On this page you find information about financial matters, about the currency and the banks, about taxes and duties as well as financial support of various kind. Having financial matters in order is helpful in daily life and quite necessary in fact. We all need income to support ourselves and our family and we also to pay taxes and various expenses.
The financial situation is very different between people and in some case there is a need for help. There are options regarding financial support, grants, loans and other kind of assistance.
The currency in Iceland is the Icelandic króna (ISK). Foreign currencies can be exchanged in banks. Today it’s not very common to see bills and coins, people rather use debit or credit cards or even mobile phone apps to pay for goods and services in daily life.
It’s necessary to have a bank account when living and working in Iceland. That will enable you to get your salaries directly into your bank account and it’s important for daily financial transactions.
Taxable income includes all kind of income from past and present employment, business and profession, and capital. All income received by the taxpayer in money or moneys worth is subject to tax, unless it is exempt.
Everybody who is liable to pay tax in Iceland must file a tax return every year, usually in March. In your tax return, you should declare your total earnings for the previous year and also your liabilities and assets.
Municipal authorities are obliged to provide their residents with the necessary support to ensure that they do not get into a situation where they are unable to resolve their own affairs.
Employees and self-employed individuals aged 18-70 are entitled to receive unemployment benefit providing that they have earned insurance cover and meet other conditions.