authorized based on the type of work.
To simplify payroll and compliance in Iceland, Blue Marble has created easy-to-use technology with customized reporting so you can view your payroll costs in real-time. We have one platform to manage all countries, so you access one system to manage employees all over the world. Our hybrid service model gives you a US-based team and in-country experts to help when questions come up, so you can avoid compliance issues and ensure your employees are paid accurately and on-time. Talk to us about simplifying your payroll and compliance in Iceland – click here to learn more