Iceland vs Liechtenstein
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐ฎ๐ธ Iceland โ Municipal Income Tax
Iceland's 69 municipalities set their own local income tax rates, ranging from ~12.44% to ~14.52%, averaging ~14.45%. This is added to the national income tax. The combined effective rate for most earners is about 36.94% (national + municipal). Iceland has no inheritance tax on direct heirs. Real estate transfer tax (stimpilgjald) is 0.8% on property transfers. Iceland is not an EU member but belongs to the EEA, affecting VAT and trade rules.
๐ฑ๐ฎ Liechtenstein โ Municipal Tax Supplements
Liechtenstein's 11 municipalities levy a municipal supplement on national income tax ranging from 150%โ250% of the base amount. Liechtenstein is a financial centre with very competitive corporate and income taxes. The Principality has a customs and currency union with Switzerland (using Swiss franc). It joined the EEA in 1995 and is noted for its foundation and trust law used for wealth structuring globally.
Iceland vs Liechtenstein: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ธ Iceland has a higher top income tax rate (~36.94% vs 2.5โ22.4%). ๐ฑ๐ฎ Liechtenstein is more favourable for high earners.
๐ VAT/Sales Tax: Iceland has a higher consumption tax (11โ24% vs 8.1%).
๐ข Corporate Tax: ๐ฑ๐ฎ Liechtenstein offers a lower corporate rate (12.5% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐ฑ๐ฎ Liechtenstein taxes investment gains at a lower rate (0% vs 22%), benefiting investors.