Regulations
Regulatory Constraints and Reliefs
As a member of the 30-nation European Economic Area, Iceland implements the same basic liberal business philosophy as the European Union. Except in a few limited areas, all EU commercial legislation and directives take effect in Iceland.
Iceland makes an ideal springboard for tariff-free access to the major EU market area, as well as a fully competitive location for EU companies to operate in.
Exchange Controls
As a general rule, no restrictions are imposed in Iceland on buying or selling foreign currency*.
Foreign Ownership of Businesses
In principle, foreign ownership of businesses is unrestricted. However, some limitations apply to specific sectors, namely fishing, primary fish processing, energy production and aviation.
A wide range of portfolio investment options are available through licensed securities trading companies.
* After the financial crisis hit Iceland in October 2008, the Central Bank of Iceland is authorized upon an approval from the Minister of Commerce to limit or stop certain financial undertakings that do not concern commerce with goods and services. The Central Bank can also obligate domestic companies to deposit their foreign currency for sold goods and services. These restrictions are temporarily. In November 2009 all restrictions were lifted on new investment (made after November 1st, 2009)
"Doing Business in Iceland", the detailed booklet written by the Invest in Iceland Agency and major accounting firms in Iceland, with assistance from the Internal Revenue Directorate, the Ministry of Industry and Commerce, and other bodies is being revised and will be available shortly.