Do you live in another Nordic country and work in Iceland as an artiste or sportsman?
This information applies to you who are resident in another Nordic country and work in Iceland as an artist or an athlete and concerns taxation of your earned income only.
Taxation in Iceland
If you are resident in another Nordic country and work as an artist or an athlete in Iceland, you normally pay tax in Iceland.
Limited tax liability
You are subject to limited tax liability in Iceland when you work in Iceland as an artist or an athlete, while being resident in another country. If you work as an employee the taxation of your salary is the same as described in the section "Are you resident in another Nordic country and work in Iceland for a private employer?". You have to submit a tax return.
If you are an athlete or an artist performing independently you have to submit a tax return and pay income tax at the rate 15% without any personal exemption. You also have to pay a municipal income tax at the rate 13,1%.
If you are an artist performing independently you can, instead of paying income tax at the rate 15%, choose to pay 10% of your receipts without any deduction. In that cases you have to receive a special tax card at the Director of internal revenue (Ríkisskattstjóri) and your withholding tax payment are finally which means that you don´t have to submit a taxform.
Full tax liability
You may be subject to full tax liability in Iceland if you stay there 183 days or longer in a twelve months period. See the section on general information and full tax liability. You are taxed on your earned income according to the general rules.
Taxation in the country of residence
You continue to be subject to full tax liability in your country of residence, which means that you are also liable to pay tax there.
You are required to submit a tax return in your country of residence. If you are taxed in both Iceland and your country of residence, the country of residence must take into account that the amount has been taxed in Iceland.