Skip to main content
Filter

Iceland

Capital: Reykjavik
Population: 356,991
Total land area (km2): 102,775 km2
Passenger cars: 250,000
Highway (km): 37 km
Category Description
Registration Tax Benefits

Iceland - Registration tax benefits

Registration tax for passenger vehicles is based on CO2 emission. The tax is 0% for emissions up to 75 g/km (NEDC). Therefore, BEV's, hydrogen vehicles and most PHEV's are not taxed at registration. Methane and methanol vehicle are exempted from registration tax up to 1.250.000 ISK per vehicle.
Ownership Tax Benefits

Iceland - Ownership tax benefits

Bi-annual ownership tax for passenger vehicles (<3500 kg) is based on CO2 emissions. Vehicles with emissions below 121 g/km (NEDC) are taxed at a minimum tax rate. Therefore, BEV's, hydrogen vehicles and PHEV's are taxed at the minimum tax rate. Methane and methanol vehicle are also taxed automatically at the lowest tax rate.
VAT Benefits

Iceland - VAT benefits

"Temporary tax expenditure: i) VAT exemption for purchase of BEV's and hydro vehicles, with a cap of 15 thousand vehicles of each type. The maximum amount of VAT exemptions is 1.440.000 ISK per vehicle. ii) VAT exemption for purchase of PHEV's, with cap of 15 thousand vehicles. The maximum amount of VAT exemptions is 960.000 ISK per vehicle. iii) Full VAT refund for purchase and installation of home charging stations at residential properties."
Local Incentives

Iceland - local incentives

Grants are available from the City of Reykjavik to multi-appartment buildings when installing charging facilities.
Infrastructure Incentives

Iceland - Infrastructure Incentives

Incentives for charging infrastructure
Other Financial Benefits

Iceland - Other financial benefits

Free parking is availble for up to two hours for BEV's in Reykjavik and Akureyri
Announced policy changes

Iceland - Announced policy changes

"Temporary tax expenditure that have been legislated and enter into force 1st of July 2020: i) Maximum VAT exemption for BEV's and hydro vehicles increased from 1.440.000 ISK to 1.560.000 ISK per vehicle. ii) Full VAT exemption for buses/coaches in public transportation that use electric, hydro, methane or methanol, with a cap of 100 buses. iii) Full VAT exemption on rental of BEV's, PHEV's and hydro vehicles. iv) Accelerated annual tax depreciation for business vehicles that use electric, hydro, methane or methanol. v) Maximum VAT expemtpion for PHEV's decreased in phases from 960.000 ISK to 480.000 ISK per vehicle."
Category Description
Registration Tax Benefits

Iceland - Registration tax benefits

Registration tax for passenger vehicles is based on CO2 emission. The tax is 0% for emissions up to 75 g/km (NEDC). Therefore, BEV's, hydrogen vehicles and most PHEV's are not taxed at registration. Methane and methanol vehicle are exempted from registration tax up to 1.250.000 ISK per vehicle.
Ownership Tax Benefits

Iceland - Ownership tax benefits

Bi-annual ownership tax for passenger vehicles (<3500 kg) is based on CO2 emissions. Vehicles with emissions below 121 g/km (NEDC) are taxed at a minimum tax rate. Therefore, BEV's, hydrogen vehicles and PHEV's are taxed at the minimum tax rate. Methane and methanol vehicle are also taxed automatically at the lowest tax rate.
VAT Benefits

Iceland - VAT benefits

"Temporary tax expenditure: i) VAT exemption for purchase of BEV's and hydro vehicles, with a cap of 15 thousand vehicles of each type. The maximum amount of VAT exemptions is 1.440.000 ISK per vehicle. ii) VAT exemption for purchase of PHEV's, with cap of 15 thousand vehicles. The maximum amount of VAT exemptions is 960.000 ISK per vehicle. iii) Full VAT refund for purchase and installation of home charging stations at residential properties."
Local Incentives

Iceland - local incentives

Grants are available from the City of Reykjavik to multi-appartment buildings when installing charging facilities.
Infrastructure Incentives

Iceland - Infrastructure Incentives

Incentives for charging infrastructure
Other Financial Benefits

Iceland - Other financial benefits

Free parking is availble for up to two hours for BEV's in Reykjavik and Akureyri
Announced policy changes

Iceland - Announced policy changes

"Temporary tax expenditure that have been legislated and enter into force 1st of July 2020: i) Maximum VAT exemption for BEV's and hydro vehicles increased from 1.440.000 ISK to 1.560.000 ISK per vehicle. ii) Full VAT exemption for buses/coaches in public transportation that use electric, hydro, methane or methanol, with a cap of 100 buses. iii) Full VAT exemption on rental of BEV's, PHEV's and hydro vehicles. iv) Accelerated annual tax depreciation for business vehicles that use electric, hydro, methane or methanol. v) Maximum VAT expemtpion for PHEV's decreased in phases from 960.000 ISK to 480.000 ISK per vehicle."