Financial Considerations

Iceland is one of the most expensive countries in the world, ranks on the top ten list on the cost of living index after countries like Norway and Switzerland.

Cost of Living Index.

If possible, we recommend bringing a credit card rather than cash. Businesses and retailers in Iceland accept all main credit cards.

It can be risky to travel with cash, not only for safety reasons but also because you might face difficulties exchanging your currency into the preferred currency. The Icelandic economy is tiny so please be aware that banks in Iceland cannot accept all available currency in exchange for Icelandic kronas. The most common currencies can be exchanged, for instance, are Euros and Dollars.

If bringing cash is the only option, please exchange it to Euros or Dollars in your home country.

Minimum salary

Post doctoral researchers - basic full time salary approx. 650.000 ISK pr month. Evaluation for previous experience and publication can add to the basic salary.

Doctoral students – Full time approx. 450.000 ISK pr month. The total salary always depends on which type of grant applies. See further detail under Procedures for doctoral grants.

Further detailed information will be provided in the job offer.

Tax

Tax in Iceland is approx. 36% but every working individual receives a fixed amount monthly, personal tax credit, that is subtracted from the total tax payment. Spouses working at home receive it as well so the working spouse can use it for additional subtraction.

International experts, Phd students not considered as experts, are eligible to apply for a special tax discount. If accepted only 75% of the total taxable income is taxed. The discount is available for three years total. More information on the tax discount can be found at Icelandic Center for Research.

Child benefits are calculated through the tax system and depend on the total family income.