Iceland review - 2016, Page 100

98 ICELAND REVIEW
INVEST IN ICELAND
SPECIAL PROMOTION
ICELAND’S COMPETITIVE EDGE
Iceland offers an array of opportunities
for international investors who are seek-
ing an advanced economy with an ed-
ucated labor force, strategically located
between Europe and North America. The
abundance of green energy from renew-
able geothermal and hydropower sources
has attracted energy-intensive industries
such as aluminum and other metals, but
now there is fast-growing interest from
other sectors as well. “Data Centers,
life sciences, chemicals and tourism are
now attracting foreign investment,” says
Þórður H. Hilmarsson, managing director
of Invest in Iceland. “Knowledge and ad-
vanced infrastructure are key ingredients.”
LIFE SCIENCES AND TECHNOLOGY
Technology and life science firms find that
Iceland is a natural fit for business. “This
is a very positive trend for Iceland,” says
Þórður. “We offer a unique environment
for these investors, and we are optimistic
about future growth.” Key sectors in life
sciences and technology include data cen-
ters, carbon fiber, and algae culture.
Chemical and pharmaceutical corpo-
rations are investing in Iceland as well.
Multinational pharmaceutical company
Alvogen is currently constructing a new
high-tech center on the campus of the
University of Iceland, where the develop-
ment and production of generic pharma-
ceuticals will be the main focus.
COMPETITIVE INCENTIVES
Iceland offers foreign investors a very at-
tractive incentives program. In fact, new
direct investment ventures can apply for
an agreement that ensures the authoriza-
tion to fix an income tax rate ceiling of
just 15 percent for a period of 10 years.
Investors could also fully depreciate real
estate, equipment and moveable assets,
and reduce the rate of property tax and
the general social security charge by 50
percent. Other incentives include grant-
ing exemption from customs and duties
for construction materials, machinery and
equipment and other capital goods, and
the state and municipalities are allowed
to lease sites for projects at reduced
rates.
CHINA FREE TRADE
In 2013, Iceland became the first Europe-
an country to sign an extensive free trade
agreement with China in 2013, which cre-
ates new opportunities for North Amer-
ican and European investors seeking to
export to China. “There are a number of
sectors that would benefit from locating
their operations in Iceland and exporting
to China,” says Þórður. “And there are
opportunities for Chinese businesses to
produce in Iceland for export to Europe.”
Invest in Iceland believes the growing
economy, along with full government
support, makes a compelling case for
foreign investors to consider Iceland.
“Iceland’s government has shown strong
support,” says Þórður. “The government
is dedicated to increasing investment
and ensuring Iceland’s competitiveness.
We are working to communicate that
message abroad.”
invest.is

Key sectors including life sciences, technology, chemicals and
tourism are attracting foreign investment.
Þórður H. Hilmarsson, managing director
of Invest in Iceland.