Akureyri region – Iceland’s fastest growing region, and a nice region to live in, too!

Akureyri, dominated by its fine cathedral, is the capital of northern Iceland, the Norðurland. Of the region's 22,000 inhabitants, about 16,000 live in or near Akureyri, where the main sources of employment are agriculture, fishing and industry. The fishing industry has long been the major source of livelihood for residents of the area, but in recent years various industries have also been established. Akureyri serves as the hub of business and services in northern Iceland, and its role as an educational centre is important and growing. This is the most populated region outside the greater Reykjavík area, set in one of the richest and most beautiful agricultural areas of the country.

Even though the region is barely 100 km from the Arctic Circle, the weather is surprisingly mild for this latitude - a factor that contributes to the Eyjafjörður's value as an important ice-free haven all year round.

Akureyri was established as a trading post many centuries ago and became an important harbour that today is home to many vessels of the Icelandic fishing fleet.

Dynamic companies are in the Akureyri region. Among those are two that have got the respectable export awards of the president of Iceland. These companies  are the seafood company Samherji, one of the largest Icelandic seafood companies, and Saeplast that produces plastic products for the food industry.

The region can surely be defined as the capital of the seafood and fisheries industry in Iceland. The largest companies in that field are in the area as well as many large food and beverage companies. Akureyri also holds large educational institutions like university and secondary schools, around these institutions is growing knowledge based industries like marine biotechnology and information technology.

Akureyri, is the capital of North Iceland, The fishing industry has long been the major source of livelihood for residents of the area, but in recent years various high technology industries and services have been established. Akureyri serves as the hub of business and services in northern Iceland, and its role as an educational centre is important and growing. This is the most populated region outside the Reykjavík area.

Below can be found further information on the area

Weather: Even though the region is barely 100 km from the Arctic Circle, the weather is surprisingly mild for this latitude - a factor that contributes to the Eyjafjörður's value as an important ice-free haven all year round.

Economy: The local economy is supported by a steadily expanding commercial and service sector, in which over 50 per cent of the local working population is employed, while Akureyri is also developing a reputation as a centre of logistical activities.

Education: As well as being the administrative centre of the region, Akureyri contains one of the country's leading university, with faculties in computer science, health care, teaching, fisheries and Life science, and management as well as co-operating with many Icelandic research institutions based in and around the university campus.

Water: The special nature of the local environment is one of the region's prime assets. The fresh water in this area is exceptionally pure, while the local marine habitat is one of the least polluted in the world, making it an excellent location for aquaculture and Marine Biotechnology.  Eyjafjordur is a fresh location.

Quality of life: Thanks to a strong economy, Akureyri enjoys a high standard of living as well as an enviably low rate of unemployment. And here people enjoy the benefit of an environmentally friendly energy source, because houses are heated by means of a geothermal heating system.

The Future: Meanwhile, bearing in mind the need to safeguard its future, the community has widened its economic base from traditional industry into tourism, transportation and high technology services.

Technology: The region has a very well established cluster of fisheries, food production and related services.  But the region does not only consist of fish, the region’s trade structure is diverse.  High technology skills are centralised in the Akureyri University, the incubator centres, training and research institutes and in the regions technology and service companies. 

Modern: A highly educated workforce graduates from several different establishments.  The Akureyri Region has good and fast logistics connections all over the world.   A well established digital infrastructure with high speed connections available in every household and a political commitment to develop the society as a international test-bed for e-commerce.

Power: Akureyri region is an excellent location for power intensive processes.  An energy charge is to be negotiated within the range of 2,0 – 2,5 US scents/kWh, based on the reliability of the power supply and on the assumption that there will be an energy take of more than 100 GWh/year with a utilization of 8000 hours or more.  If the customer can accept part of the power supply as secondary power, the price may be substantially lower.  The bulk of the electric power in Iceland is sold as primary energy from a system dominated by hydroelectric sources.  That means that it is delivered any time when the customer needs it at high security rate.  Due to the variation in river flows, customers in the Icelandic power system can negotiate to take out a certain amount of the total energy as secondary energy.  The secondary energy is sold at a lower rate than the primary energy but the delivery is only guaranteed up to a certain minimum amount.  Thus power intensive industries, which have a certain flexibility to reduce consumption during dry spells, can find it beneficial to take a part of the power at a lower price in the form of secondary energy.

Commitment: The power companies are willing to negotiate a long-term contract over app. 20 years, based on the assumption that the power price will be linked to some officially registered variable, such as a price production index or similar.

Corporate income tax:  18%, which is among the lowest corporate tax in the world.

Local taxes:   No municipal taxes are levied on profits made by corporations.  Property taxes are paid locally by businesses, along with local service changes are the main source of revenue for the local government.   Property taxes are 1,99% of the real estate value in Akureyri.

Exemptions: Tariff-free access to the single market of the European Union

Free trade agreements with most other European countries, giving tariff-free access to a market of 500 million people

Incentive: Icelandic tax law does not provide for any particular tax incentives, other than for film prodction where 12% of production cost is refundable. Various initial expenses as well as research and development costs can be deducted from the profit before tax in the year they occur.

Subsidy: New businesses established into the area are provided disallowance of local rates for three years. Compnaies can apply for governmental grants, please contact us for furhter information.

Assistance: AFE will provide a comprehensive aftercare program to companies who locate in the area.

International culture:  The people of Akureyri region are internationally minded and open to foreign cultures.  Much of the Icelandic economy is based on export business and therefore the culture is very internationally minded. 

Health-care: Akureyri has a full service University Hospital with active surgery and most operation specialities.  It is the second largest hospital in Iceland with a staff of 650.  

Population:

Geothermal heat: Iceland enjoys a number of geothermal hot water swimming pools and swimming and bathing is very popular for recreation.