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5.5. Source Rules with Respect to Income Derived by Non-Residents


Dividends received from companies that are incorporated and registered in Iceland and from foreign companies authorized to operate in Iceland are deemed Icelandic sourced.


Interest paid by Icelandic residents to non-residents is deemed Icelandic sourced.


Royalty fees paid for the use of intellectual property in Iceland, is deemed Icelandic sourced.

Rental income

Rental income from property situated in Iceland is deemed Icelandic sourced.

Service fees

Service fees paid to a non-resident are deemed Icelandic sourced if the service is rendered or used in Iceland.