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Current business situation
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Visiting this country
Security & health, Visas, Travel tips & facts
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Country overview
Country facts, Economic climate, Political climate, Trade relations & statistics
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Useful websites and resources
Government, business & trade, Travel & tourism
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Doing business
Business opportunities, Business etiquette, Tariffs & regulations, Taxation, Business travel
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Contact details
Austrade offices, Australian Embassy
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Country facts
| Capital city: |
Reykjavík |
| Surface area: |
103,000 sq km |
| Population: |
300,000 |
| Official language(s): |
Icelandic |
| Government: |
Constitutional republic |
| Head of State: |
H.E. President Dr Ólafur Ragnar Grímsson |
| Head of Government: |
Prime Minister Mr Geir H. Haarde |
| Australian exports to Iceland: |
A$15 million |
| Australian imports from Iceland: |
A$22 million |
| Iceland's principal export destinations: |
Netherlands, UK, Germany |
| Iceland's principal import sources: |
USA, Germany, Norway
| (Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
Economic climate
Over the past decade, Iceland has experienced strong and consistent growth with low unemployment and inflation. It has a remarkable even distribution of income and an extensive welfare system. The economy depends heavily on the fishing industry that generates 70 per cent of its export earnings and employees 12 per cent of the population.
Similar to other Scandinavian countries suffering from the weak world economy, Iceland’s recent economic performance has seen a disappointing fish catch and pressure on the current account deficit. Inflation is looking relatively stable.
Key economic indicators and statistics for 2006:
GDP - US$16.3 billion
GDP per capita - US$53,001
Real GDP growth - 2.6 per cent
Inflation - 6.8 per cent
Political climate
The Republic of Iceland is a constitutional republic with 23 counties and 14 independent towns. Iceland gained independence from Denmark in 1944. The chief of state is President Olafur Ragnar Grimsson, and the head of state is Prime Minister (PM) David Oddsson. The cabinet is appointed by the PM (who is appointed by the President) and approved by parliament. President Grimsson ran unopposed in 2000, so there were no elections. There are 63 seats in Parliament (or Althing) where members are chosen by popular vote and serve four-year terms.
Trade relations and statistics
Iceland's membership in organisations such as the Artic Council, Council of Baltic Sea States and the Barent Euro-Artick Council sees close collaboration with all its Nordic neighbours. However, Iceland’s most extensive economic cooperation agreement concerns the European Economic Area, which forms the basis for a common market for goods, services, capital and labour between the member countries of the European Union (EU) and three member countries of the European Free Trade Association. Iceland is not a member of the EU. In addition, Iceland also has strong ties with the USA founded on the Defence Agreement 1951.
Major Australian exports to Iceland (2006-07):
- Pearls and gems – A$7 million
- Alcoholic beverages – A$3 million
- Non-electrical machinery, tools – A$1 million
Major Australian exports to Iceland (2006-07):
- Plastic plate, sheet, film and strip – A$2 million
- Sound or video recorders - A$2 million
- Medicaments (including veterinary) – A$2 million
- Aircraft and parts – A$1 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
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Business opportunities
The Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.
Business etiquette
Businss hours in Iceland:
- Business hours are 9.00am-5.00pm, Monday to Friday
- Banks are open between 9.15am-4.00pm, Monday to Friday
Business practices:
- Many customs and business practices are similar with those in Australia. The Icelandic people are direct, and easy to get along with.
- Most business-people have tight schedules, so it is advisable to seek appointments well in advance of your visit. Use of 24-hour time will avoid any appointment/time confusions.
- Punctuality is required both for business and social appointments. It is advisable to notify well in advance if you know you are going to be late.
- First name terms are more common in younger, modern businesses than in traditional circles or at formal occasions, but if you are unsure, leave it to your host to suggest first names.
- General greetings are by a firm handshake, stating clearly both your first name and surname. Be sure to keep good eye contact.
- Business cards are widely used and it would be advisable to offer your card at the beginning of the meeting.
- Straightforward and direct is the general approach in business in Iceland.
- Presentations should be precise and clear, and you should not make any promises you cannot keep. Your honesty will be respected.
Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.
