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Serbia vs Iceland
Tax Rate Comparison

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

🇷🇸 Serbia
vs
🇮🇸 Iceland
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
10–20%
Stable; EU accession timeline affecting reform pace
No change
~36.94%
Stable; municipal rates adjusting slightly
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10–20%
Standard 20% maintained
No change
11–24%
Standard 24% maintained; EEA rules apply
No change

Corporate Tax Rate

Corporate Tax Rate
15%
15% competitive; Pillar Two for MNCs
No change
20%
20% stable
No change

Capital Gains Tax

Capital Gains Tax
15%
15% flat
No change
22%
22% capital income rate
No change

Social Security & Payroll

Social Security / Payroll
~37.8%
Reform pending; pension system under pressure
No change
~14.5%
Pension reform debate; high mandatory rates maintained
No change
State, Regional & Local Taxes

🇷🇸 SerbiaMunicipal & City Taxes

Serbia's 145 local self-government units (cities and municipalities) levy local communal taxes including sign/advertisement tax, local utilities contribution, and vehicle fees. Property tax (porez na imovinu) is locally set at 0.1%–0.4% for citizens. Belgrade has higher property tax values than other cities. Corporate income tax is national at 15%. Serbia has EU candidate status and is aligning tax legislation with EU standards. The flat 15% corporate rate and low income tax rates make it competitive in the region.

🇮🇸 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.

Serbia vs Iceland: Key Tax Differences (2026)

💰 Income Tax: 🇮🇸 Iceland has a higher top income tax rate (10–20% vs ~36.94%). 🇷🇸 Serbia is more favourable for high earners.

🛒 VAT/Sales Tax: Iceland has a higher consumption tax (10–20% vs 11–24%).

🏢 Corporate Tax: 🇷🇸 Serbia offers a lower corporate rate (15% vs 20%), which can influence business location decisions.

📈 Capital Gains: 🇷🇸 Serbia taxes investment gains at a lower rate (15% vs 22%), benefiting investors.

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