Iceland vs North Macedonia
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
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.
๐ฒ๐ฐ North Macedonia โ Municipal Taxes
North Macedonia's 80 municipalities (opลกtini) levy property tax (0.10%โ0.20% of market value), communal fees, and business licences. Skopje, divided into 10 municipalities, has the largest combined tax base. The Public Revenue Office administers national taxes. North Macedonia gained EU candidate status and is progressing toward accession. It has maintained a flat 10% income and corporate tax rate as a competitive attraction. It joined NATO in 2020. The economy relies on manufacturing (auto parts), services, and remittances.
Iceland vs North Macedonia: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ธ Iceland has a higher top income tax rate (~36.94% vs 10โ18%). ๐ฒ๐ฐ North Macedonia is more favourable for high earners.
๐ VAT/Sales Tax: Iceland has a higher consumption tax (11โ24% vs 5โ18%).
๐ข Corporate Tax: ๐ฒ๐ฐ North Macedonia offers a lower corporate rate (10% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐ฒ๐ฐ North Macedonia taxes investment gains at a lower rate (10% vs 22%), benefiting investors.