As of March 14th 2017, capital controls in Iceland are lifted. The removal of the capital controls represents the completion of Iceland's return to international financial markets.
Benedikt Jóhannesson, minister of finance and economic affairs says in the government's announcement: “Iceland's careful, measured approach to lift capital controls was developed and approved with domestic and international support. As a result of this structured plan, our diversified economy is larger than ever before and expected to continue to grow at a robust pace this year. Our sustainable fisheries, tourism, tech start-ups and renewable energy sectors have grown rapidly, providing a strong backbone to our economy. This move is the critical first step in the new Government's strategy for the country's financial future, and we can now look ahead with a healthier, stronger and more diversified economy.”
The Central bank has announced new rules on foreign exchange: "In general, households and businesses will no longer be subject to the restrictions that the Foreign Exchange Act places on, among other things, foreign exchange transactions, foreign investment, hedging, and lending activity". The full text of the new rules is available online from the Central Bank's website.
New foreign direct investment has been exempt from the capital controls but the lifting of the controls signals Iceland's full return to the international financial markets which is a positive step to encourage further foreign direct investment to Iceland.
Iceland focuses on a favorable business environment, including low corporate tax, availability of land and green energy at competitive prices and efficiency within European legislative framework. New direct investment projects can apply for an investment agreement, ensuring generous regional incentives, including a corporate tax rate ceiling of only 15%.
Along with having one of the lowest corporate tax rate in Europe, Iceland has a highly educated workforce which is ranked among the highest in the world, offers competitively priced renewable energy with an advanced infrastructure making Iceland an ideal location for investors