Freelance in Iceland

The freelance market in Iceland

Iceland is a small, high-income market with demand in tourism, design, film production, software and translation. English is spoken almost everywhere.

Taxes and legal status

Self-employed people register with the tax authority (Skatturinn), pay income tax with withholding on a calculated salary and social security contributions, and must register for VAT above a small annual turnover. Pension fund payments are mandatory.

This is general information as of 2026, not tax or legal advice. Rates and thresholds change, so check them with the tax authority or a local accountant before you register.

Getting paid

Icelandic clients pay by bank transfer in ISK; foreign clients usually pay in EUR or USD by SWIFT, PayPal or Wise.

• local bank transfers
• SWIFT transfers
• PayPal
• Wise

Skills in demand

• tourism marketing
• film and video production
• software development
• graphic design
• translation between Icelandic and English

Tips for freelancers in Iceland

• Tourism and film productions are the main sources of freelance work.
• Invoice foreign clients in EUR or USD to avoid ISK swings.
• Plan for mandatory pension payments.

Hiring a freelancer from Iceland

Local time in Iceland is UTC+0, so agree in advance on the hours when you are both available for calls. Describe the task, the deadline and the budget in your first message, ask for examples of similar work, and fix what counts as done before work starts. If the work is for a local audience, a freelancer who knows the language and the market will save you rewrites.

Kits for freelancers in Iceland

Kits is an international freelance marketplace that is not tied to one country. Freelancers in Iceland can publish services with a portfolio and a clear price, or respond to clients' jobs, and talk to clients in the built-in chat. The first listing on each account is free, and the site works in nine languages, from English and Spanish to Russian, Turkish and Georgian.