Invest in Iceland is a one stop information centre for foreign investors and provides information on investment opportunities in Iceland and the business environment. Invest in Iceland is a part of Promote Iceland. (www.promoteiceland.is) Invest in Iceland’s team provides free of charge information and expert confidential service on all aspects of investments, arranges site visits and plans contacts with local authorities as well as local business partners and professional consultants. Invest in Iceland Borgartún 35 105 Reykjavik ICELAND Tel: +354 511 4000 Fax: +354 511 4040 E-mail: info@invest.is www.invest.is
20% Corporate INCOME tax
NOT JUST ICE
A European nation
YOUNG AND EDUCATED Percentage of the working population over 65 years
Source: OECD, combined corporate income tax rate 2011
Rising number of university students
3.000
0
0
Iceland focuses on favourable environment for businesses in general, including low corporate tax, availability of land, minimum red tape and a new incentives regime.
Quality of education and infrastructure
Iceland is not at all the land of ice and snow as one might think. Thanks to the Gulf Stream the Icelandic winters are mild and the summers are warm. The average temperature in Reykjavik in January is just below 0°C and in July 10.6°C. Icelandic harbours are icefree the whole year.
As a member of the EEA Iceland is a part of the inner European market with tariff free access to the European Union. Iceland is currently a candidate country for full membership of the EU.
Icelanders are a young nation, with less than 13% of the population over 65years old. The labour force is well educated, and the number of university students has doubled in the past 10 years.
NEW INCENTIVES REGIME
TOP WEB-SAVVY NATION
Iceland is closer than you think
How the educational system meets the needs of a competitive economy according to IMD WCY Executive Opinion Survey based on an index from 0 to 10.
Iceland*
USA
UK
Source: World Competitiveness Report 2011, IMD
Iceland
860.84
Sweden
Denmark
Japan
USA
UK
India
India
854.05 841.19 827.00 820.27 796.63
120.32 0
* Ranked #2 in the world
According IMD’s World Competitiveness Yearbook 2011 the categories where Iceland is among the top ten nations are Basic Infrastructure, Education, Health and Environment, Societal Framework and Technological Infrastructure. Other international comparative studies place Iceland near the top of the league when it comes to R&D spending.
20 10
6.000
5%
20 0 5
10%
Ic el an d
9.000
Ja pa n
12.000
15%
Eu ro pe
20%
U SA
15.000
20 0 0
18.000 25%
200 400 600 800 1000
Number of internet users per 1000 people Source: World Competitiveness Report 2011, IMD
A new effective incentives regime for new direct investments in Iceland has been introduced, offering a range of benefits from tax breaks and exemption from certain charges to direct cash grants.
Iceland is top of the rank when it comes to internet users. People are generally very open minded towards new technology and it is no surprise that Iceland ranks 4th when it comes to employment in knowledge-intensive services according to the Global Innovation Index 2011.
Flight time to Boston is 5 hours; London is 2.5 hours. Regular shipping to both sides of the Atlantic: 3 days to Europe – 7 days to the US.
THE MOST RELIABLE ENERGY INFRASTRUCTURE IN THE WORLD
GEOTHERMAL POWER
World competitiveness Report 2011, IMD
COMPETITIVE ENERGY PRICES
100% GREEN ELECTRICITY
Eurozone average electricity prices for industrial customers, Euro/MWh. Source: Eurostat.
The ratio between electricity produced from renewable energy sources and the gross national electricity consumption. Source: Eurostat, June 2011. 2008 Figures
2004
2005
2006
2007
2008
2009
2010
The low production cost of electricity in hydro- and geothermal powerplants gives Iceland a definite competitive edge when energy prices are rising all over the world, and renewable energy is scarce. Iceland can offer hydro- and geothermal energy at competitive prices. Final rates are negotiated directly with the providers, and long-term contracts (10–20 years) are available.
The Electricity power grid in Iceland
GREEN POWER POTENTIAL
Iceland is one of only two countries in Europe with all of its electricity consumption from renewable resources.
GWh/year
HYDRO POWER Geothermal Hydro
Being evaluated
Next years
2009
2003
Iceland is the only country in Western Europe that still has large resources of hydroelectric power and geothermal energy remaining to be harnessed. According to a proposal for the Icelandic Master Plan for Hydro and Geothermal Energy Resources an increase of 12,000 GWh is possible in the near future and potential of further 12,100 GWh is being evaluated. Future updates of the Master plan will reveal the full potential.
Iceland is on the cutting edge of harnessing geothermal energy and ReykjavĂk City has the largest geothermal district heating system in the world
The hydro electric power plants in Iceland are new, furnished with state of the art equipments and the latest technology, making them both highly effective and reliable.
ENERGY INTENSIVE
TOURISM
The diverse and otherworldly landscape of Iceland, sound infrastructure, rich cultural heritage, the healing powers of geothermal water and advanced health care system have led to rapid growth of the tourism industry with increased emphasis on health and lifestyle related tourism, conferences and year-round adventures.
LAND INTENSIVE
KNOWLEDGE BASED
Green energy and the world‘s most reliable energy infrastructure attracts energy intensive industries and the environmentally aware. The cool climate, abundance of cold water, educated workforce and multiple submarine fiber optic cables connecting Iceland to Europe and North America make Iceland an ideal cost competitive location for data centers.
Iceland has vast spaces of land available close to advanced infrastructure and the power grid. Industrial scale pesticidefree greenhouses and fish farms benefit from the proximity to geothermal power plants. Mink farmers are looking to the Icelandic countryside for low cost quality production. Land is usually leased from the local municipalities.
A well-educated nation with a top-rated education system welcomes industries that demand highly skilled workers. Life sciences, various creative industries, production of computer games, clean-tech companies and high-tech solutions for the food industry and fishing are just examples of the growth in knowledge based industries in Iceland.