Iceland vs Serbia
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
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.
๐ท๐ธ Serbia โ Municipal & City Taxes
Serbia's 145 local self-government units (cities and municipalities) levy local communal taxes including sign/advertisement tax, local utilities contribution, and vehicle fees. Property tax (porez na imovinu) is locally set at 0.1%โ0.4% for citizens. Belgrade has higher property tax values than other cities. Corporate income tax is national at 15%. Serbia has EU candidate status and is aligning tax legislation with EU standards. The flat 15% corporate rate and low income tax rates make it competitive in the region.
Iceland vs Serbia: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ธ Iceland has a higher top income tax rate (~36.94% vs 10โ20%). ๐ท๐ธ Serbia is more favourable for high earners.
๐ VAT/Sales Tax: Iceland has a higher consumption tax (11โ24% vs 10โ20%).
๐ข Corporate Tax: ๐ท๐ธ Serbia offers a lower corporate rate (15% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐ท๐ธ Serbia taxes investment gains at a lower rate (15% vs 22%), benefiting investors.