Business climate in Iceland
Iceland ranks #34 of 54 on the overall business climate (score 52). Its strongest suit is rule of law, followed by business taxes; the weakest is cost of capital.
| Driver | Score | Rank | Measures |
|---|---|---|---|
| Red tape and ease of doing business | 43 | #47 of 54 | Regulatory framework (World Bank B-READY 2025): 67 (2025); Business entry (B-READY): 82 (2025); Public services for business (B-READY): 56 (2025); Days to start a business (Doing Business): 12 (2017); Procedures to start a business (Doing Business): 5.00 (2017); Ease of doing business rank (Doing Business, 1 = easiest of 190): 23 (2017) |
| Rule of law and legal certainty | 64 | #28 of 54 | Liberal democracy (V-Dem): 0.72 (2025); Corruption perceptions score (higher = cleaner): 77 (2025); Strength of legal rights for borrowers and lenders: 5.00 (2017); Dispute resolution (B-READY): 53 (2025) |
| Taxes on business | 63 | #20 of 53 | Corporate income tax rate (headline): 20 (2026); Total tax and contribution rate on commercial profits: 30 (2017); Taxation administration (B-READY): 57 (2025) |
| Cost of capital | 27 | #23 of 27 | Real interest rate: 3.87 (2025); Bank lending interest rate: 11 (2025); Access to finance (B-READY): 76 (2025) |
| Energy prices for business | – | – | no comparable figure yet |
| Growth momentum and investment trend | 49 | #27 of 53 | Real GDP growth, average of the last five years: 3.81 (2025); Growth trend: last three years against 2015-2019: -2.18 (2025); Foreign direct investment, net inflows: 6.80 (2023) |
Countries with a similar profile
Poland · 
Cyprus · 
Slovenia · 
Sweden
Find the best business sites in Iceland
Open the mapSources as on the business-climate table. Nestlyzer scores each measure 0–100 between the 5th and 95th percentile of the countries it covers. How the method works.