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Third phase of government economic response to COVID-19

Increased support for companies, extension of part time employment with government support and simpler rules on financial restructuring of companies are key elements in the government's third phase of economic response to COVID-19

The third phase measures were announced 29 April. They follow up on the second phase and the initial response measures.

Part-time work with government support of up to 75% is extended to 31 August (from the original 1 June). From July onward the ceiling will be 50%.

Temporary simpler rules on financial restructuring of companies will be introduced, making it easier for companies to seek protection while assessing their position.

To avoid insolvencies companies can apply for a government support to pay a portion of salaries during notice period. 

Legislative bills on these measures are being drafted. Further information on the government's website.

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Incentives

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%.

Why Iceland

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