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Iceland vs Romania
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฎ๐Ÿ‡ธ Iceland
vs
๐Ÿ‡ท๐Ÿ‡ด Romania
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
~36.94%
Stable; municipal rates adjusting slightly
No change
10%
10% flat; potential graduated system under IMF/EU pressure
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
11โ€“24%
Standard 24% maintained; EEA rules apply
No change
5โ€“19%
19% standard; possible increase for fiscal consolidation
No change
Corporate Tax Rate
Corporate Tax Rate
20%
20% stable
No change
16%
16% maintained; micro regime tightening
No change
Capital Gains Tax
Capital Gains Tax
22%
22% capital income rate
No change
10%
10% flat; potential reform
No change
Social Security & Payroll
Social Security / Payroll
~14.5%
Pension reform debate; high mandatory rates maintained
No change
~37.25%
Contribution reform pending; pension system deficit
No change
State, Regional & Local Taxes

๐Ÿ‡ฎ๐Ÿ‡ธ 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.

๐Ÿ‡ท๐Ÿ‡ด Romania โ€” Local & County Taxes

Romania's 41 counties (judeลฃe) and Bucharest municipality do not set income tax โ€” this is nationally set. Municipalities levy local taxes including property tax (impozit pe clฤƒdiri, impozit pe teren) and vehicle tax (impozit pe mijloace de transport). Bucharest has higher property tax coefficients than rural areas. A micro-enterprise tax regime (1% or 3% on turnover) applies to small companies instead of standard CIT. Romania has had the EU's lowest flat income tax rate at 10%.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Iceland vs Romania: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฎ๐Ÿ‡ธ Iceland has a higher top income tax rate (~36.94% vs 10%). ๐Ÿ‡ท๐Ÿ‡ด Romania is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Iceland has a higher consumption tax (11โ€“24% vs 5โ€“19%).

๐Ÿข Corporate Tax: ๐Ÿ‡ท๐Ÿ‡ด Romania offers a lower corporate rate (16% vs 20%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ท๐Ÿ‡ด Romania taxes investment gains at a lower rate (10% vs 22%), benefiting investors.

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