Can you save? Everything you need to know if you want to emigrate to a small country in Europe

Emigrate to a small European nation like Iceland raises several questions, especially regarding salaries and cost of living. If you are considering this option, it is essential to know how income is distributed and what basic expenses are to understand if saving is possible. In this note, it will be detailed everything you need to know about how resources are earned and spent in this territory.

How much is the minimum wage in Iceland

This alternative does not have a national minimum wage, but rather Values ​​are established through collective agreements negotiated between unions and employers. These agreements vary depending on the sector and type of work.

For example, in the hospitality sector, such as hotels and restaurants, the average salary is 2505 ISK (18.04 USD) per hour, which is equivalent to 400,800 ISK per month (2,909.20 USD).

Emigrate: what are salary taxes like in Iceland

The tax system in Iceland is progressivewhich means that taxes increase with the level of income. The tax brackets for 2024 are as follows:

• 31.48% for income less than 446,136 ISK (3,090 USD) per month.
• 37.98% for income between 446,136 ISK and 1,252,501 ISK (8,660 USD) per month.
• 46.28% for income over 1,252,501 ISK (8,660 USD) per month.

Additionally, workers can apply a personal tax credit of 64,926 ISK (approximately $450) per month, reducing the total tax amount. For the average salary of 400,800 ISK (2,909.20 USD), After taxes, the monthly net income would be approximately 339,555 ISK (2,465 USD).

Emigrate: how much does it cost to live in Iceland

The cost of living in Iceland is highso it is important to be prepared to manage expenses. Below are some of the average monthly costs:

• Rent: 160,000 ISK (1,100 USD).
• Meal: 60,000 ISK (410 USD).
• Transport: 10,800 ISK (74 USD).
• Extra expenses: 30,000 ISK (205 USD).

The average monthly cost is approximately 260,800 ISK (1,893 USD), reflecting the high demand for goods and services in the country.

Emigrate to Iceland: is it possible to save?

With a average net salary of 339,555 ISK (2,465 USD) and a monthly cost of living of 260,800 ISK (1,893 USD), it is possible to save around 78,755 ISK ($572) per month. If measures are taken to reduce expenses, such as sharing accommodation or cooking at home, this margin can increase. Although the savings are not huge, Iceland offers high remunerations.

Although the cost of living in the region is high, salaries are high compared to other European countries. Despite taxes, social benefits, such as access to excellent healthcare and education, make the experience more accessible.