Guides
Guides for the self-employed in Iceland
You don't need to know every term before you begin. Find the question you have today. Every guide shows the year's figures, its sources and the date it was last reviewed.
Figures and tools
Invoice to net salary, or salary to invoice. The same calculation Fustle Payroll uses.
Tax brackets, personal tax credit, social security, pension and VAT on one page with sources and a change log.
Due dates for withholding, VAT, pension contributions and the tax return through the year.
The terms that come up with Skatturinn, with the Icelandic words.
Getting started
The whole picture: registration, calculated remuneration, taxes, VAT, bookkeeping and rights.
Seven steps from idea to first invoice and first withholding return.
Registering as an employer and for VAT, the 8-day rule and the electronic route.
When a contract for services is really employment, and what that means.
Working for a platform as a contractor: taxes, VAT and vehicle costs.
Invoicing
Mandatory fields, numbering, credit notes and retention.
Taxes
All the charges and how they add up, with examples.
31.49%, 37.99% and 46.29%: how the brackets work, marginal versus average tax.
72,492 ISK per month: splitting, accumulation and transfer.
The monthly return, the 15th and surcharges.
The salary you pay yourself and the reference categories.
The business statement, deductions and assessment.
Value added tax
Registration at 2,000,000 ISK, 24% and 11%, input VAT and due dates.
Social security and pension
6.35%: what it funds and how it is calculated.
4% + 11.5%, choosing a fund and additional savings.
Expenses and deductions
Business expenses and receipts
What is deductible, what is not and how to document it.
Mileage log, business-use share and RSK 4.03.
Rights
Unemployment benefit, parental leave, sickness and pension: what the contributions give you.
Your next step in Fustle
The guides explain the subject. Fustle is the place to record your work, invoices and the records included in the plan you choose.
See how Fustle works · Ask us a question
General guides do not replace advice about your circumstances. Check each guide's review date and sources, especially for tax years and filing deadlines.