Iceland vs Barbados
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฎ๐ธ Iceland โ Municipal Income Tax
Iceland's 69 municipalities set their own local income tax rates, ranging from ~12.44% to ~14.52%, averaging ~14.45%. This is added to the national income tax. The combined effective rate for most earners is about 36.94% (national + municipal). Iceland has no inheritance tax on direct heirs. Real estate transfer tax (stimpilgjald) is 0.8% on property transfers. Iceland is not an EU member but belongs to the EEA, affecting VAT and trade rules.
๐ง๐ง Barbados โ Parish Councils & Land Tax
Barbados's 11 parishes have parish councils that levy land tax at 0.1%โ0.7% of site value. Barbados has long been a significant international business and financial centre, particularly for Canadian companies. Major tax reform in 2019 aligned Barbados with OECD BEPS standards. A tiered corporate tax rate structure was introduced. Barbados was removed from the EU tax haven blacklist following these reforms and maintains competitiveness as an IFC.
Iceland vs Barbados: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ธ Iceland has a higher top income tax rate (~36.94% vs 12.5โ28.5%). ๐ง๐ง Barbados is more favourable for high earners.
๐ VAT/Sales Tax: Iceland has a higher consumption tax (11โ24% vs 17.5%).
๐ข Corporate Tax: ๐ง๐ง Barbados offers a lower corporate rate (9% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ง Barbados taxes investment gains at a lower rate (0% vs 22%), benefiting investors.