On January 1st 2007 the income tax on individuals in Iceland is reduced by 1%, the allowed tax deduction is raised and VAT on food, restaurant services, books, magazines and music is lowered.

Sustainable geothermal energy replaced coal in Xian Yang on december 3rd 2006 when ENEX-China formally opened phase I of the district heating system. The Icelandic Minister for Foreign Affairs, Mrs. Valgerdur Sverrisdottir, said she was extremely proud to note that Icelandic knowledge was contributing to keeping Chinese households warm and develop pollution-free and sustainable energy resources.

Hydro has opened a North Atlantic office in Reykjavik to support its strategy of repositioning and growth in its primary aluminium activities and mature new business opportunities.

Iceland´s positive business environment, low tax rates and efficient infrastructure make the country an ideal candidate for an international finance center according to a new report compiled for the Prime Minister by a team of experts. The team recommended a number of measures and government officials hope that the Parliament will finish the legislative reforms before summer.

Iceland Stock Exchange will become part of an integrated Nordic and Baltic securities market and participate in establishing the OMX Nordic Exchange as a leading European marketplace by the end of this year. This decision has raised the profile of the Icelandic market and the opportunities available to foreign investors.

Iceland scores 9.6 out of 10 on the Transparency International´s Corruption Perceptions Index 2006 and keeps its top positions third year running.

United Nation´s Human Development Index confirms Iceland´s status as one of the best places in the world to live, ranking Iceland´s achievements in terms of educational attainment, life expectancy and adjusted real income number 2 of 177 countries indexed.

The Invest in Iceland Agency has re-opened the Agency´s website after thorough re-design. The navigation and structure has been simplified to make the new web site easier to use. We apologize for the lack of update and news while the construction work was in progress but it is our firm belief that the new website will offer investors and others interested in Iceland and the Icelandic economy, a much better service. The Agency´s team is also open for all suggestions to further improve our services. Please contact us.

The Icelandic business environment is fast moving, focused and company-friendly. Iceland presents international businesses with a wide range of opportunities for different activities and operations in a highly developed economy.

Iceland's economic fundamentals are strong, and despite recent commentary Iceland is "not going down traditional routes to financial instability," Professor Mishkin of Columbia asserted in a meeting hosted by the Iceland Chamber of Commerce in New York in May. Present were over 100 top international banking and financial executives.

Global investment and innovation publication Red Herring today announced that leading broadband solutions provider and systems integrator Industria is a recipient of this year's Red Herring 100 Europe, a selection of the 100 private companies based in the EMEA region that play a leading role in innovation and technology.

Further Information OECD Broadband Statistics, December 2005 Iceland now leads the OECD in broadband penetration, according to 2005 broadband statistics from OECD. Iceland now has 26.7 subscribers per 100 inhabitants, ahead of Korea with 25.4, and Netherlands with 25.3. US has 16.8 broadband connections per 100 subscribers. The strongest per-capita subscriber growth came from Iceland, Finland, Norway, the Netherlands and Australia. Each country added more than 6 subscribers per 100 inhabitants during 2005.

High levels of education, hardworking people, positive environment for innovation and green energy, both hydrogenerated and geothermal, create Iceland´s favourable conditions according to Professor Gregory Miller, Harvard Business School.

Related Items The full report can be downloaded in .pdf format from the website of the Confederation of Danish Industries.

Iceland´s status as one of the world´s most competitive economies is confirmed in the IMD World Competitiveness Yearbook 2006. As last year Iceland ranks number 4 globally and is in first place in Europe, outperforming the continent´s – and some of the world´s – biggest industrial nations.

The tax system, laws and regulations in Iceland create the ideal environment for holding companies. Detailed comparison between Iceland and various other economies confirms this advantage.

Doing Business in Iceland, 5th edition, is now available in pdf format on the Invest in Iceland website. This publication has been revised and updated to reflect the latest changes in legislature. Please note that this edition is bookmarked for the reader´s convenience.

deCODE genetics has acquired privately-held Icelandic cancer research firm Urdur, Verdandi Skuld (UVS). The acquisition enables deCODE to broaden and enhance its cancer program by applying the company's unique gene discovery and drug development capabilities to an even larger set of population-based resources.

Iceland ranks fifth in the 2006 Index of Economic Freedom, published by Wall Street Journal and the World Heritage Foundation, achieving the same score as UK.