Tariffs and regulations
Iceland implements the same basic liberal business philosophy as the European Union (EU). Except in a few limited areas, all EU commercial legislation and directives take effect in Iceland. Standard restrictions apply in Iceland on the import of live animals, firearms, dangerous substances, pharmaceuticals, etc.
Taxation
Resident companies in Iceland, and Icelandic branches of foreign resident companies, are liable for corporate income tax (national income tax) on their net earnings. Icelandic taxation is based on the same principles as in other European countries. The corporate tax rate is 17 per cent, whilst International Trading Companies, registered in Iceland but engaged in trading that does not involve Iceland, are liable for five per cent corporate income tax. Companies and individuals in Iceland pay net worth tax. Invest in Iceland has more information on taxes in Iceland, and another useful link is the Directorate of Customs.
Business travel
A special FlyBus service runs between the airport and Reykjavik city. The service runs after each flight. This is the most economical way of getting from the airport to the city. An alternative is to catch a taxi; there are a number of taxi services that are available 24 hours. The trip takes around 40 minutes. |
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Security and health
The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Iceland. This is regularly updated, and should be checked before planning travel.
Health
There are no special vaccinations or inoculations required to enter Iceland, however, if you have come from a country plagued by yellow fever or smallpox, you may be required to prove that you have been vaccinated before you can enter the country.
Emergency phone number in Iceland for the ambulance, fire and police is 112.
Visas
If you hold an ordinary Australian passport you do not need a visa for any stay up to three months.
For further information, please contact:
Consulate-General of Iceland
Jurisdiction throughout New South Wales
16 Birriga Road
Bellevue Hill NSW 2023
Tel: +61 2 9365 7345
Fax: +61 2 9365 7328
Email: iceland@bigpond.net.au
Travel tips and facts
Service charges are included in hotels and at restaurants, except porterage and cloakroom attendant’s fees. Tipping at restaurants is discretionary but if the service is good an additional 10 per cent is not uncommon. Pre-booking of restaurants, hotels and sometimes transport is advisable.
Tourist Information Centre
Bankastræti 2, 101 Reykjavík
Tel: 562 3045
Fax: 562 3057
Email: tourinfo@tourinfo.is
Business hours: 15 May-15 Sept, daily 8.30am-7.00pm
For further travel information please visit Lonely Planet.
Time
Iceland is 11 hours behind Australian Eastern Standard Time.
To find out the current time in Reykjavik, view the World Clock.
Dialling codes
Iceland's country code is 354.
For calls to Iceland from Australia dial: 0011 + 3542+ area code + telephone number
For calls from Iceland to Australia dial: 00 + 61 + area code + telephone number
For further information (eg. area codes) please visit the White Pages - international dialling codes.
Electricity
Iceland’s power supply is 240 volts, 50Hz. The two-pin plugs are the most common.
Weather
Iceland has mild winters (averaging –6 degrees in Reykjavik in January) tempered by the Gulf Stream from the west. Summers are cool and average around 10 degrees from June to August.
For weather details in Iceland, please visit the World Meteorological Organization.
Currency
Oanda currency converter
Public holidays
January 1 - New Year's Day
April 24 - Ascension Day
May 1 - Labour Day
First Sunday in June is National Seaman's Day
June 17 - National Day
December 25 - Christmas Day
December 26 - Second day of Christmas |
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Austrade offices
The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.
Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.
The Austrade office in Denmark is responsible for Iceland and can assist with any queries. A list of Austrade offices (in alphabetical order of country) is available.
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au
Australian Embassy
There is no Australian Embassy in Iceland. The nearest embassy is in Denmark:
Dampfaergevej 26
DK-2100, Copenhagen
Denmark
Tel: +45 7026 3676
Fax: +45 7026 3686
Business hours:
8.30am–4.30pm, Monday to Thursday
8.30am–4.05pm, Friday
(Last updated: 30 Nov 2007)
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OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises
that provide voluntary principles and standards for responsible
business behaviour in a variety of areas, consistent with applicable
domestic laws. These Guidelines are endorsed and promoted by the
Australian Government. For more information, go to the ANCP website. |
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