Iceland vs Ukraine
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
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.
๐บ๐ฆ Ukraine โ Local Council Taxes
Ukraine's 27 oblasts and the city of Kyiv have limited independent taxing powers โ income tax is national. Local councils set rates for land tax (0.01%โ3% of normative monetary value), real estate tax (up to 1.5% of minimum wage per sq.m.), and transport tax. Unified tax regimes for entrepreneurs (1โ3 groups) are nationally set with simplified rates. Wartime conditions have significantly altered tax collection and enforcement. The simplified system (ัะดะธะฝะธะน ะฟะพะดะฐัะพะบ) covers ~60% of registered entrepreneurs.
Iceland vs Ukraine: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ธ Iceland has a higher top income tax rate (~36.94% vs 18%). ๐บ๐ฆ Ukraine is more favourable for high earners.
๐ VAT/Sales Tax: Iceland has a higher consumption tax (11โ24% vs 20%).
๐ข Corporate Tax: ๐บ๐ฆ Ukraine offers a lower corporate rate (18% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐บ๐ฆ Ukraine taxes investment gains at a lower rate (18% vs 22%), benefiting investors.