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Liechtenstein vs Iceland
Tax Rate Comparison

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

🇱🇮 Liechtenstein
vs
🇮🇸 Iceland
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
2.5–22.4%
Effective rates stable; financial centre competitiveness
No change
~36.94%
Stable; municipal rates adjusting slightly
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
8.1%
8.1% standard; Swiss system alignment
No change
11–24%
Standard 24% maintained; EEA rules apply
No change

Corporate Tax Rate

Corporate Tax Rate
12.5%
12.5%; Pillar Two compliance
No change
20%
20% stable
No change

Capital Gains Tax

Capital Gains Tax
0%
No CGT private assets
No change
22%
22% capital income rate
No change

Social Security & Payroll

Social Security / Payroll
~18.9%
AHV stable; mandatory pension contributions
No change
~14.5%
Pension reform debate; high mandatory rates maintained
No change
State, Regional & Local Taxes

🇱🇮 LiechtensteinMunicipal Tax Supplements

Liechtenstein's 11 municipalities levy a municipal supplement on national income tax ranging from 150%–250% 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.

🇮🇸 IcelandMunicipal 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.

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

Liechtenstein vs Iceland: Key Tax Differences (2026)

💰 Income Tax: 🇮🇸 Iceland has a higher top income tax rate (2.5–22.4% vs ~36.94%). 🇱🇮 Liechtenstein is more favourable for high earners.

🛒 VAT/Sales Tax: Iceland has a higher consumption tax (8.1% vs 11–24%).

🏢 Corporate Tax: 🇱🇮 Liechtenstein offers a lower corporate rate (12.5% vs 20%), which can influence business location decisions.

📈 Capital Gains: 🇱🇮 Liechtenstein taxes investment gains at a lower rate (0% vs 22%), benefiting investors.

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All 🇱🇮 Liechtenstein comparisons →All 🇮🇸 Iceland comparisons →