Recommendable! This article recommends economic and tax policy reforms for Iceland. However, the author of this article is pessimistic given the current government of Iceland.
Iceland is one of those special small countries in Europe like Switzerland, Luxembourg, Lichtenstein, Montenegro and Monaco. It is always worth keeping an eye on them.
"Nineteenth-century Icelandic poet Grímur Thomsen said Iceland was like the two-faced Roman god Janus, with one face turned towards Europe and the other towards America. Indeed, Iceland acted on this when she rejected resuming talks on EU accession in a referendum on 29 August 2026, with 53 per cent against 47.
She is, with Norway and Liechtenstein, in the European Economic Area (EEA), which Switzerland has similar access to through bilateral agreements. ...
Domestic policy should also be revised, although this is unlikely under the present government, an uneasy alliance of social democrats, social liberals and populists under three female leaders. One popular step, though special interests would strongly resist it, would be to reduce taxes.
During the Davíð Oddsson era of extensive economic liberalisation, from 1991 to 2004, tax cuts largely paid for themselves. ...
Now, the [personal income] tax rate is 22 per cent. It should be brought down to 10 per cent so that Iceland can become a viable competitor for capital and corporations with Ireland, which has a 12.5 per cent corporate income tax (15 per cent for the largest multinationals).
The special resource rent tax imposed on profitable Icelandic fishing firms should be lowered to the point where it only covers the costs of managing the fisheries. ...
The inheritance tax (currently 10 per cent), which is really triple taxation (first on income, then on savings from what is left of that income, and then on the capital formed from those savings), should be abolished. ..."
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