The government in Iceland focuses on investments and according to Act 41/2015 that apply to whole Iceland except the capital area there are various incentives. Among those are that the rate of income tax can be taken down to 15% for 10 years, annual depreciation instead of full year depreciation, real estate, equipment and movable assets can be depreciated, municipalities can sell or lease a site for investment procet at a price below normal market price etc. 

Businesses can get grants from municipalities and the state if they fulfill particular criteria. Annual turnover of the investment project must be more than 300 million ISK or create 20 permanent jobs during the first two years. This does not apply to insurance, security, airports, energy or financial companies. The aid ceiling is 15% of initial investment cost but can be 25% for medium sized companies and 35% for small companies. Innovation companies can also get tax credits for research and development. The tax credit is 20% of actual R&D cost but there is a ceiling on that as well.

There are various government grants available as well as grants from individual companies for research and development such as Rannís – The Icelandic Centre for Research and The Innovation Center in Iceland. Various banks also offer startup companies grands and support.

Producers of films and TV material can apply for 25% reimbursement of all costs associated with the cost of producing the material in Iceland.