Iceland Wealth Tax Guide 2026
Iceland does not impose a wealth tax. There is no annual net worth tax, solidarity surcharge, or any other levy based on the value of an individual's assets.
No Wealth Tax
Iceland abolished its net wealth tax many years ago. Individuals are not required to pay any tax based on their total asset value, regardless of how high their net worth.
What Taxes Apply Instead?
While there is no wealth tax, the following property-related taxes apply:
- Annual property tax on real estate (0.625–1.65% of fire insurance value) — see the property tax guide
- Capital gains tax (22%) on disposal of assets — see the capital gains guide
- Inheritance and gift tax on transfers of wealth — see the inheritance guide
- Income tax on investment returns (dividends, interest, rental income)
No Exit Tax
Iceland does not impose a general exit tax on emigration. However, substantial shareholders in Icelandic companies may be subject to deemed disposal rules upon leaving.
Reporting Requirements
Although there is no wealth tax, the RSK tax return includes a section for asset and debt reporting. Individuals must declare:
- Real estate holdings (with fire insurance values)
- Bank accounts and financial assets
- Shares and securities
- Liabilities and debts
This information is used for statistical purposes and to verify income declarations rather than to levy a wealth tax.
International Comparison
Iceland's absence of wealth tax aligns it with most other Nordic countries (Sweden abolished wealth tax in 2007, Finland in 2006, Denmark in 1997; only Norway and Switzerland retain wealth taxes in Europe).