Work in Germany for a corporation based in Iceland

By Mark 13 April 2022

Can I work remotely for a company in Iceland while being in Germany?

It is usually doable, but we recommand to check the following key points first:

  1. The company must be based in Iceland and have a valid company registration in Iceland.
  2. The company must have a valid business license in Iceland.
  3. The company must have a valid tax number in Iceland.
  4. The company must be able to provide you with a valid residence permit in Iceland.
  5. The company must be able to provide you with a valid work permit in Iceland.
  6. The company must be able to provide you with a valid visa in Iceland.

How to live in Germany and find remote work in Iceland?

Finding remote work in Iceland if you are located in Germany might be difficult, therefore we recommend to use a service like oDesk or Upwork to find remote work in Iceland.

We have been using Upwork for the past 6 months and we have found a remote job in Iceland.
Our story
Our story is a bit long, so we will start from the beginning.
We are two people, from Germany and Iceland, who were looking for remote work in Germany.
We were looking for a remote job, because we wanted to live in Germany and we wanted to work remotely.
We have been living in Germany for the past 4 years, and we wanted to stay in Germany.
We were looking for remote work, because we wanted to work from home.
We were looking for a remote job, because we wanted to work from home.

How a company in Iceland can send my salary in Germany?

When working remotely for a corporation in Iceland, you salary can be send to Germany but you have to pay the VAT. This means that you have to pay the VAT to the company in Iceland, which is a lot.

For a company in Iceland to send your salary to Germany, they have to pay the VAT to the German tax office. The tax office then send the VAT to the company in Iceland, which is deducted from the salary you receive.
If you live in Germany and work for a company in Iceland, you will have to pay the VAT to the German tax office.
The company in Iceland will deduct the VAT from your salary.

Where to pay my taxes when working remotely in Germany for a company in Iceland?

If you are working remotely in Germany for a corporation established in Iceland, taxes could seem complicated but in fact , it’s not that complicated.

If you are a German citizen working for a company established in Iceland, you need to pay taxes to the German tax authorities. You can do so by filling in a tax form, called a Kontoauszug, and send it to the tax authorities in Germany.
The Kontoauszug is sent to the tax authorities in Germany by the company, who will then send it to the tax authorities in Iceland.